The broadcaster says the deal “underlines Sky’s commitment to Sky Mobile and is the first step in Sky’s fixed and wireless convergence strategy, enabling Sky to keep customers connected to more of what they love wherever they are.”
Backed by leading Hollywood studios Warner Bros, Paramount Pictures, Viacom, Sony Pictures, and 20th Century Fox, as well as the Lavazza family, the service offers digital downloads and rentals of TV boxsets and big screen movies.
The broadcaster, whose portfolio includes W, Alibi, and GOLD, claims Virgin Media requested “a significant cut” in the fees that pays for the channels and catch-up content despite it offering “to provide additional value to Virgin Media and its customers”.
According to the regulator, the total number of streaming subscriptions reached 15.4 million in the first quarter of 2018, with the number of pay TV subscriptions standing at 15.1 million.
The company entered the bidding for control of Sky back in April with a £22bn bid, higher than the £18bn offered by Rupert Murdoch’s 21st Century Fox for the 61% of Sky it doesn’t already own.
BT and Virgin Media have struck a supply deal which will allow the cable firm to offer its rival’s 4K UHD sports channel. The deal means Virgin Media customers with a Full House or VIP bundle who also have one of the firm’s new V6 set top boxes will get the channels at no extra cost.
21st Century Fox has boosted its offer for Sky to £24.5bn in the wake of rival Comcast’s £22bn offer. The latest offer is up significantly on Fox’s original £18bn bid and shows the company is firmly committed to acquiring the 61% of Sky it doesn’t already own.