Sky has pulled its basic package including Sky One from Virgin Media customers at Midnight last night as it threatened to do.
The news means that Virgin customers will be unable to get shows like 24, Lost and The Simpsons.
However the company has left the new formed Virgin Media customers with sport and movies channels.
Virgin, who has been publicly kicking up a fuss about the negotiations has said that it will "focus on providing its TV customers with the most comprehensive range of programming available".
Virgin Media has accused BSkyB of raising its prices too much, but BSkyB has said the higher fees are justified.
"Consumers have my whole-hearted assurance that Virgin Media will not allow this dispute to prevent us from giving them the freshest and most exciting TV service in the UK", Richard Branson said.
According to Virgin media, throughout the dispute, it has made continued efforts to reach an agreement with Sky.
Commenting on the dispute, Steve Burch, said: "We're disappointed but not surprised by this outcome: nothing Sky have said or done in the course of the negotiation indicates they had the slightest interest in doing a commercially viable deal. Their action here is consistent with their plans to withdraw their free channels from Freeview and, in our view, reflects their desire to limit consumer choice".
"The money saved due to Sky's withdrawal of its basic channels will be used to build on a series of major programming acquisitions over recent months",
the company said in a statement.