Virgin Media and Sky bosses discuss return of channels

by Daniel Farey-Jones Brand Republic 09-May-08, 09:00

LONDON - Virgin Media's chief executive Neil Berkett has said he has been talking to his BSkyB counterpart, Jeremy Darroch, about bringing Sky channels back to Virgin more than a year after they were yanked, depriving viewers of hit shows 'Battlestar Galactica' and 'Lost'.

Sky pulled its basic-tier channels - Sky One, Sky News and Sky Sports News - from Virgin Media in February 2007, just after its rival unveiled its rebrand from NTL/Telewest.

The two sides, then under Sky chief executive James Murdoch and Virgin Media chief executive Steve Burch, could not agree a renewal deal for the carriage of the Sky channels.

Since then, Berkett took over at Virgin in March and Darroch took over at Sky in December.

While Sky has already revealed it has been talking to Virgin about a resolution, Berkett's words yesterday indicate talks are continuing at the highest level.

According to the Daily Telegraph, Berkett said: "We are in dialogue. Both Jeremy Darroch and myself are saying that we'd like to do a deal. The unfortunate thing is we don't have a conclusion. I'd love to do a deal but we haven't done one yet."

A speedy agreement looks unlikely at this stage. The loss of the channels, particularly the entertainment channel Sky One, led thousands of Virgin subscribers to leave and switch to Sky.

Discussions may also cover the possibility of a new deal covering what Sky is paying to carry Virgin Media-owned channels. Sky slashed the amount it paid Virgin ahead of the impasse over Virgin carrying Sky channels.

Berkett was speaking at the presentation of Virgin's first quarter results, which showed it had added 37,000 cable TV customers during the first three months of the year.

News of the talks follows weekend speculation that BSkyB could be one of the bidders for Virgin Media Television, which Virgin Media is considering selling off.

Virgin Media TV includes the channels Virgin Television, Bravo, LivingTV and the UKTV channels, of which the BBC has a 50% interest.

BBC Worldwide is another possible bidder for the Virgin channels. It is considering partnering private equity to make a bid.

 

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Comment

MARK GRIFFITHS - 09/05/2008

Message to Neil Berkett and Jeremy Darroch: you have done irreversible damage to both your brands. While you've been squabbling over your corporate profits, the sideshow (otherwise known as 'your customers') has moved on. We don't even watch TV any more. So, please take your time coming to your compromise on how much money you think you're going to make. After the consideration you've shown us, we couldn't care less.

 
 

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