Quote:
Originally Posted by Ignitionnet
BSkyB are happy, Virgin Media are happy, more importantly the investors of both are happy. It's a deal that benefits both companies. Virgin get interactive and HD content along with getting shot of some of their unwanted content division as they push on towards being a pure distributor of content, VMTV gets the expertise, experience and production resources of Sky, Sky increase their portfolio of channels and, most relevant to them, get Virgin 1's Freeview slot.
Be under no allusion, Sky really wanted the Virgin 1 Freeview slot 
I struggle to see a downside beyond paranoid people thinking that Sky are going to go out of their way to screw over Virgin Media and in the process get the Competition Commission slapping them down and probably forcing structural separation on them as the kind of abuses of their vertical integration required to do so would certainly get some most unwanted attention. |
Yes at this point everybody a winner but here is the issue what happens when sky lose churn to virgin media.
They wont take that lying down and there real danger this could happen to sky. Especially if people was so bothered about red button HD sky content to move to Sky for these features. In sense this much a dangerous move for sky in someways if they lost these as bargaining tool to get sky subscribers.
If you take both platforms sky benefits are small compared HD/red button but VM has the vod service. This now basiclly mean sky could lose subscribers.
If the next five years there customer base shrinks to any significant levels there next spat will be swift and VM will be in a real mess. There lies why its dangerous for virgin media allowing Sky control of content. VM taking a risk allowing a rival the power to remove significant british viewing content. Also putting alot of faith that OFCOM and other regulation bodies to keep SKY playing ball. These organisations did not stop sky removing channels before. If sky lose 3-4 million to virgin I cant see sky doing nothing and wounded company with sky reputation is a dangerous animal.
This is my fear its like a trogan horse bearing gifts.
Like someone mentioned and its a good point they dont care about the channels just the freeview slot and I suspect for there picnic.
If they get picnic out and ruin freeview making it worthless then they win same time they control VM content weaken they position and Digital has only one platform SKY.
This the big picture in sky mind but people dont see it sadly.
Its not about now its about future domination of digital television.