Tiscali set to go Sky high
Friday, June 29th, 2007Virgin’s main Broadband rival jumps into bed with Sky, Ofcom gives Sky’s Premier League Freeview plans the yellow card.
Mutterings of talks between Sky and IPTV, Phone and Broadband provider Tiscali have materialised into a deal which sees the satellite broadcaster selling the rights to the channels it pulled from the cable operator’s platform to Virgin Media’s main broadband and TV rival Tiscali.
Tiscali will now be able to add the basic Sky channels – Sky One, Sky Two and Sky Sports News – to its IPTV platform for the same amount of coin that Virgin Media refused to cough up back in February. This deal will see Tiscali being able to broadcast Lost, 24 and Prison Break to its broadband consumer base, which may swell with disaffected Virgin customers.
Tiscali are currently the third biggest provider of broadband services in the UK, behind Virgin who are second. Tiscali are currently poised to annex the broadband and phone services of Pipex, which will see their ranks increase in size by half a million, applying even more pressure on Virgin.
Sky have also been quick to scoff at the prospect of Virgin 1, suggesting that the amount of money that cable operators have spent on the up and coming channel is far beyond the amount of money that Sky were asking for. “Time will tell whether Virgin Media’s customers view this as a good choice,” said Sky’s chief operating officer Mike Darcey of the forthcoming channel.
The move is probably more beneficial to Sky than Tiscali as it is detrimental to Virgin’s court argument; announcement of the deal comes just after it was revealed earlier this week that Sky received a blow from the regulators; Ofcom have decided to review Sky’s plans to launch a range of subscription channels on Freeview – something which would not only require existing Freeview customers to fork out for a new box, but pay for the channels as well, which pretty much defeats the whole point of the Freeview ethos.
As a result of the joint petition between BT, Setanta, Top-Up TV and Virgin, Ofcom have put a hold on the launch of Sky pay-per-view channels on Freeview until further notice. Sky had intended to replace its free channels on Freeview with subscription channels, presumably including Sky Sports One, in August, in time for the beginning of the new Premier League season, which means it will miss out on potential customer revenue from a consumer base represented by the most popular digital TV choice in the UK.

