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Digital TV providers clash over Setanta

Thursday, June 25th 2009
Digital TV providers clash over Setanta
Two of the UK's leading digital and cable TV providers have clashed over the reason Setanta fell into administration.
Virgin Media and Sky have taken separate sides over the reason that sports broadcaster Setanta dropped into administration earlier this week.

According to Virgin Media chief executive Neil Berkett, the issue was a "symptom of a failed market" and regulatory body Ofcom should intervene by creating more regulations to help the British subscription TV market.

However, the point of view has been criticised by Mike Darcey, chief operating officer of Sky, who claimed other reasons were behind the company's downfall.

"Setanta ran into difficulties because it tried to grow too fast and lost control of costs," he explained.

"It took on more than £1 billion of sports rights and its private equity backers refused to honour those commitments."

Virgin Media recently revealed it was in talks with ESPN, the company that has bought rights to coverage previously expected to be shown on Setanta, to see if it will still be able to broadcast the programming in the future.

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