Sky/Virgin negotations appear to have failed

After days of wrangling, negotiations between Sky and Virgin Media over Virgin's carriage of Sky's basic channels appear to have broken down, according to reports.

BSkyB chief executive James Murdoch says he has failed in bringing Virgin Media chief executive Steve Burch back to the negotiating table.

A Sky statement said Murdoch called Burch and Virgin Media chairman Jim Mooney inviting them to reach a deal ahead of tonight's deadline. However, Virgin Media rejected the latest offer while confirming it did not intend to make a new offer of its own.

The Sky statement also said that Burch and Mooney sought to impose a new condition on future discussion, to reopen the existing contractual agreement for the distribution of Virgin Media's channels on Sky's platform.

Sky said: "During the course of the day, Sky has reiterated its proposal for Sky to retail its basic channels directly to Virgin Media customers if Virgin Media will provide access to its closed platform." Though Virgin's Burch has already dismissed the likelihood of this happening.

Elsewhere, website Satellitetvtalk.info has published a transcript of it says is an extract of an interview with Richard Branson by BBC's Andrew Neil. Due to be broadcast this weekend, Branson says he will buy the rights for programmes currently on Sky and set up it own channels to rival Sky One.

Branson said: "Sky One has a couple of wallpaper bits of programming which, which our viewers could do without briefly whilst we put it on to - whilst we then go and buy the rights for where they can just press a button and get it at any time. I mean for instance Lost, which is one of the programmes we’ve just picked up and we can offer, you know, all our viewers from September and we’re negotiating for 24 and I’m sure we’ll get some rights."

The interview will be broadcast as part of StraightTalk with Andrew Neil on BBC News 24 on Saturday and Sunday.