George's Area of Rehabilitation & Sentimental Significance

"Virgin Threatens Legal Action Against Sky Over Fee Dispute

by Robin Pilgrim, LawAndTax-News.com, London 09 March 2007

Virgin Media an

nounced on Monday that following Sky's withdrawal of its basic channels from the Virgin Media TV service, it will pursue action in the high court if the carriage dispute is not resolved within 30 days.

Historically, Sky and Virgin Media have each retailed the other's channels to their customers: Virgin Media TV channels, such as Living and Bravo, have been retailed by Sky to its customers; and Sky's basics channels have been retailed by Virgin Media to its customers.

However, in the past few months, Sky has sought to increase the price for its basic channels, whilst cutting the price it pays for Virgin Media TV's channels, a state of affairs which has led to the loss by Virgin Media customers of several of the main Sky channels.

According to the group, owned by Richard Brason:

"Virgin Media is challenging the pay TV giant for its abuse of dominance."

"The remedies sought will include supply of Sky's basic channels at a reasonable commercial rate, as well as fair payment for Sky's carriage of Virgin Media TV channels, such as Living and Bravo. Virgin Media will also seek damages if the dispute is not resolved."

Virgin Media's CEO Steve Burch added:

"We are not interested in prolonging this dispute any longer than necessary but we will not allow Virgin Media or our customers to be the victim of Sky's market power. In the interest of the consumer, we want these issues resolved quickly."

Source :http://www.lawandtax-news.com/asp/story.asp?storyname=26602

My Bit :

Sky seem to be playing the game very unfairly, it's not like Virgin did anything dirty. It's a sucker for Virgin customers they just lost some of the best channels around and the best programs e.g; Lost, 24 - the stuff you couldn't live without.