Virgin Media calls on EE to withdraw BT Sport offer

Virgin Media accused BT of breaching a contract covering wholesale access to the BT Sport package, after the UK incumbent began offering free access to subscribers of its recently acquired mobile operator, EE.

 

The Liberty Global-owned UK media company argued that its original deal with BT includes a pledge by the incumbent not to offer access to its sports content service for less than the wholesale price agreed by Virgin Media. The deal dates back to the founding of BT Sport in 2013, the Telegraph reported.

 

Virgin Media currently pays BT some £120 million (€138 million/$157 million) per year to access the BT Sport channel, which forms part of Virgin’s TV offering in the UK, the Telegraph revealed.

 

The media company reacted after BT recently began offering EE subscribers a free six-month subscription to its sports channel, which they can access through a smartphone app. Subscribers to new 4GEE Max plans also get the service for free.

 

Virgin Media argued that BT has in essence agreed a fresh wholesale deal with another company, and called on EE to halt the offer to its subscribers.

 

For BT, the move makes sense in terms of building customer loyalty following its £12.5 billion acquisition of EE earlier this year. The Telegraph noted that BT is also seeking to prepare its customers for the introduction of more fees on its TV service, which it plans to introduce in 2017.

 

Sport is a key feather in the cap for BT’s multimedia ambitions, but is also a costly investment. For example, the operator in 2015 agreed to pay £960 million to show 42 English Premier League football matches through to 2018.

 

Indeed, the very cost of establishing its sports channel is what led BT to agree its original wholesale deal with Virgin Media. The Telegraph explained that being able to guarantee access to Virgin Media’s customers was a key element in BT’s push to convince investors that the high cost of acquiring sports rights was worthwhile.