Virgin Media has submitted claims of rival TV/broadband operator Sky abusing its ‘dominant position’ to the High Court. The 33-page document states that Sky asked for a 70% hike on carriage fees for the channels - including Sky One, Sky News and Sky Sports - which were withdrawn from the cable platform on the 1st of March.
This, Virgin says, would have seen Sky receiving a sum roughly equivalent to more than 20 times the initial fee that Sky had agreed on. Virgin also claim that Sky strong-armed them into receiving less money for the broadcasting rights to channels including Bravo and Living TV – channels owned by Virgin Media.
Sky have been quick to dismiss the claim; a Sky spokesperson responded by saying: ”Virgin Media’s claim is without foundation and reinforces our view that their case as a whole is misconceived. Sky will file its response with the High Court in due course.”
Virgin and Sky have been trading statements about figures and their veracity, with each side quick to rubbish claims made by the other. Amid the spin doctorisms and press releases, it is unclear as to which side is telling the ‘truth’.
Sky also urged Virgin to renegotiate at the last minute, but again, it is unclear if this was an attempt to halt court proceedings, and therefore an admission of guilt, or if it was a genuine olive branch from the satellite giant.
Whilst courtroom nose-thumbing continues, the battle has spilled out into the high street, with the two rival TV platforms now competing for sales in electronic goods retailers Currys. The Dixons Stores Group (DSG) is the first UK retail chain to supply both services to customers.
Typically, Currys aren’t favoring either side. “It will be fascinating to observe the contest between two exceptional products and brands,” says Gemma Winfield, digital services marketing and buying manager at Currys, adding that “[b]oth packages represent superlative value for money, but both have different strengths to suit customers’ lifestyles and requirements.”
Sky certainly offer a cheaper bundled deal than Virgin – TV, Phone and Broadband for £26 a month, the nearest similar Virgin deal costs £30 a month for the same services which gives you Broadband Size: M which has a top speed of 2Mbps, as opposed to the Sky Broadband Mid package included in See, Speak, Surf which has a maximum speed of 8Mbps.
Virgin Media have an edge over Sky in terms of the free mobile minutes offered by their bundled deals, and Virgin customers also do not have to pay BT line rental – unlike Sky customers – as phone calls are made over the cable network, which is owned by Virgin.
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