Today we’re announcing that we’ve agreed to buy Virgin Media Television (VMtv) - the owner of channels including Living, Bravo and Challenge - from Virgin Media for up to £160 million.
This move will enhance our content business and expand our portfolio of basic pay TV channels. Financially, it means we will no longer have to pay fees to Virgin Media to carry these channels on our platform and we will benefit from increased wholesale and advertising revenues.
In addition, we have signed new long-term carriage agreements, which means our basic channels will continue to be distributed on Virgin Media’s cable TV service. Our basic HD channels and a selection of premium HD channels will become available from Virgin Media for the first time. Virgin Media will also make a range of Sky content available through its on-demand services.
Jeremy Darroch explained the thinking behind the deal: “VMtv is an attractive investment opportunity which complements our existing content business and delivers strategic and financial benefits.”
“We’ll look forward to welcoming VMtv into Sky so that our enlarged channel line-up becomes even more valuable to our customers over time," he said.
Regulatory approval is required before any of this can happen, so there will be no immediate changes. The regulatory process has begun and is likely to take several months.
Details in this article were correct at time of publishing: 04/06/2010 11:39
This move will enhance our content business and expand our portfolio of basic pay TV channels. Financially, it means we will no longer have to pay fees to Virgin Media to carry these channels on our platform and we will benefit from increased wholesale and advertising revenues.
In addition, we have signed new long-term carriage agreements, which means our basic channels will continue to be distributed on Virgin Media’s cable TV service. Our basic HD channels and a selection of premium HD channels will become available from Virgin Media for the first time. Virgin Media will also make a range of Sky content available through its on-demand services.
Jeremy Darroch explained the thinking behind the deal: “VMtv is an attractive investment opportunity which complements our existing content business and delivers strategic and financial benefits.”
“We’ll look forward to welcoming VMtv into Sky so that our enlarged channel line-up becomes even more valuable to our customers over time," he said.
Regulatory approval is required before any of this can happen, so there will be no immediate changes. The regulatory process has begun and is likely to take several months.
Details in this article were correct at time of publishing: 04/06/2010 11:39
