Mar 6, 2007 • 1 min read

Virgin Media threatens legal action over Sky dispute

Virgin Media says it will take BSkyB to the High Court within 30 days unless the carriage dispute is resolved, after Sky rejected arbitration.

Virgin Media is now threatening to go legal over its long running and much previously reported dispute with rival broadcaster BSkyB. As previously reported, Sky has withdrawn its basic channels from Virgin's cable TV network after the cable firm refused to meet its price demands for carrying the services.

Virgin Media said in a statement yesterday: "Following Sky's withdrawal of its basic channels from Virgin Media's TV service, 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".

Sky reportedly turned down the offer of independent arbitration because Virgin want to include a renegotiation of a recently signed deal regarding the inclusion of Virgin's Flextech channels on the Sky Network in any arbitrated talks. Sky pushed Virgin down considerably on the price it pays for the Flextech channels in that contract renewal, which is why Virgin were hoping they could push down the price they pay Sky for their channels.

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