Virgin set to drop channels in UKTV row

The BBC has sold on-demand rights to Top Gear to Netflix

Customers of Liberty Global’s UK cable company Virgin Media could be without an array of channels including male-skewing Dave and comedy network Gold as a dispute over VoD rights escalates.

Virgin Media is preparing to pull 10 UKTV channels, including Alibi, Good Food and Home, after failing to agree a new carriage deal with the BBC- and Discovery-owned operator.

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 and Horses, instead selling them to streamers such as Netflix. Virgin’s current UKTV deal expires at midnight on July 21.

David Bouchier, Virgin Media’s chief digital entertainment officer, said the BBC’s failure to grant UKTV digital rights with its TV shows “leaves it somewhat stranded as a linear dinosaur in an on-demand modern world.”

“Part of a commitment to audiences has to be allowing them to watch what they want, when they want, and that also means being able to watch those programmes on-demand,” Bouchier added.

“From US studios to small programme makers, that is how it is done. The BBC puts UKTV in a very difficult position and we have been unable to come to terms and will replace the channels.”

UKTV, which said Virgin Media had requested a significant cut in fees, said it had already offered to provide additional value including an increased range of on-demand catch-up and boxsets, enhanced distribution rights and an additional channel, Gold HD.

Darren Childs, UKTV’s CEO, added: “We want to continue to provide our channels to Virgin Media but the huge cut in fees that Virgin has requested doesn’t reflect the value we bring to customers.

“UKTV’s channels account for over a quarter of pay entertainment channel viewing within Virgin Media’s basic subscription pack, while our on-demand viewing has grown by over a third in the past year. The money we receive from platforms helps to pay for our record investment in high-quality programmes, which we increased to more than £150m [US$195m] in the last year.”

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

If a deal is not agreed Virgin said it would replace UKTV nets with channels offering shows including Suits, Designated Survivor, Britain’s Next Top Model, Deadliest Catch and sports programming.