NTL to carry Sky-branded entertainment channels

LONDON - BSkyB's new TV channels, including its recently launched new music stations, are to be carried on NTL's cable network until 2006 as part of a deal between the two rivals.

NTL to carry Sky-branded entertainment channels

The three-year deal, which begins at the end of July, sees the current contracts for carriage of Sky News and Sky One renewed. They will be joined for the first time by entertainment offering Sky One Mix, Sky Travel and Sky Travel Extra, as well as Sky's new music channels The Amp, Flaunt and Scuzz.

The deal extends the reach of the channels to NTL's 1.25m subscribers who join Sky Digital's existing 6.7m subscribers.

Aizad Hussain, managing director of NTL Home, said: "We are delighted to have secured this long-term agreement, adding further momentum to our programme of product enhancement. This is more good news for NTL customers."

BSkyB is currently looking to boost revenues by making its channels available to more people.

Last year, BSkyB hired former Five chief executive Dawn Airey to develop new channels for the broadcaster. Since she joined, the broadcaster has launched the three music channels.

Martin Goswami, commercial director at BSkyB, said: "This agreement is a further step towards broadening the distribution and reach of Sky channels."

The financial terms of the deal were not released, however. Sky has been accused in the past of charging anticompetitive rates to rivals for carriage of its channels.

Last year, Sky was found not guilty of acting anticompetitively by the Office of Fair Trading of overcharging its rivals, following a complaint by the now defunct digital terrestrial service ITV Digital.

NTL rival Telewest is also thought to be in talks with Sky about a similar carriage deal for Sky's branded channels.

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