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| Version 1 | Version 2 |
|---|---|
| Virgin TV in BSkyB court action | Virgin TV in BSkyB court action |
| (about 1 hour later) | |
| Virgin Media has launched a High Court action against BSkyB in a programming row between the UK broadcasters. | Virgin Media has launched a High Court action against BSkyB in a programming row between the UK broadcasters. |
| The Sky Basic package, including Sky One which shows Lost and 24, was cut from Virgin last month in a row over fees Sky wanted to charge. | The Sky Basic package, including Sky One which shows Lost and 24, was cut from Virgin last month in a row over fees Sky wanted to charge. |
| Virgin said it was taking action to resolve the row, claiming Sky was abusing its dominant market position. | Virgin said it was taking action to resolve the row, claiming Sky was abusing its dominant market position. |
| Denying the claims, Sky said the action was "without foundation" and called on Virgin to resume negotiations. | Denying the claims, Sky said the action was "without foundation" and called on Virgin to resume negotiations. |
| Virgin claims Sky tried to double its prices. However, Sky says the increase would have cost Virgin just 3 pence per customer per day. | Virgin claims Sky tried to double its prices. However, Sky says the increase would have cost Virgin just 3 pence per customer per day. |
| Wider dispute | Wider dispute |
| However, the charges for carrying Sky channels is not the only issue at stake. | However, the charges for carrying Sky channels is not the only issue at stake. |
| Virgin is also challenging the rates imposed by Sky for carrying Virgin's TV channels. | Virgin is also challenging the rates imposed by Sky for carrying Virgin's TV channels. |
| SKY BASICS CHANNELS Sky OneSky TwoSky NewsSky Sports NewsSky Travel Q&A: Sky-Virgin row | SKY BASICS CHANNELS Sky OneSky TwoSky NewsSky Sports NewsSky Travel Q&A: Sky-Virgin row |
| Virgin Media includes the main cable TV supplier in the UK, which was formerly known as NTL. | Virgin Media includes the main cable TV supplier in the UK, which was formerly known as NTL. |
| It has brought the action under the UK Competition Act 1998 and Article 82 of the EC Treaty. | It has brought the action under the UK Competition Act 1998 and Article 82 of the EC Treaty. |
| "Sky, which accounts for almost 70% of the country's pay TV subscribers, is dominant in the UK Pay TV market and has engaged in a strategy to stifle competition by using its dominance against Virgin Media," the company said in a statement. | "Sky, which accounts for almost 70% of the country's pay TV subscribers, is dominant in the UK Pay TV market and has engaged in a strategy to stifle competition by using its dominance against Virgin Media," the company said in a statement. |
| It accused Sky of "forcing" it to accept much lower fees for some of its channels, and then hiking the price it charged Virgin Media for providing the basic channels package. | It accused Sky of "forcing" it to accept much lower fees for some of its channels, and then hiking the price it charged Virgin Media for providing the basic channels package. |
| But Sky has denied the claims. | But Sky has denied the claims. |
| "This action is without foundation and is an obstacle to bringing back Sky's basic channels for Virgin Media customers," chief operating officer Mike Darcey said. | "This action is without foundation and is an obstacle to bringing back Sky's basic channels for Virgin Media customers," chief operating officer Mike Darcey said. |
| 'More choice' | 'More choice' |
| He added the company had invited Virgin to return to the negotiating table and that the services Sky was offering for the higher fee would have meant a "bigger and better choice" for customers. | He added the company had invited Virgin to return to the negotiating table and that the services Sky was offering for the higher fee would have meant a "bigger and better choice" for customers. |
| A Sky spokesman added that throughout negotiations between the two, Sky had offered to include two more channels - Sky Three and Sky Arts - as well as an On Demand and High Definition service to Virgin for the increased fee. | |
| "Virgin Media is saving money as a result of this dispute but it hasn't reduced prices," Mr Darcy added. | "Virgin Media is saving money as a result of this dispute but it hasn't reduced prices," Mr Darcy added. |
| "Millions of customers have lost access to the shows they enjoy and it is clear that many resent paying full prices for fewer channels." | "Millions of customers have lost access to the shows they enjoy and it is clear that many resent paying full prices for fewer channels." |
| Last month the National Consumer Council accused Virgin Media and BSkyB of "behaving like children", and regulator Ofcom has asked for a review of the digital television market in the wake of the row. | Last month the National Consumer Council accused Virgin Media and BSkyB of "behaving like children", and regulator Ofcom has asked for a review of the digital television market in the wake of the row. |
| Virgin Media was formed from the merger of cable TV firm NTL and Virgin Mobile. The firm's biggest shareholder is entrepreneur Sir Richard Branson. | Virgin Media was formed from the merger of cable TV firm NTL and Virgin Mobile. The firm's biggest shareholder is entrepreneur Sir Richard Branson. |
| BSkyB is run by media mogul Rupert Murdoch's son James. | BSkyB is run by media mogul Rupert Murdoch's son James. |