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Q&A

Throughout our negotiations with Sky, we tried to tell you as much as we legally could about what was happening to your channels.

We wanted you to have your say, too. That's why we set up our Fair Play forum where you could give us your views, good and bad.

We had an amazing response – over 200,000 visits to the site, with 30,000 people taking the time to tell us how they feel.

Lots of questions came up. So we wanted to answer those as openly and honestly as we could.

Read on to find out more.

So what's the real story behind the negotiations?

There's been a lot of talk in the papers about what's been going on. But we think you have the right to know the facts behind the headlines.

We've been negotiating hard to try and make sure you don't lose any channels from your service. We even offered Sky a solution – to get an independent expert to decide a fair and reasonable price for Sky's basic channels. Sky refused. They demanded that we pay in excess of £48 million – almost double what we were previously paying. That's despite the number of people watching these channels falling by 20% over the last three years.

When we refused their demands, they withdrew their channels.

This is in addition to Sky forcing Virgin Media to accept an 85% reduction in the price it pays for Virgin Media's TV channels – like Living and Bravo. That's despite these channels increasing in popularity by 7%.

We're simply not prepared to let our customers be the victims of Sky's market dominance. That's why we've taken steps to restore their basic channels, like Sky One and Sky News, for a fair price.

So on 5th March, we advised Sky that if an agreement isn't reached within 30 days, we'll pursue action through the High Court. This will include seeking a fair price for Virgin Media to supply Sky's basic channels, as well as a fair price for the channels that Virgin Media supplies to Sky.

So why are Sky offering me the chance to keep watching these channels at an extra cost?

You may have heard that during our negotiations, Sky offered to sell their basic channels directly to Virgin Media customers. Although this may sound like a compromise, the effect would be an increase in Sky's dominance. It would mean that Sky could charge premium rates, like you pay for Sky Sports and Sky Movies, for its basic channels. That's not only bad for customers, but the TV industry in general. Great news for Sky, but bad news for competition – and ultimately, bad news for consumers.

Will there be any more negotiations?

Well, we want to get on with giving you the best service possible – bringing you great shows and the value you deserve. So rather than getting caught up in a tit-for-tat battle with Sky, we've decided to go through the proper channels and report them to Ofcom, who deal with companies acting unfairly or illegally in the TV industry. We're also giving Sky the chance to re-enter negotiations fairly with an independent mediator. That way, we can concentrate on what's really important – our customers.

Can I cancel my contract?

At Virgin Media we're all about being honest and doing the right thing.

So, even if we've done everything we can to persuade our TV customers to stay, and they still want to disconnect their TV service, then we're not going to hold them to their 12 month contract. We'll allow them to cancel at any time up to the end of April although they need to give us 30 days notice. This commitment will not impact our contractual rights to recover any outstanding arrears owing at the time of cancellation.

Will I pay less for my TV package from now on?

Our free TV package (Size: M) will still be absolutely free if you take our phone service. Our other TV packages will continue to cost the same. And since more of you have told us you'd rather have the money back as improvements to your TV service, than money off your monthly cost, that's exactly what we're going to do. In fact, we've started already.

We've just launched our Virgin Central channel which already lets you watch shows like Nip/Tuck, The OC, Grey's Anatomy and Spooks for free. And we'll be adding even more channels with top shows, too.

We're also doubling the amount of stuff you can watch on demand – going from 2,700 hours to 6,000 by the end of the year. Right now, our on demand service gives you access to a vast library of shows including Ugly Betty, Desperate Housewives and C.S.I., as well as old favourites like Shameless, and award-winning documentaries like Planet Earth. Next month we'll be bringing you The Sopranos, Six Feet Under, Curb Your Enthusiasm and more.

And later this year we'll be bringing you all 3 series of Lost, so you can watch them back to back – without the ads.

Am I going to lose Sky Movies and Sky Sports?

No. If you've got Sky Movies or Sky Sports, you can sit back and relax. These services are not affected in any way.

You're free to keep enjoying the films you fancy. And if you want even more choice, you can take your pick from over 500 movies available on demand through FilmFlex on your Virgin TV service.

Footie mad? Or gearing up for the Rugby World Cup? You can still catch every ball, on Sky Sports, with Virgin Media.

Why didn't we get advanced warning?

Throughout our negotiations with Sky, we tried to tell you as much as we legally could about what was happening to your channels. We were doing all we could to keep them for you - right up until the deadline that Sky had imposed. And as soon as it became apparent that Sky were not going to accept our proposals, we let as many of our customers know as possible, through their TVs, by phone and in the national press.

Why stick with Virgin Media?

When we launched a month ago, we promised to put the power of the entertainment industry back in the hands of UK consumers, giving them the service they deserve and the value they'd expect.

What we offer is simple.

• TV that lets you call the shots, with a huge library of programmes and films that start and stop when you say so.
• That's over 500 films and 100s of music videos available on demand, instantly
• Plus, we're adding even more. More channels. More movies. More TV on demand. Twice as much in fact – going from 2,700 to 6,000 hours by the end of this year
• Right now, you can watch Nip/Tuck, The O.C. and Grey's Anatomy, as well as old favourites like Shameless, and award-winning documentaries like Planet Earth - instantly. Next month we'll be bringing you The Sopranos, Six Feet Under, Curb Your Enthusiasm. And later this year we'll be bringing you all 3 series of Lost, so you can watch them back to back – without the ads.

All this plus:

• An award-winning broadband on cable service that's 4 times faster than Sky's service. Plus, it's reassuringly reliable and lets you download as much music and movies as you like.
• A phone service that fits around your life
• A very different mobile service that's flexible and fun

Is Sky cheaper than Virgin Media?

Lately Sky offered customers the chance to get 3 services for £26. But hit customers with an extra £11 monthly line rental, making it 3 for £37.

At Virgin Media, there are no nasty surprises and no hidden costs. We believe in being honest and upfront. So the price you see, is the price you pay. When we say you can get 3 services for £30, £30 is all you'll pay.

Fancy adding a V+ set-top box to watch things in HD? Unlike Sky, we won't ask you to fork out up to £300 upfront for the privilege. With Virgin Media, there are no upfront costs for our V+ HD box. You just pay a monthly charge and a one off installation fee.

Will Virgin Media be able to match Sky for HD content?

Have a browse through our on demand service and you'll see there's always a selection of HD films ready to watch in stunning High Definition. Right now, you can catch Pirates of the Caribbean: Dead Man's Chest and Kill Bill: Volume 1 in all their glory on FilmFlex. There are TV shows too, like Blue Planet, Bleak House and Walking with Beasts. And we're working to bring our customers even more.

All you need is our V+ set-top box and a HD ready TV. And the beauty of watching HD television on Virgin Media is you don't have to fork out loads upfront to buy the box.