Branson vs Murdock.. Branson fires fresh salvo in row with Sky

[Joanne98]

Branson fires fresh salvo in row with Sky
http://observer.guardian.co.uk/business/story/0,,2025818,00.html

Battle for pay-TV dominance escalates as Virgin boss threatens Murdoch empire with legal action

Richard Wachman, City editor
Sunday March 4, 2007
The Observer

Richard Branson and his cable company Virgin Media last night launched a scathing attack on satellite broadcaster BSkyB and the Murdoch media empire that runs it.
' is trying to strangle us at birth,' he said. 'It's using its dominant market position to push up prices and I think it is something the authorities should look at. Sky wants to extort a fortune from us and we are not having it.'

Branson was speaking after some Sky channels were pulled from the Virgin network when the companies failed to agree on how much Virgin should pay for being allowed to broadcast Sky One, Sky Two, Sky Sports News and Sky News.


The giants are engaged in a bitter fight for internet and pay-TV customers - Sky is well ahead with 8.4 million, while Virgin has 3.3 million.
Sky hit back at the Branson onslaught. A spokesman said: 'The contention that we were seeking to double prices is not correct. Our offer was generous in that we wanted to make more channels available, as well as additional services, such as video-on-demand.' Asked why Sky had rejected Virgin's offer of arbitration to settle the dispute, the spokesman said: 'This is a question that management should decide, not arbitrators.'

Virgin Media was created last autumn after Branson sold his mobile phone business to cable operator NTL-Telewest and took a stake in the rebranded operation.

The latest row is part of a long-running feud between Branson and BSkyB, where James Murdoch is chief executive and his father Rupert is chairman. Hostilities erupted at the end of last year, when Virgin Media planned a bid for ITV which was thwarted when BSkyB took an 18 per cent blocking stake. Murdoch's move is being looked at by regulator Ofcom. But Branson is now considering legal action over the pricing dispute which means Virgin customers can no longer view the Sky basic package.

Branson was in fighting mood, saying: 'We are going to settle this to our satisfaction; we have a great legal team at the company; we are going to win.'
http://observer.guardian.co.uk/business/story/0,,2025818,00.html

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