Virgin Media have reportedly refused the latest offer from Sky to end the much previously reported dispute between the two broadcasters which has left the Virgin cable network without Sky's core channels like Sky One and Sky News.
As previously reported, Virgin say that Sky is asking too much for permission to include the channels as part of its cable TV service, especially given the cut they took in a previous deal regarding the continued broadcast of Virgin's proprietary channels - like UKTV and Living - on the Sky satellite TV network. Sky argue that Virgin are penny pinching because they spent so much money rebranding from NTL to Virgin at the start of the year.
The whole thing is currently rumbling through the courts, where Virgin are accusing Sky of abusing its dominance in the multi-channel TV sector (aside from the fees dispute, Virgin are still pissed off that Sky's investment into ITV last year arguably scuppered their attempts to takeover the terrestrial broadcaster), but negotiations continue outside of court also.
The dispute is now seemingly over £10 million. Virgin say they won't pay more than £30 million for the Sky channels, Sky say they won't accept less than £40 million. In a last minute conciliatory move Sky chief James Murdoch last week suggested the two firms cut the difference and agree on £35 million, but Virgin knocked the offer back.
Murdoch said his offer represented "a significant ceding of value to Virgin Media on our part", and after Virgin had turned it down he wrote to them: "We can only conclude that you are not genuinely interested in offering Sky's channels to your customers, preferring to continue to deny Sky access to your network as a means of pursuing wider corporate goals, simultaneously harming Sky commercially by denying us wholesale subscription and advertising revenues".
The case will presumably now go to court.