Wednesday, September 22, 2010

Sky buys TV channels from Virgin in 160m deal

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Satellite broadcaster BSkyB right away acquired radio channels Living and Bravo as piece of a �160 million understanding with opposition Virgin Media.

The squeeze of Virgin Media Television (VMtv) additionally involves Challenge, Challenge Jackpot and Virgin1, that will be rebranded.

As well as expanding the range of simple compensate TV channels, Sky pronounced the understanding separated the carriage fees it right away pays for distributing Virgin channels on the platform.

Virgin Media pronounced the understanding had generated estimable worth and would concede it to suggest the wire blurb operation an extended range of Sky services, together with HD channels and on-demand content.

Todays sale agreement will see Sky compensate �105 million on execution of the understanding and the residue following regulatory approval.

BSkyB and Virgin clashed in 2007 in a authorised conflict over how most they would compensate each alternative to host their own-brand channels.

Before todays deal, BSkyB had formerly argued in justice that Virgins channels were roughly meaningless to the subscribers.

Virgin pronounced the 7 channelswhich camber compensate and free-to-air television reach some-more than twenty-four million adult viewers each month.

This move equates to placement of Skys simple channel line-up, together with Sky1 and Sky Arts, on Virgin Medias wire TV use is right away secured.

Virgin Media pronounced the sale would concede it to concentration on on condition that subscribers with super-fast wire TV and broadband provision.

Neil Berkett, Virgin Media arch executive, said: The sale of the channels blurb operation has generated estimable value.

Together with the new blurb agreements we"ve voiced today, it will concede us to concentration some-more closely on the plan of exploiting Virgin Medias super-fast connectivity to suggest the blurb operation a range of the really most appropriate calm by a rarely versatile next-generation party application.

Under the deal, Virgin Media has concluded for the initial time to suggest blurb operation Skys simple HD channels, Sky Sports HD1 and Sky Sports HD2, and all Sky Movies HD channels.

It will additionally have Skys simple and reward channels accessible to subscribers by the on-demand TV service.

BSkyB arch senior manager Jeremy Darroch said: VMtv is an tasteful investment event that complements the existent calm blurb operation and delivers vital and monetary benefits.

We are gratified that, by blurb negotiation, we have been means to safeguard far-reaching placement of the channels to a flourishing compensate TV universe.

The organisation launched Virgin1 in Oct 2007 nonetheless channels such as Living and Bravo came from the former ntl/Telewest business. This in spin joined with Virgin Mobile in 2007 and was afterwards rebranded as Virgin Media.

The Living channel is described as the idealisation party end in compensate television, full of guilty pleasures and tacky glamour, whilst Virgin1 is described as being smart publication TV at the most appropriate and hosts shows such as Terminator: The Sarah Connor Chronicles.

Virgin Media additionally offers blurb operation broadband and write services to one side TV channels.

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