The media war between Virgin and Sky intensified yesterday as Virgin Media submitted papers to the High Court accusing the Rupert Murdoch-owned broadcaster of trying to sabotage its attempts to break into the paid-for television market.

A 33-page document alleges that Sky doubled its asking price for Virgin's right to broadcast its basic channels and then threatened to pay nothing in exchange for Virgin's channels.

This, the Richard Branson-backed company claims, is a cynical attempt to retain Sky's virtually unchallenged position in the British paid-for TV industry.

Virgin claims that after Sky paid £35.6 million to carry Bravo, Living and Trouble channels in 2006, then offered nothing for the privilege in 2007.

Also, Virgin paid Sky £23.6 million to carry its basic channels last year but was asked to stump up £48.4 million in February this year.

However, Sky claims that Virgin has its figures wrong and that the new charge is for additional services such as high-definition television and video-on-demand rights.

A Sky spokesman told the Guardian Virgin's version of events "contains substantial factual inaccuracies and omissions" and is "without foundation".

He added: "We've continually urged Virgin Media to return to the negotiating table and we repeat this offer today."

Since relations between the two companies broke down in February, Virgin Media customers have been left without the Sky channels.

Both Sky and Virgin Media offer high speed broadband bundled with their television packages.




Friday, 27th April 2007

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