The launch of Sir Richard Branson’s first Virgin-branded television channel never promised to be an understated affair. As 200 guests enjoyed fairground rides and chart-topping bands in the grounds of the entrepreneur’s Oxfordshire retreat, the inclusion of a flight simulator among the attractions appeared prescient.

“We are talking with broadcasters about a series surrounding Virgin Galactic’s push into space,” Sir Richard said. “I might get involved in appearing in that.”

Those plans appear some time away, however. Virgin 1, a male-skewed entertainment channel, offering US imports and attention-grabbing factual shows, is Sir Richard’s new front in his bruising battle with BSkyB, the satellite broadcaster 39.1 per cent owned by News Corporation, parent company of The Times. It will be on cable, Freeview and satellite.

About 40,000 subscribers have left Virgin Media since BSkyB pulled its basic channels, including Sky One and Sky News, from its rival in a row over carriage fees. Sir Richard is still smarting over BSkyB’s 17.9 per cent stake in ITV which scuppered his £5 billion takeover bid.

The businessman insisted that the £40 million budget for Virgin 1, which will be launched on Monday, was a better use of resources than coming to a settlement with Sky. He said: “If you have a gun held to your head and give in the first time around, it is likely you will get a gun to your head a second time. Sometimes you have to draw a line in the sand.”

Sir Richard said that he hoped the competition authorities would settle the dispute with BSkyB in his favour. As for ITV, he said “Watch this space”, when questioned if a future bid for the broadcaster was a possibility.

He expected audiences for Virgin Media channels to exceed those of Sky One within four years — adding “I don’t watch it” in a final swipe at his competitor. He believes that the subscribers who left Virgin Media were more upset at the loss of Sky’s sports news channel and that he will plug that gap with the launch of his own sports service in partnership with Setanta.

A proposed sale of Virgin Media, which has a £4 billion market value, was postponed during recent upheaval on the stock market. Sir Richard said that he may keep his 10 per cent stake in the company, should it be sold, and would not expect any future owner to remove the Virgin branding.

Virgin 1 is an attempt to lure customers with a free-to-air offering before hitting them with a hard sell for Virgin Media’s broadband and television subscriber packages. With Freeview passing nine million viewers, Sir Richard said that the time is now right to complete a long cherished entry into TV.

Launch highlights include The Riches, an Emmy-nominated US drama starring Eddie Izzard and Minnie Driver, and The Sarah Connor Chronicles, a television spin-off from the Terminator films.

The channel will rely on hours of Star Trek and Seinfeld repeats in its opening year but Sir Richard said, with a wry smile, that British Airways, his arch rival in the transatlantic wars, had won the battle to become the first advertiser on the service. Virgin Media expects the new channel, aimed at men aged 25 to 54, to be among the top ten multi-channels by 2012.

The Virgin boss insisted that the company would overcome long-term scepticism about the customer service offered by Britain’s cable operators. The new channel aims to attract viewers from BBC3, ITV2 and E4 as well as Sky One but its limited commissioning budget means it faces a struggle to find a niche.

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