Gordon's Republic

Gordon Macmillan

It's playing hard ball, but ultimately a huge mistake by Sky. It is another example of showing itself to be a bully in the market place using strong-arm tactics to get its own way.

It has already derailed a Virgin Media takeover of ITV by snapping up a stake in its terrestrial rival (for which it could still face an Ofcom probe) and now it seems to think it can win the multichannel war by depriving Virgin Customers. That, or it really does think it should get more money.

Sky claims this morning that it has increased investment in its basic channels by 68% over the last five years to around £200m a year and, as a consequence, the most-watched pay TV programmes in cable households are on the Sky basic channels.

"We are simply seeking a fair price so that we can continue to provide the great shows and choice that Virgin Media customers value."

It hopes that by denying Virgin Media customers of services like Sky One and with it hit shows such as 'Lost', '24', 'The Simpsons' and 'Battlestar Galactica', people will switch suppliers.

It is apparently set to capitalise on this with an advertising campaign this week reminding Virgin Media customers what they are missing out on.

I've no doubt it will hit home as Sky's US imports are some of the best on television, but are they really the draw they once were?

The answer to this question is yes and no. I think yes for a small group of people who will go to lengths to watch it, but for the majority I think they will probably find themselves getting along just fine without it.

For the small group who really can't live without maybe some of them will dump Virgin and move to Sky, but for the others they can just watch it on the web where it isn’t even all that illegal anymore.

There are lots of sites now offering entire episodes of just aired US TV shows free to watch and you don't even have to download it.

The Guardian helpfully ran a nice big feature about this on Saturday. Telling people of the wonders of sites like Alluc.org, which lists the places you can go and watch these shows. You don't need Sky.

"I'm breaking up with my DVD rental service. We've had good times, we've had sad times, even a stressful week where I had to sign two forms detailing the location of the post box used to return Seinfeld, but it's over. I've found Alluc.org.

"Here, in pleasing slate tones, are the links to every television programme you could ever hope to see (Lost, Ugly Betty, Dragon's Den), many you'll go out of your way to avoid (Red Dwarf US, Coupling, Joey) and entire seasons of shows yet to air in this country - many featuring characters from Friends. Enjoy Chandler as Matt Albie in Studio 60 on the Sunset Strip - could he be more stressed about writing a sketch comedy show?"

Admittedly the quality is not great, but really it’s good enough, and besides shows are coming to DVD faster than ever. You can even buy the box set when it’s out for the glossy finish.

I've already tried some of these services because I'm impatient and really can't wait, and I know many others who have done so as well.

My main TV addiction is 'Battlestar Galactica, which I have already mentioned on this blog before (why does no one listen?), which is the best thing on TV. A mix between 'Alien', 'The West Wing' and 'Blade Runner', with quality parenting like that you can't really go wrong.

I digress, slightly, I might have several years ago thought about dumping Virgin or Telewest as it was, but not anymore.

I've got a Virgin Plus digital video recorder on the way and really for the time I spend watching TV there is plenty to see.

I stopped watching 'Lost' after it moved to Sky, but that wouldn't even be a problem. Virgin has signed 'Lost' as a download. So even for 'Lost' fans who are not all the technologically au fait with the PC they can still watch that show (why you would, I'm not sure – nothing happens).

UPDATE:  I was actually quite surprised that Alistair Darling, Secretary of State for Trade and Industry, has asked Ofcom to conduct an investigation into Sky's stake in ITV. I fully expected this to come to nothing. Maybe it still will, but this will put Sky in the spotlight and that can only be a good thing.

Here's the full text of the announcement:

"In accordance with Section 44A of the Enterprise Act, Secretary of State for Trade and Industry, Alistair Darling, has today asked Ofcom to conduct an initial investigation into British Sky Broadcasting Group's acquisition of a 17.9% stake in ITV plc. This means Ofcom must provide advice to him by 27 April on whether the case raises public interest concerns about the number of different owners of media enterprises.

Alistair Darling said "I am today asking Ofcom to conduct an initial investigation into the public interest issues that may be raised by this transaction and to report back to me".

He went on to say "I wish to emphasise that this decision only means there will be an initial investigation by Ofcom and is without prejudice to any decisions I take subsequently on whether a fuller investigation by the Competition Commission may be necessary".

The Office of Fair Trading (OFT) announced on 12 January 2007 its provisional view that a relevant merger situation may have been created for the purposes of the Enterprise Act 2002 as a result of British Sky Broadcasting Group acquiring material influence over ITV plc. The OFT will also report to the Secretary of State on 27 April on this and other competition issues raised by the transaction.