OFT waves through Sky's Virgin TV slurp
Final final clearance
BSkyB has received final clearance from the OFT for the acquisition of Living TV Group, which once upon a time was called Virgin Media Television.
Sky now owns LIVING, LIVINGit, Challenge, Challenge Jackpot, Bravo, Bravo 2 and Virgin1, which will be renamed in due course.
Sky is to stump up £55 million to Virgin Media to finalise the acquisition. It has already paid VM £105m.
The disposal will let Virgin Media concentrate on its bid to become a pure play telecoms company.
Admittedly, it also own a half share - with the BBC - in UK TV, owner of 10 digital TV channels, including Dave and Gold, worth at least £350m and up for sale, according to the Sunday Times.
This deal cuts Sky's costs - They no longer have to pay Virgin for those channels, and come content negociation time they'll have Virgin over a barrel with no channels of their own to play/bargain with.
TBH I think this was a very stupid move on Virgin's part.
"and Virgin1, which will be renamed in due course."
It's already been renamed as "channel one"
Good business plan from virgin:
1: you won't let us have your 'one' channel, we'll create our own.
2: you like our 'one' channel and would like to buy it: OK then.
Two answers for Chad H.
You seem confused.
1. This story is about a broadcaster buying in some more content. Not a provider buying another provider. Assuming you know the difference - why are you worried/concerned about this?
2. I flagged up the issue of content companies controlling technical standards ten years ago in the CPRM FAQ. For the same reason, we've reflected concerns about Project Canvas, which is ... content companies controlling technical standards.
How does this business model work?
Create monopoly, charge people whatever you like, eradicate all competition, maintain monopoly, continue to charge people whatever you like.
Just what this country needs
Less diversity in TV media ownership; greater entrenchment of the Murdoch monopoly.