Sky urges Virgin Media to sign new deal for basic channels

LONDON - BSkyB has challenged Virgin Media to sign a new deal to continue to carry its basic portfolio of channels across the cable network, which 'reflects the proposed new terms and considerable value of its basic channels'.

Sky said that without a new agreement, it is possible that Sky's basic channels could cease to be available to Virgin Media customers, which would be a major blow to the newly rebranded rival.

The broadcaster has now begun to broadcast messages across its channels to urge cable viewers to encourage Virgin Media to reach a new agreement.

Sky confirmed that "discussions are continuing between Sky and Virgin Media over a new agreement for distribution of Sky's basic channel portfolio to cable TV viewers".

The broadcaster says it wants its channels to be available to cable television viewers and is offering more value to Virgin Media than ever before.

The 10 channels on offer to Virgin now include Artsworld and Sky Three, as well as Sky One, Sky Two, Sky News, Sky Sports News and Sky Travel.

Later this year, Sky News, Sky Sports News and Sky Three will no longer be available free-to-air on digital terrestrial TV. This will make them more valuable to Virgin Media and its customers.

According to Sky, it invests £180m a year in programming for its basic channels, which it says is twice as much as any other non-terrestrial broadcaster.

It also says that investment in Sky's basic channels has increased by 50% over five years, with further increases expected across the portfolio.

A Sky spokesman said: "We want our basic channels to remain available to NTL-Virgin customers and we're working towards a new agreement that will keep them on air. We want to avoid disruption for customers who enjoy these channels but, ultimately, it is NTL-Virgin's choice. We'd urge cable customers who feel strongly about this situation to tell NTL-Virgin what they think."

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