BSkyB has decided to cut the amount it pays Virgin Media for carriage of the Flextech channels on Sky Digital.

It is understood that Flextech will only get around 10p per Sky subscriber under the new deal. It was previously getting 40p for these channels, which include Bravo, Living TV, Trouble and Challenge.

The 30p cut in revenues from each subscriber means that the revenues Virgin Media gets from its carriage deal could drop by anywhere up to £30m a year.

This is the latest of a long-running spat between the two companies. Last month we reported how BSkyB were threatening to pull all their channels off cable if a better carriage deal could not be agreed.

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