UKTV nets go dark on Virgin

On-demand rights to shows like Top Gear are sold by the BBC

UKTV networks including Dave and Gold have gone dark for around four million people in the UK as the multi-channel operator’s dispute with cable company Virgin Media over VoD rights escalates.

Liberty Global-owned Virgin Media has dropped 10 UKTV channels after failing to agree a new carriage deal with the BBC- and Discovery-owned firm.

The dispute centres on VoD rights for shows from the BBC, which are allowed to air on the linear networks. However, the BBC holds back VoD rights to shows such as Top Gear and Only Fools & Horses, instead selling them to streamers such as Netflix. Virgin’s previous UKTV deal expired at midnight on July 21.

Virgin has said UKTV is charging “inflated” fees, while the channels’ owner has argued that the price cuts proposed by the cable company are “drastic.”

The carriage dispute affects free-to-air networks Dave, Drama, Home, Really and Yesterday, while pay channels Gold, Alibi, Eden, Good Food and W have also gone dark.

Virgin has started airing other nets such as Paramount Network as a result of the blackout.

David Bouchier, Virgin Media’s chief digital entertainment officer, claimed UKTV had initially said it could continue airing the channels but then withdrew the offer at the “11th hour… and that is why we have the chaos today.”

Bouchier said his company has “been in extensive discussions with UKTV but we have not been able to reach an agreement which reflects the reality of how people are watching television in the 21st century.”

He added that UKTV was “insisting on holding back its channels, like Dave, which are freely available over the air and online, unless we pay inflated sums of money for its paid channels like Gold.”

UKTV CEO Darren Childs said he “completely” understood customers’ frustrations but added that his company needed a “fair price to support our growing investment in programmes.”

In a statement, the broadcast group said: “Contrary to some reports, UKTV supplied thousands of hours of on-demand programming to the platform, including its biggest shows such as Taskmaster and Most Haunted. UKTV also offered to significantly increase the volume; offering thousands of extra catch-up hours and hundreds of boxset hours to Virgin Media.”

BBC Studios, which holds a 50% stake in UKTV with Discovery, added: “This is clearly an attempt to negotiate through the press. We are fully supportive of the approach taken by UKTV management, who are leading discussions.”

Earlier this year, UKTV appointed its first original drama commissioner. It has since been ramping up its drama activity, recently co-commissioning Flack for its W network with US channel Pop.