Broadcast: Virgin Media poised to sign sports news deal

Story from Broadcastnow.

Virgin Media is set to seal a deal to create a sports news channel within the next few weeks, with Setanta Sports the most likely partner.

The cable operator has been in talks about launching its own channel since the Sky basic channels - including Sky Sports News - were removed from its platform on 1 March, after the two companies failed in their carriage deal negotiations.

VM chief executive officer, content division Malcolm Wall said a deal was imminent.

He would not comment on whether Virgin Media would require Sky Sports News should the cable company and Sky settle their carriage dispute, but said VM was "too far into the process not to go ahead with our own sports news channel".

Broadcast revealed earlier this year that VM was in high level talks with emerging Irish broadcaster Setanta Sports.

However, VM is thought to have also sounded out alternative sport specialists.

Meanwhile, Wall said VM would be adding more drama and kids content to its on-demand offering.

He said research showed that users did not think there was enough on the platform and that the company was in talks over deals with ITV and indies which have the rights to their drama productions.

Wall stressed his wish to put as much educational content on the platform as possible, mirroring what is available in the US.

"I want the full national curriculum on our VoD [video-on-demand] offering. The fact we are doubling the content to 6,000 hours helps us get things right in terms of trial and error."

Wall also predicted that the number of linear channels on digital platforms will "tail off". He believes only the bigger channels will survive due to advertising migrating online and the emergence of VoD. "Ad revenues are already moving online," he said.

"The experience in the US shows that ad revenues follow eyeballs so any reduction in TV ad revenue has had a greater impact on smaller channels. There will also be a shift from linear to VoD because there is more personalisation - people watching content when they want."