Quote:
Originally Posted by newbie1001
So why did Virgin take Sky 1 back then if it wasn't in their best interests to do so. They could have said no instead of making it a big deal when they did get it back.
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At the beginning of the row between Virgin and Sky, Sky was paying next to nothing for Virgin's Flextech channels (UKTV etc), whilst demanding top dollar for the Sky Basics. At the end of the row, the whole lot had been re-negotiated, effectively valuing Flextech and Sky Basics as being worth
exactly the same.
The outcome was a major triumph for Virgin and a major humiliation for Sky, which was always going to have to climb down - after all, James Murdoch himself is a great believer in rampant capitalism, he more than anyone else should have been reminding his underlings that a product is only ever worth what the market is prepared to pay for it, not what you demand for it.