The spat between Virgin and Sky over cable carriage of Sky basic channels has generated much blogging, mostly supportive of Virgin, although neither party appears to be gaining from the ‘zero sum game’ dispute
With 84,000 net pay-TV additions in 2006, Sogecable resumed subscriber growth, but we expect this pace to decline in 2007 unless Sogecable re-positions on basic and expands distribution from satellite to cable and DSL
Virgin Media’s Q4 results were again mixed – increasing competition is continuing to have a significant effect on net additions but, as yet, most higher ARPU customers are staying put, permitting modest revenue growth
Hostilities between Sky and Virgin have intensified during the course of cable’s re-launch, Sky’s announcement of its pay-DTT plans, and bilateral negotiations over channel carriage fee payments on the satellite and cable platforms