Chris

Sky's system is not completely open. Sky's system more or less consists of an EPG and an optional encryption deal.

Broadcasters deal with Astra or whoever else is available to get their channel on air, then they pay Sky to include the channel in the Sky EPG. If the broadcaster wants to make money from subscriptions, then it also signs up to Sky's encryption service and gets a place within one of the entertainment packs. But encryption is not necessary; the only thing that's required in order to get a decent level of penetration in the UK is the EPG slot. Broadcasters are happy with this because their satellite broadcast is available to every home.

Virgin's network is not analagous to a satellite broadcast. It is available only to cabled homes. This alters the balance of power - Virgin is more like a magazine editor, paying freelancers for the copy he needs to fill his pages.