Sky opts for direct action

Sky says it will sell its channels direct to Virgin Media customers if negotiations with the cable company fail before tonight's deadline.

A Sky spokesman said: "At no cost or risk to Virgin, we'll retail our basic channels directly to cable customers on the Virgin Media network to ensure that no one misses out on the TV they enjoy."

Though Virgin Media boss Steve Burch has rejected this idea saying it controls access to its cable network and making it clear that Sky will have to deal with them to offer such a service.

Burch said: "It's a bold faced attempt to take our network from us. It's a ludicrous proposal and they know it's ludicrous. We are not going to let them steal our network, they're far more dominant than they should be. It's a ridiculous request."

He called on Sky to do a deal today or to enter into arbitration - during which Virgin would keep Sky's channels on air - an offer Sky has rejected.