Cable Forum - View Single Post - Acquisition by Sky of Virgin Media Television

**Chris** · 04-06-2010, 17:37

I suspect what's at the root of this is VM's belief that linear broadcast TV is becoming obsolete, and in 9 years, when the carriage fees for Sky's content comes up for renewal, VM will rely far less on the delivery of linear broadcast TV as part of its product offering.

They will be hoping that they can sell cable as first and foremost a VOD service, with broadcast channels there in the mix for those who still want them. If VM can show it doesn't really need to buy Sky's channels anywhere near as much as Sky needs to sell them, then they will still have leverage at the negotiating table.

Personally I think that's a pretty huge gamble. But I guess we will just have to wait and see how it pans out.

04-06-2010, 17:37	#89
Chris Trollsplatter Cable Forum Team Join Date: Jun 2003 Location: North of Watford Services: Humane elimination of all common Internet pests Posts: 38,567	Re: Acquisition by Sky of Virgin Media Television I suspect what's at the root of this is VM's belief that linear broadcast TV is becoming obsolete, and in 9 years, when the carriage fees for Sky's content comes up for renewal, VM will rely far less on the delivery of linear broadcast TV as part of its product offering. They will be hoping that they can sell cable as first and foremost a VOD service, with broadcast channels there in the mix for those who still want them. If VM can show it doesn't really need to buy Sky's channels anywhere near as much as Sky needs to sell them, then they will still have leverage at the negotiating table. Personally I think that's a pretty huge gamble. But I guess we will just have to wait and see how it pans out.