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Virgin Media secures deal with Sky Sports for next season Virgin Media secures deal with Sky Sports for next season
(5 months later)
Virgin Media has secured the Sky Sports channels for the coming year, piling further pressure on BT to do a deal with the satellite broadcaster before the next football season begins in August.Virgin Media has secured the Sky Sports channels for the coming year, piling further pressure on BT to do a deal with the satellite broadcaster before the next football season begins in August.
Virgin Media's agreement to carry Sky Sports 1 and 2 was negotiated in 2010 and due to expire this summer, but it is now expected to extend into next year.Virgin Media's agreement to carry Sky Sports 1 and 2 was negotiated in 2010 and due to expire this summer, but it is now expected to extend into next year.
"We have surity through 2013," Virgin Media chief executive Neil Berkett said. "I'm comfortable with where we are in terms of continuity and surity of supply.""We have surity through 2013," Virgin Media chief executive Neil Berkett said. "I'm comfortable with where we are in terms of continuity and surity of supply."
By contrast, BT is struggling to agree terms to carry Sky's two main sports channels on its flagship YouView service.By contrast, BT is struggling to agree terms to carry Sky's two main sports channels on its flagship YouView service.
The telecoms group is mounting the biggest challenge yet to Sky's dominance in football by paying the Premier League £738m to show 38 Premier League matches a year for the next three years, and will launch its own sports channels this summer.The telecoms group is mounting the biggest challenge yet to Sky's dominance in football by paying the Premier League £738m to show 38 Premier League matches a year for the next three years, and will launch its own sports channels this summer.
BT has a deal until 2016 to carry Sky Sports 1 and 2 on its BT Vision box, but that service is being phased out in favour of YouView.BT has a deal until 2016 to carry Sky Sports 1 and 2 on its BT Vision box, but that service is being phased out in favour of YouView.
TalkTalk has an ongoing deal to carry all of Sky's sports channels, meaning BT could now be the only major pay TV provider without the satellite broadcaster's top flight football on its flagship TV service during the coming season.TalkTalk has an ongoing deal to carry all of Sky's sports channels, meaning BT could now be the only major pay TV provider without the satellite broadcaster's top flight football on its flagship TV service during the coming season.
"We're not really going after Sky sports customers," a BT spokesman said. "There are a lot of customers out there who are loyal to Sky and we'll be looking to sell them our service as well". BT will be able to distribute its channels via Sky dishes to both homes and pubs."We're not really going after Sky sports customers," a BT spokesman said. "There are a lot of customers out there who are loyal to Sky and we'll be looking to sell them our service as well". BT will be able to distribute its channels via Sky dishes to both homes and pubs.
In a sign of how telecoms and content are converging, it is thought Virgin and Sky have traded football for fibre-optic cables.In a sign of how telecoms and content are converging, it is thought Virgin and Sky have traded football for fibre-optic cables.
Virgin announced Wednesday that it had struck a deal to rent its fibre 'backhaul' to the satellite group, helping carry internet traffic across its core network, although not as far as customers' homes, for which Sky still relies on BT.Virgin announced Wednesday that it had struck a deal to rent its fibre 'backhaul' to the satellite group, helping carry internet traffic across its core network, although not as far as customers' homes, for which Sky still relies on BT.
"I find it unbelievable that Virgin won't have a deal with Sky on the sports because they've just done a deal on backhaul and they'll all be connected," said Toby Syfret at Enders Analysis. "There is a better and better relationship between them helped by the aggressive stance taken by BT which it feels it has to attack Sky directly in the content area.""I find it unbelievable that Virgin won't have a deal with Sky on the sports because they've just done a deal on backhaul and they'll all be connected," said Toby Syfret at Enders Analysis. "There is a better and better relationship between them helped by the aggressive stance taken by BT which it feels it has to attack Sky directly in the content area."
Virgin is Sky's biggest wholesale customer, generating around 700,000 Sky Sports subscriptions, according to Enders. Virgin's access to Sky's premium sports and movies channels was negotiated in June 2010 as part of its decision to exit programme making by selling its remaining television channels, including Living, to Sky for £160m.Virgin is Sky's biggest wholesale customer, generating around 700,000 Sky Sports subscriptions, according to Enders. Virgin's access to Sky's premium sports and movies channels was negotiated in June 2010 as part of its decision to exit programme making by selling its remaining television channels, including Living, to Sky for £160m.
Virgin Media saw revenues rise 3.6% to just over £1bn in the three months to March, the company said Wednesday, boosted by 13,700 new pay TV customers and 37,400 broadband customers.Virgin Media saw revenues rise 3.6% to just over £1bn in the three months to March, the company said Wednesday, boosted by 13,700 new pay TV customers and 37,400 broadband customers.
In the cable company's last set of results before it merges into John Malone's Liberty Global in the wake of a $15.8bn (£10.4bn) takeover deal, chief executive Neil Berkett said the business had "never been healthier" with the customer defection rate at an all time low.In the cable company's last set of results before it merges into John Malone's Liberty Global in the wake of a $15.8bn (£10.4bn) takeover deal, chief executive Neil Berkett said the business had "never been healthier" with the customer defection rate at an all time low.
He also waded into the war of words between TalkTalk chief executive Dido Harding and her opposite number at BT, Ian Livingston. Harding has been lobbying for the regulator to slap controls on the prices at which BT rents its fibre cables to TalkTalk and other internet service providers.He also waded into the war of words between TalkTalk chief executive Dido Harding and her opposite number at BT, Ian Livingston. Harding has been lobbying for the regulator to slap controls on the prices at which BT rents its fibre cables to TalkTalk and other internet service providers.
"This spat that is going on between BT and TalkTalk at the moment is a bit disappointing," said Berkett. "Some of the language between Dido and Ian is not overly helpful. He believes BT should be free to set its own prices."This spat that is going on between BT and TalkTalk at the moment is a bit disappointing," said Berkett. "Some of the language between Dido and Ian is not overly helpful. He believes BT should be free to set its own prices.
"You have to have a free market where an infrastructure supplier has the incentive to invest," said Berkett."You have to have a free market where an infrastructure supplier has the incentive to invest," said Berkett.
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