Sky buys Virgin TV: who will benefit the most?

VIRGIN Media customers bemoaning the lack of HD channels available on the company's television service can now rejoice as an announcement has confirmed that Sky has reached a deal to buy the TV arm of Virgin Media.

This means that Virgin Media customers will be able to access some Sky HD channels, including Sky Sports HD and Sky Movies HD.

Virgin customers have been promised further investment in the company's broadband network.

As yet there's been no confirmation as to how much Virgin TV customers will have to pay for the new HD channels but that extra cost may come as a bit of a shock since Virgin Media customers are currently receiving some, albeit not many, HD channels for free.

Figures and statements

Sky paid £160 million to buy out Virgin Media TV (VMtv).

A statement from Virgin Media's CEO Neil Burkett confirmed that the sale will give the company space and time to concentrate on its broadband service:

"The sale of our channels business has generated substantial value...it will allow us to focus closely on our strategy of exploiting Virgin Media's super-fast connectivity to offer our customers a range of the very best content through a highly versatile next generation entertainment application."

Sky has also released a statement on its recent acquisition saying, "VMtv is an attractive investment opportunity which complements our existing content business and delivers strategic and financial benefits."

This new found closeness will come as a surprise to some; it wasn't so long ago that Virgin and Sky were at each others' throats over paying for channels.

Who will benefit the most?

Whilst the initial acquisition by Sky may seem like good news for Sky customers it's actually Virgin Media subscribers who will benefit initially.

One thing that was putting some customers off Virgin TV was the lack of HD channels available.

In the coming months, Virgin customers should be able to access the new channels for a price and advances in Virgin's broadband infrastructure could also prove to be a huge benefit for Virgin Media broadband customers.

Many are predicting that Virgin will also be looking to reinvest some of the £160 million gained from its sale to Sky into its online streaming services.

Sky customers will gain Virgin channels including Living, Bravo, Challenge and Virgin One.

Let's just hope that the two companies don't put their previous spats behind them just yet, it's already becoming nigh-on impossible to choose Sky or Virgin.

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