Cable Forum - Virgin Media considering launching budget brand

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- Virgin Media News Discussion (https://www.cableforum.uk/board/forumdisplay.php?f=10)

- - Virgin Media considering launching budget brand (https://www.cableforum.uk/board/showthread.php?t=33704108)

MrIca

19-12-2016 10:12

Re: Virgin Media considering launching budget brand

Quote:

Originally Posted by vm_tech (Post 35875598)

Obviously these are just my opinions, but people would just leave VM for the new company, which could potentially cost more money as im assuming the secondary brand would use different equipment to differentiate the 2 companies, so said customer rather than just having a config file sent down will need account closed, new account created billing set up etc equipment swapped. There would be plenty of ways to prevent people just downgrading for the sake of it, e.g. They will lose they bundle discounts etc. That's just my 2 pence worth I'm sure if it is true the accountants have looked at their spreadsheets and decided it's viable

But don't you think if they're willing to switch to the cheaper VM brand that they would have just gone to another budget DSL based brand anyway?

Kabaal

19-12-2016 11:14

Re: Virgin Media considering launching budget brand

I can't see many customers downgrading to something really slow, not in this age of Netflix and online streaming. Not when a new customer can already get 50mb for only £18 a month and there are always offers on for the various FTTC providers, especially with cashback, that work out similar. There is no lack of cheap broadband options.

How many people are realistically going to want 10mb? I'd guess only a small percentage of people who live alone.

Stuart

19-12-2016 11:44

Re: Virgin Media considering launching budget brand

Quote:

Originally Posted by Mr K (Post 35875275)

It might backfire if a lot of VMs current customers downgrade to save some money. Doubtless it will only be available to 'new' customers. Once speeds went above 20MB it all became a bit of a silly numbers game.

I've never worked for VM, but from what I've been told, they actually take a loss on the higher tiers, subsidising them from the profits from the lower tiers, purely because more people buy the lower tiers.

---------- Post added at 11:44 ---------- Previous post was at 11:35 ----------

Quote:

Originally Posted by vm_tech (Post 35875309)

I'm not sure why a new brand would be needed, surely just a new tier would do it? I presume it would need to be a standalone BB offering as the V6 requires 100mb I believe

Depends. If they are trying to position Virgin Media as a premium brand, having the bulk of their customers on a low tier will detract from that premium brand. This is why (for instance), Panasonic have two different brands. Panasonic for the low end and consumer stuff, Technics for the high end consumer and studio stuff (although, oddly, Panasonic do a well recieved range of professional video cameras under the Panasonic name). Similarly, TEAC have two brands, TEAC (for the low end and consumer stuff) an Tascam (for the high end consumer and studio stuff).

Taf	19-12-2016 12:23

Re: Virgin Media considering launching budget brand

I can forsee many customers opting to downgrade as "austerity" bites even more. Increased Poll Tax and utility bills coming early next year, way over official inflation levels.

So having package available for them makes commercial sense.

1andrew1

19-12-2016 12:38

Re: Virgin Media considering launching budget brand

Quote:

Originally Posted by vm_tech (Post 35875309)

I'm not sure why a new brand would be needed, surely just a new tier would do it? I presume it would need to be a standalone BB offering as the V6 requires 100mb I believe

If it's a separate brand they can offer different service levels eg the way that Sky's Now TV offering is entirely online. You don't get VW selling its Bentley cars in its Skoda garages! Yet it owns all three brands which appeal to different markets and it offers different levels of support.

spiderplant

19-12-2016 12:39

Re: Virgin Media considering launching budget brand

Quote:

Originally Posted by Kabaal (Post 35876530)

How many people are realistically going to want 10mb?

About half the country? Personally I'd be delighted to be able to get 10Mbps.

JPAC	19-12-2016 13:36

Re: Virgin Media considering launching budget brand

I'd have a third of 77Mb/s for a third of the price. :)

Inactive Digital

19-12-2016 14:03

Re: Virgin Media considering launching budget brand

Perhaps a budget brand would include the data usage caps that Virgin quietly introduced earlier this year, before dropping very soon afterwards. That might reduce the number of customers downgrading, but would put then at a disadvantage versus the other budget brands that offer unlimited usage.

1andrew1

19-12-2016 14:31

Re: Virgin Media considering launching budget brand

Quote:

Originally Posted by Inactive Digital (Post 35876565)

Perhaps a budget brand would include the data usage caps that Virgin quietly introduced earlier this year, before dropping very soon afterwards. That might reduce the number of customers downgrading, but would put then at a disadvantage versus the other budget brands that offer unlimited usage.

I expect a budget brand would be differentiated by service and speed but not usage caps.

RichardCoulter

20-12-2016 12:23

Re: Virgin Media considering launching budget brand

It's called 'Project Prosecco'!

Kushan

20-12-2016 13:14

Re: Virgin Media considering launching budget brand

Virgin has always touted itself as a premium product with "no limits" (Even when there were limits). They've started doing packages with download caps, but they're not very heavily advertised or marketed - I wouldn't be surprised if those are the precursor to the budget brand.

Inactive Digital

29-06-2017 12:13

Re: Virgin Media considering launching budget brand

ISPreview are reporting Virgin are going to pilot re-introducing 50mb broadband as a budget broadband service next week:
http://www.ispreview.co.uk/index.php...et-option.html

Gavin78

29-06-2017 14:01

Re: Virgin Media considering launching budget brand

I think it's a good move, what they might lose on more expensive packages they'll gain back from new customers coming onto the smaller ones.

jb66	29-06-2017 14:02

Re: Virgin Media considering launching budget brand

Quote:

Originally Posted by Gavin78 (Post 35905594)

I think it's a good move, what they might lose on more expensive packages they'll gain back from new customers coming onto the smaller ones.

What hub will they use? Wonder if they will use the crappy sh1

BenMcr

29-06-2017 14:06

Re: Virgin Media considering launching budget brand

Quote:

Originally Posted by Inactive Digital (Post 35905575)

ISPreview are reporting Virgin are going to pilot re-introducing 50mb broadband as a budget broadband service next week:
http://www.ispreview.co.uk/index.php...et-option.html

Quote:

Originally Posted by Gavin78 (Post 35905594)

I think it's a good move, what they might lose on more expensive packages they'll gain back from new customers coming onto the smaller ones.

Quote:

Originally Posted by jb66 (Post 35905595)

What hub will they use? Wonder if they will use the crappy sh1

From the site:

Quote:

Interestingly we also understand that the new budget package is not related to last year’s so-called “Project Prosecco,” which suggests that Virgin Media may also have something else planned for the budget market

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