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Originally Posted by vincerooney
Why did Virgin sell their only channels therefore losing their only card in negotiations ?
Who knows. Possible incompetence. But then again I'm incompetent in life so who am I to talk
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I would not call it incompetence and we do know why it was done.
The channels were sold to Sky in return to enable a long term agreement to carry Sky channels and get Sky HD channels for the first time.
http://www.theguardian.com/media/201...media-channels
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As part of the deal, Virgin Media has secured new long-term carriage agreements for its cable TV network for wholesale distribution of Sky's basic subscription channels, including Sky1, Sky News and Sky Arts, and the services it is selling.
The new carriage deals are understood to be for up to nine years. Previously the carriage deals tended to be struck every three years.
For an incremental wholesale fee, Virgin Media will also for the first time have the option of carrying any of Sky's basic HD channels, Sky Sports HD 1 and Sky Sports HD 2, and all Sky Movies HD channels.
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If the timescale is correct then in return for selling the channels, we still have 3 years left to run on the agreement. Which seems to be a good deal to me.