Showing posts with label Virgin Media. Show all posts
Showing posts with label Virgin Media. Show all posts

Friday, 26 June 2009

If you can't beat them, whinge like Virgin Media

The title effectively sums up the arguments by the cable/adsl media industry against Sky Television and in particular Sky Sports.

I don't have Sky myself, but have done in the past. I find it very expensive and a luxury - but the service is very good. The content is the best of all the possible providers. This is because Sky is the best run business with the most capital available to it.

Contrast Virgin, the old NTL business nearly destroyed by Lord Carter in a former life. This itself was an amalgamation of two failing cable networks (Telewest and Cable & Wireless).

Even with the advantages of cable broadband, these legacy companies just can't cut it. And new entrant BT is just as bad. Expensive and long contracts for poor content; deliver the truly awful firm that is BT - perhaps soon to expire under the weight of pensions obligations in any event.

So what does the competition do; they whinge, they have their insiders like Lord Carter, they go on a regulatory offensive.

Now proposals are out to force Sky to demand less for its expensively assembled content. This in itself is market abuse. it is not Sky's fault the competition has been rubbish for over 15 years.

Sky costs you nothing if you don't have. No taxpayers are harmed in its creation (well, OK, they do pay very little corporate tax).
This new approach just shows the Government does not understand markets still; there are winners and losers in all functioning markets.