Virgin Media may take Sky to court

Following Sky’s withdrawal of its basic channels from Virgin Media’s TV service, Virgin have announced that they will take their case to court if the dispute is not resolved within 30 days.

Since the beginning of March, Virgin Media have been left without Sky’s basic channel package following disagreements over the renewal costs. Both parties however are standing firm by their arguments. Sky says that the proposed fees are justified, with hit TV programmes such as Lost on Sky One. Virgin Media however says the fees are too high and not justified, especially with the declining popularity of the channels over the last few years. However, the news is no comfort to Virgin Media customers who watch programmes on these channels heavily.

According to Virgin Media’s website, “Virgin Media has formally advised Sky that it will pursue action in the high court if their carriage disputes are not resolved within 30 days. This comes on the heels of Sky’s rejection of an offer by Virgin Media to have the matter resolved through legally binding arbitration by an independent expert.”

Virgin Media’s CEO Steve Burch also said on the company website: “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.”

BBC’s Watchdog programme aired today has also received many emails following the dispute, with many viewers trying to cancel their contract but are unable to as they are still within their contract period. However a statement from Virgin Media to the show said that they will let customers leave if they contact them this month (March 2007), so any viewers interested in leaving who are still within contract should give them a call to see if they can leave without penalty.