Sky spat 'bad for customers'
The country's leading consumer body has laid into warring media companies Virgin Media and BSkyB, branding their dispute "bad news for consumers".
Virgin customers have lost access to Sky's basic channels such as Sky One and Sky News because the companies could not agree on what Virgin should pay for them.
Screens went blank yesterday following a bitter public row between the companies and since then both sides have maintained the war of words, while many Virgin customers have been left angry or confused about losing access to favourite shows.
"The fallout from the dispute between Virgin Media and BSkyB is bad news for consumers," said Philip Cullum, the National Consumer Council's deputy chief executive.
"Over three million Virgin Media customers have been left high and dry. They have lost some of the most popular channels, they aren't getting a discount, and they've had little notice."
The NCC called on Virgin Media to confirm whether its customers could cancel their subscriptions without penalty.
"Our concern is that this dispute may expose a more fundamental flaw in the digital television market, and the extent to which it is competitive for consumers," Mr Cullum added.
The NCC, which is mainly funded by the Department of Trade and Industry to safeguard consumers' interests, has powers to bring "supercomplaints" to regulators under the Enterprise Act.
Mr Cullum said it was examining the case "as a matter of urgency" and was considering such a move, which could bring the row to the attention of the Office of Fair Trading or Competition Commission.
"If necessary, we will refer this market to the regulator using our power to bring a 'supercomplaint'," he said.
"In the meantime, we urge the two companies to put consumers first, by reaching a speedy solution and being crystal clear about customers' rights."
Virgin said it welcomed the NCC's statement and described yesterday as a "bad day" for consumers.
"We've always been open to discussions with Sky to find a settlement that would allow us to continue providing their basic channels to consumers on fair and reasonable terms," Vigin said.
"We have also made clear that we are willing to submit this dispute, along with other associated issues, to binding arbitration by a mutually acceptable expert.
"Furthermore, we agree that this dispute is one example of deep-rooted structural flaws in the way the UK's pay-TV market operates. We would welcome a thorough investigation of the causes of this and possible solution by the relevant regulatory authorities and would cooperate fully with any such enquiry.
The company said it would make a more detailed response to the NCC statement later today.
Chris Tryhorn
Friday March 2, 2007
Guardian Unlimited
© Guardian News and Media Limited 2007
The country's leading consumer body has laid into warring media companies Virgin Media and BSkyB, branding their dispute "bad news for consumers".
Virgin customers have lost access to Sky's basic channels such as Sky One and Sky News because the companies could not agree on what Virgin should pay for them.
Screens went blank yesterday following a bitter public row between the companies and since then both sides have maintained the war of words, while many Virgin customers have been left angry or confused about losing access to favourite shows.
"The fallout from the dispute between Virgin Media and BSkyB is bad news for consumers," said Philip Cullum, the National Consumer Council's deputy chief executive.
"Over three million Virgin Media customers have been left high and dry. They have lost some of the most popular channels, they aren't getting a discount, and they've had little notice."
The NCC called on Virgin Media to confirm whether its customers could cancel their subscriptions without penalty.
"Our concern is that this dispute may expose a more fundamental flaw in the digital television market, and the extent to which it is competitive for consumers," Mr Cullum added.
The NCC, which is mainly funded by the Department of Trade and Industry to safeguard consumers' interests, has powers to bring "supercomplaints" to regulators under the Enterprise Act.
Mr Cullum said it was examining the case "as a matter of urgency" and was considering such a move, which could bring the row to the attention of the Office of Fair Trading or Competition Commission.
"If necessary, we will refer this market to the regulator using our power to bring a 'supercomplaint'," he said.
"In the meantime, we urge the two companies to put consumers first, by reaching a speedy solution and being crystal clear about customers' rights."
Virgin said it welcomed the NCC's statement and described yesterday as a "bad day" for consumers.
"We've always been open to discussions with Sky to find a settlement that would allow us to continue providing their basic channels to consumers on fair and reasonable terms," Vigin said.
"We have also made clear that we are willing to submit this dispute, along with other associated issues, to binding arbitration by a mutually acceptable expert.
"Furthermore, we agree that this dispute is one example of deep-rooted structural flaws in the way the UK's pay-TV market operates. We would welcome a thorough investigation of the causes of this and possible solution by the relevant regulatory authorities and would cooperate fully with any such enquiry.
The company said it would make a more detailed response to the NCC statement later today.
Chris Tryhorn
Friday March 2, 2007
Guardian Unlimited
© Guardian News and Media Limited 2007