Virgin Media’s 4 million pay-TV customers face losing hit ITV shows including Coronation Street and Love Island as a longstanding dispute with the broadcaster comes to a head.
ITV has written to Virgin Media warning that it could remove its channels as soon as this weekend if an agreement cannot be reached.
Virgin Media and ITV have been in protracted talks over a range of issues including the carriage of ITV, ITV2, ITV3, ITV4, video-on-demand rights and guarantees of the prominence of its programming, as cable viewers increasingly watch programmes on demand from Netflix, Amazon and broadcasters’ own streaming services.
ITV threatened Virgin Media with a channel blackout last year but delayed the decision for the arrival of chief executive Carolyn McCall, who joined from easyJet in January. To date McCall has taken a more collaborative approach in negotiations, which are understood to be at an advanced stage.
However, Virgin Media’s decision on Sunday to remove UKTV’s 10 TV channels – a mix of free-to-air and pay stations including Dave and Gold – appears to have provided an opportunity for ITV to pressure the cable operator.
Sources with knowledge of the letter said it contains an ultimatum, or threat, that ITV could remove its channels if a final deal is not signed. In the event of a blackout it is unclear if the broadcaster would be allowed to take down its flagship channel, home to shows including X Factor, as it is a public service channel that under broadcasting regulations must be supplied to rivals.
However, channels such as ITV2, ITV3, ITV4 and their high-definition variants could potentially be taken off air.
Sources said that despite the letter Virgin Media and ITV’s talks have not broken down and while they have been protracted they are now close to the point of a deal. One source described the letter as “opportunistic” but not likely to result in a breakdown in relations as has happened with UKTV.
A spokesman for ITV declined to comment on the talks and the letter.
A Virgin Media spokesman said: “All ITV channels remain live on Virgin TV and we have no intention of removing them.”
On Thursday, the acrimonious row between Virgin Media and UKTV deepened as it emerged that Virgin Media’s pay-TV customers face permanently losing the UKTV channels, because the cable company is looking to auction off the channel slots to rivals.
Virgin Media has replaced UKTV’s portfolio with a range of channels offering shows including Suits, Designated Survivor, Britain’s Next Top Model and Deadliest Catch as a supposedly temporary measure in the hope the two sides can reach an agreement and resume broadcasting. However, with both companies so far failing to enter meaningful renegotiations, Virgin Media has begun the process of preparing to find new channels that could permanently replace those supplied by UKTV.
Virgin Media has sent a letter to broadcasters and media companies asking for expressions of interest in taking over the channel slots, with responses due by Friday.
UKTV occupies 23 channel slots – including high definition and plus one-hour versions of its 10-channel portfolio – a number of which are in coveted, valuable positions high on the electronic programme guide used by viewers. In total, the channel slots are likely to be worth tens of millions of pounds.
Last year Channel 4 bid millions of pounds to successfully secure a high-rated channel slot, 106, for E4. Theoretically, as UKTV is out of contract, it could bid for the slots that are up for grabs but this is unlikely while the dispute with Virgin Media rumbles on.
TV regulator Ofcom has received more than 200 complaints about the Virgin Media-UKTV issue.
“We are concerned about the impact of this dispute on viewers, and we will be meeting both parties as a priority to see whether it can be resolved,” said a spokeswoman.
