Virgin/Sky spat to benefit Tiscali February 28, 2007 Ben Camm-Jones
Tiscali is to launch a combined TV-on-demand and broadband service tomorrow and stands to benefit from the current dispute between Virgin Media and Sky.
Tiscali TV is a 'triple-play' package, offering 2Mbps broadband with no download limits, free weekend landline calls and 30 digital TV channels with another 100 hours of on-demand content available, all for £19.99 per month. With Sky threatening to withdraw certain channels from Virgin Media's offerings, some analysts think the timing couldn't be better.
"Tiscali is one of the cleverest marketers in the broadband market, and I expect that it will take a bit of the Freeview market share and possibly pick up some disaffected Sky and Virgin Media customers who don't want to pay for premium content," said Jason Lloyd, head of broadband at Moneysupermarket.com.
Tiscali customers will also have the £11 monthly line rental charges covered. However, despite looking like a good deal in principle, Tiscali's offering is not without its limitations, according to Lloyd.
"With Tiscali customers get 30 digital TV channels and free weekend landline calls, whereas with Sky they can get 68 digital TV channels and free landline calls anytime for £6 a month more. It seems a small price to pay for a whole deal more," Lloyd said.
Sky and Virgin Media have been in dispute over Virgin Media's reluctance to pay more to Sky to be able to offer certain Sky channels including Sky One to its customers.
"Throughout its history, Virgin has challenged the attempts of dominant corporations to manipulate markets, stifle competition and dictate consumer choice... Sky's behavior is a heavy handed and anti-competitive response to that challenge and consumer choice has been reduced as a result," said Steve Burch, president of Virgin Media.
According to reports, Virgin Media has today offered to enter arbitration talks in a bid to resolve the matter.
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