Virgin and Setanta deal to 'transform the world of TV sport'

LONDON - Virgin Media has signed a deal with Irish sports broadcaster Setanta to provide six free-to-view sports channels as part of its 'XL' cable TV package, which will further challenge Sky's dominance.

The channels - Setanta Sports 1 and 2, Golf, Racing UK, Celtic TV and Rangers TV - will be made available to new and existing customers subscribed to the Virgin Media XL package from next Thursday, July 26.

XL customers currently pay £38.50 a month for access to 125 channels. Customers signed up to a cheaper Virgin Media TV package can add the Setanta channels to their service for a fee of £8 a month.

The deal will come as a boost for Setanta, which paid £392m for exclusive rights to 46 live Premier League games for the next three years, plus 60 Scottish Premier League matches and a selection of FA Cup and England internationals.

Virgin Media stressed the inclusion of the six Setanta channels was not a "one-off" promotional or introductory offer but a permanent fixture for its 1.4m subscribers.

Virgin Media's chief executive for content, Malcolm Wall, said the deal would "transform the world of TV sport".

"When we launched Virgin Media last February, we said we were going to shake things up, provide something unique and give our customers superior offerings," he said.

"This is only the beginning. In terms of both sport and other new high-value content, there's much more to come from Virgin Media."

Virgin Media has been locked in a public spat with Sky since it rebranded from NTL:Telewest.

The new service used to carry the majority of Sky's channels, but the basic package, including Sky One and Sky News, were pulled in March after Virgin Media refused to pay a reported £35m fee to continue showing the channels. Virgin Media customers still have available the Sky Sports package.

Both sides have engaged in high-profile advertising campaigns ever since, designed to lure customers from the rival service. Sky appears to be winning the battle as customers desert Virgin Media.

Earlier this week, BT announced that its broadband TV service, BT Vision, would also feature live and "near live" Premiership coverage from Setanta.

The BT service is being marketed at those who are unwilling to pay the subscription rates charged by rival subscribers such as Sky.

BT's basic monthly package would cost £4 a month, with "near live" matches available on a pay-as-you-go basis for £1.99.

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