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Only 100 Customers/Day Leaving VM
according to Sunday Telegraph article only 100 customers/day are leaving VM. See link below.
http://www.telegraph.co.uk/money/mai...cnvirgin04.xml |
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"Darroch is in no hurry to see his channels back on Virgin Media. He said: "In the short term there is a financial cost and we'll have to bear the consequences of that. They have to be willing to pay a fair price." Precisely more or less as I had thought. Given what steve burch is reported as saying the figure could be near close to 200 per day without retention offers. This is going to wallop VM too. |
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OK if 100 are leaving everyday how many are joining everyday? That is the important question.
Churn has always been the key in this business model. |
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Churn is an issue, however I do not see myself leaving sky to join VM minus the channels they have lost, so I would guess more are leaving than joining. Whatever figures companies quote are questionable anyway. |
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Well i just talked my sister and her husband into switching to Virgin Media from Sky, to the VIP pack, as they would be saving 20 pounds month if they did it online. From what i have heard a lot of Sky customers are joining Virgin Media...
They dont care that they wouldnt have Sky One, and they are lost fans! |
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If you're not on a retention deal now looks like the time! |
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They did say that initially. But I think that after consulting their briefs they have had a change of heart :erm: |
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thats almost 1000 customers in 1 week, thats quite a lot of customers... i wonder how long till more customers leave. Will it go up or down is the question, and how many people will sign up now that Sky One is gone?
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or 50k customers a year - probably a sustainable loss.
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Remember as well, the newspapers have to have a story to sell...
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"No more than 100 a day" :shocked:
I know that Sky One is a poor effort these days but even I'm surprised at this low figure. It's going to take Sky a while to reach its target of 150k, no wonder their sounding disappointed and "hope this would rise over time". |
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I seriously doubt the figures of 100 per day bearing in mind that the reports are that the telephone lines are exceptionally busy.. what are people calling for.. to say "thanks for replacing my first run TV series with more repeats"?
Don't forget, customer retention is busy discounting subscriptions very heavily which will make a serious dent in profitability. Good. Perhaps Virgin Media will learn not to be so arrogant when it sees the mess it has created. |
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I don't think that VM alone take all the blame for this fiasco, do you? (or wouldn't it suit your agenda to accept it takes two to tango?). |
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Doesn't really work with the 'We don't need Sky' line that VM are merrily peddling though. Need, no, but clearly it's taking its' toll on both sides. |
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I thought I was joining a forum for debating issues relating to virgin media. If any one is as unhappy as the above post surely the answer is to go to another provider. |
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Though I notice Mick is a bit on the warpath and we have some banned people and amended threads so maybe things will settle down faster. It would also help if new members would stop starting brand new threads about the issue and just post to the pretty high number of Sky v VM type threads already started.;) Off to do some ironing.:waving: |
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the offers on retentions are good enough from my experience to keep virgin and have sky at same time
but that means virgin isn't saving as much as it thought was offered the 3 for 30 plus the family pack for £20 but i dont want even more boxes so opted for BB at £10 |
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In my case I've not left but dropped the Tv and phone and kept the BB. How many are doing this, I moved only my TV to Sky.
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This is quite funny, shows i was 100$ right? 20% not even close and won't be, i thought it would be nearer 5% and it's not even going to be that. This will be a big success for Virgin if it stays at 100s/1000s and not 10s/100s of thousand. Round One to Virgin deffinitely.
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Sorted out the phone line problem yet? |
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100 customers a day are leaving, but the other 95% of them are being saved with retention deals according to that link.
So I make that 9500 customers a day ringing up and asking to cancel. In a month that's 285k customers. |
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Credible in what way? I'm going from the figures Virgin Media have provided.
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100 x 20 (5% x 20 = 100% of calls per day) = 2000 calls per day, 1900 staying, 100 leaving. 2000 calls per day x 30 (days in month) = 60k customers ringing, not 285k btw, the first couple of days will always be busiest, so 60k in a month is probably worst possible case. |
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Or it could be customers ringing up, just to see if they can get a better deal at the moment.
I supose if any time is a good time to get a deal on your package then this is. Cant fault anyone for doing this. |
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Any desertions are likely to be high in the early days especially if it relates to a Sky 1 Issue. It may be lower than normal given the retention deals and problems in getting through. Any one who is really likely to leave (rather than saying it or just seeking a deal) will do so by the end of the month. if the current trend continues it could be between 5 and 10 thousand which is a lot less than sky need to justify their decision to their shareholders and the media It could go one of three ways a) Sky decide that they want to try and kill off competition totally now which is unlikely due to problems related to competition authorities and what they might want is more than is currently at risk ( remember the govt is already worried that the digital switchover is likely to cause significant problems with poor reception and in some areas potential loss of reception as they take down the old masts and replace with new facilites b) Sky go running back to the table and offer a better deal ( probably just as unlikely given the bad blood of the last two weeks) or C) The NCC issue their supercomplaint. The resolution is arbitration with sky hoping that the arbitration deals only with the sky basics package rather than full renegotiation wanted by VM. Likely to result in the deal VM probably wanted at first a little increase for more channels and potentially HD Services but both sides can claim victory!:tu: :tu: :tu: :tu: :tu: :tu: :tu: :tu: :tu: |
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First off who are they lost to. Not necessarly sky. Secondly, virgin media may recruit more than 100 new custmers per day so a net gain. Is the comment ; 100/day or 100 more per day than is normal at this time of year.. Sky may have a churn which far exceeds 100/day. I think this data my be very difficult to extract from Sky. Some one here my be able to advise us of the churn Sky have at this time of year. Would be intersting to know |
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VM lost 37,000+ customers in Q4 2006 (source: http://news.bbc.co.uk/1/hi/business/6405549.stm). That's 406 customers per day.
To say that the loss rate is down to 100 per day now after the Sky basics fiasco frankly doesn't seem to make sense. In Q4 2006, VM made just £9.2m on revenues of £1018.6m (source http://library.corporate-ir.net/libr...ssRelease.pdf). That's a profit margin of 0.9% which is extremely poor. Virgin will save just £30m annually on the loss of Sky basics, but you can see how fragile their bottom line is. Despite this, Virgin Media's share price is holding up fairly well (see http://finance.google.com/finance?q=VMED). However, they are listed in New York and I do wonder just how well their investors know the UK market. Keep an eye on that share price. I have a feeling that it's going to make a sharp turn downwards quite soon. |
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Do us a favour and run along to murdoch will you and ask him when you are getting your Sky+ box with 3 tuners and HD support all in one, that you dont need to pay for, that is replaced for free if it breaks. Also ask him when you are getting your 20mb broadband and vod that works like a dvd player. ---------- Post added at 19:25 ---------- Previous post was at 19:23 ---------- Quote:
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vms, you missed a bit out......
"OCF in the fourth quarter has been negatively impacted by £19.1m of implementation costs relating to the merger with Telewest (Q3-06: £14.2m), £5.0m of rebrand expenses (Q3-06: £0m) and £2.3m of legal and professional costs related to M&A activity (Q3-06: £0m)." So that would be another £26.4m of profits that were offset as merger costs. ps - love your caveat at the bottom of your web page - "Note to lawyers: I am very well aware of WIPO regulations and trademark laws so please don't send any pointless threatening letters." |
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Customers Lost in Quarter 37,000 Revenue Generating Units (Customers Services Purchased) TV 38,500 Increase BB 78,100 Increase ( against a backdrop of everyone else giving it away with a can of coke!) Telephone Phone 64,500 Down The movement in lost customer is in the phone line element primarily and probably made up of a lot of people shifting phone lines back to BT or using Skype The issue in this case is TV subscriber so make your point relevant |
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Its amazing how all these fan boys turn up to rant instead of posting helpful advice and information, Help of course is still available from the long term members who are here to help and not just Rant on and on and on. It's starting to get boring now and very very repetitive. So for you fan boys of Sky please say something helpful or sod off and rant somewhere else where they have a lower IQ on the same level to that of your posts |
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Sorry but if you subscribed to Virgin for this one channel then that actually makes you pretty sad, given the amount of channels that are available, Sky one did not make up 100% of the subscription amount charged to each customer, so why you think you are entitled to a discount is beyond me, and what do you mean they are making extra profit out of you, all because they removed one channel? Pathetic And the truth of the fact is, that the removal of one channel does not constitute a huge change in the services you are recieving. If virgin suddenly decided to drop the tv service say, then this is a change for which you can canel without any penalty payment. Oh and did i forget to mention i covered this in my contract law part of my course which appears to have got me a job as a lawyer :) |
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Is there a device close to you designed to convey people over water ?. |
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Back on topic anyway, it's all irrelevant, they aren't going to lose enough customers now. I bet if they thought this was going to be the outcome they woulda dropped the channels ages ago. I was beginning to think a deal mighta been possible, but now Virgin would offer less money than they offered to Sky 2 weeks ago, a deal now looks very unlikely. |
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it all depends on a number of things including how accurate the information given to the article is that could be on top of the usual amount as well couldnt it
from my experience with retentions yesterday they are pretty desperate to keep you what ever the cost i was offered some excellent deals which i would have snapped up if sky 1 was there lol they did manage to keep me for BB at £10 per month edit ( i wonder if i would count as lost or not lol ) they were also trying to push the idea that if i kept them on it was likely we would get the other channels back as according to the very nice sounding girl they were still trying to get them back but after today wit two kids moaning they couldnt see their shows we have sky coming Wednesday also bear in mind a lot were put off by the statements that they couldnt get out of contract a few of my friends are off to phone now after reading the latest on that |
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perhaps it's only 100 a day due to the limit of staff available to take calls - last time I rang it took 30 mins to get through to retentions. that was before the sky one 'loss'.
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Took me 7 minutes on the Monday 26th Feb; V+ box delivered Wednesday 28th Feb.
Phone call took about 10-15 minutes to agree a deal - if that was an average, 4 calls an hour, 28 calls per CSR per day, they must only have 4 staff taking calls......... :erm: |
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Can people just ask to speak to retentions? Or is there 2 different internal queues? One for CS and one for Retentions? |
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took me 45 to get through
sigh |
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ntl only netted about 22000 net customers last year
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Fork Me |
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Let me explain it to you in simple terms - Virgin Media has already admitted that the removal of the Sky basics package adversely impacts their TV-only offering, because it has conceded that these subscribers can opt out of their contract without penalty. This is an admission that the TV service they provide is no longer as advertised, and for almost all subscribers the TV component is either the largest part of their subscription or forms a substantial part of it. Therefore, those people who subscribe to a package where the TV component forms a major part should also be treated in the same way btw LostintheNW, the Judge or the magistrates sit at the *front* of the court. Try to remember that when you're making a statement. ---------- Post added at 21:50 ---------- Previous post was at 21:50 ---------- Quote:
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Contract lawyers wouldn't necessarily go to magistrates court....
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I wonder what Sky's current churn rate is???
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My personal estimate is 300,000 subscribers (10%) quitting over this which would leave Sky with about 8m subscribers, Virgin Media with perhaps 3m subscribers... ..unless of course there's a resolution to this silly dispute, but I think there's far too much testosterone involved. |
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I am one of those considering cancelling. However, I haven't done it yet for two reasons: 1) I want to see if things will improve. 2) I can't get time off work until April to actually be in for installation of Sky, pickup of Virgin stuff etc. I would expect more people to wait a bit than to leave instantly. Quote:
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Fork Me |
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You seem to be one of those people who thaink that what you say is gospel giving no reason for your views at all. Rather than a throwaway comment, perhaps you would care to say WHY you think I am way off? Fork Me |
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My answer 'that is so way off' to VirginMediaSucks is because if only 100 are leaving a day then the numbers of people leaving is going to have to increase very rapidly, by the time 300k of people have left it will be so far in the future it will have nothing to do with the Virgin/Sky spat. |
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You have to understand that after all said and done in the TV dispute, people are still joining the best Broadband Provider in the UK.
My mum did a couple of weeks ago (same as me, yet it worked faster.) Sky Basic isn't the be all and end all. TV isn't the be all and end all. Broadband is the biggest puller... and this isnt affected by the tv fall out. |
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Fortunately there is more to life than just tv.... |
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Virgin Media are claiming that just 0.003% of their subscriber base is cancelling per day. Does that make sense? I really don't think so. ---------- Post added at 22:17 ---------- Previous post was at 22:16 ---------- Quote:
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I agree i suspect it might be higher than 100 a day, but i doubt they would lie to the extend of thousands, thats kind of hard to hide come their next Qs Report and incredibly irresponsible! Maybe we will be talking about that in a few months! heh |
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With Sky One being so bad these days, a shadow of its former self, I don't think it will be a case of absence makes the heart grow fonder, more a case of absence makes the heart forget. |
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I gave the reasons, you have yet to counter them. Quote:
Fork Me ---------- Post added at 22:36 ---------- Previous post was at 22:30 ---------- Quote:
I'll miss Sky Sports News on a Saturday afternoon more than anything. Quote:
It may be teething problems, it is early days yet. But I have had cable TV since the Nynex days, and so far, I'm singularly unimpressed with Virgin Media. Fork Me |
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I'd be interested to know, if you think this doesn't have any statistical significance, how long the cancellations relating to Sky One will continue for (i don't mean dribs and drabs, i mean solid cancellations)? Do you really believe people will just keep calling up on a regular basis to cancel because of this for months on end? |
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As I said previously, many people cannot cancel instantly for practical reasons. I won't cancel Virgin until such a time that I can actually be indoors during the day for a replacement to be installed. That's April. I'm sure there are many others in a similar boat. Fork me |
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Don't forget you have to cancel by the end of this month (and still have 30 days notice), otherwise things might take a tine for the worse.
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Fork Me |
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that due to them giving it to me for £10 a month is all i will be having from virgin ---------- Post added at 01:43 ---------- Previous post was at 01:39 ---------- Quote:
they may talk tough but they would loose hands down in court on it not being a major change but hey i expect most who want to leave will have done so by then any how personally i still hope they sort it or get told to sort it out before then as then i can cancel sky and stick with what i have got ( but may ask for them to guarantee sky being there this time and better notice if not so i can leave with out loosing viewing time ) |
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If I were a VM customer right now, it would be impossible for me to bring myself to remove the Video On Demand service you guy's have. I saw an up-to-date list the other day of what is available, and I am SO jealous it's unbelievable. If i weren't moving house in a few months I would order VM TV right now. |
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i like fixed bills |
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I do not believe that only 100 customers per day are leaving VM. Let's not forget that the "cry wolf", hot air (baloon) specialist is running the PR of VM.
On top of that VM has to pay the price of the permanent heavy discounts that most of us got. In my case, 30 quid or so per month. Branson has been doing a super job for 20 days, give him time, a second bankruptcy for NTL is around the corner. |
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But by giving those discounts they are still getting an income . IMO better to have a customer paying something than a customer leaving and paying nothing its math.
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I am pleased you got a good discount, and couldn't help but notice your gratitude in response to it. :rolleyes: Nice sig, btw - who are Virgin/NTL? re the "bankruptcy just round the corner", did you actually read the 4th quarter results, or is it just wishful thinking on your (and Sky's) behalf? "Total revenue in the fourth quarter increased to £1,081.6 million (Q3 2006: £1,024.9m) due to revenue growth in all segments. Year on year revenue growth in the fourth quarter was £597.0 million (Q4 2005: £484.6m), due to the merger with Telewest and the acquisition of Virgin Mobile." |
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Most losses reported by business are not actually losses at all just an income less than projected income figures.
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well they wont break even if said clients pay nothing and leave will they
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The solution to the Sky One problem was simple: Put the "hor air" Branson on every TV program (including Richard and Judy) to say that Murdoch wants to squeeze an extra 50p per customer per month for his SKY One. And then let the VM customers decide: Keep Sky one and pay 50p extra, or get rid of Sky one and pay 50 less. Simple and Clean. Now, VM has created so many unhappy customers for no reason. Old stupid NTL, it will never change. |
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In business if you let a company dictate terms your onto a loser. You have to make a stand or you will pay later. Remember Sky got VM channels cheap but then did the dirty. You can not let companies set presidents like this
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You really need to move to Sky and leave us alone ! ---------- Post added at 10:33 ---------- Previous post was at 10:29 ---------- Quote:
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You can hide anything in figures and statistics. |
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Dont mention the war ! :D ---------- Post added at 11:02 ---------- Previous post was at 10:58 ---------- Quote:
In the article yesterday it said 100 a day were leaving, steve burch is supposed to have claimed that they were saving around 95% with retention offers, was never very clever at maths but that to me sounds like around 200 a day calling to cancel? ---------- Post added at 11:09 ---------- Previous post was at 11:02 ---------- Quote:
I suggest that you look up on contract law. It could indeed be seen as VM breaking the contract. If you look up working lunch from friday just gone a professor in law gave his feelings on the matter, I think he should be regarded as being able to state fact? :) ---------- Post added at 11:12 ---------- Previous post was at 11:09 ---------- Quote:
I would ask for your money back :) ---------- Post added at 11:16 ---------- Previous post was at 11:12 ---------- Quote:
I would guess less than VM at the moment. ---------- Post added at 11:18 ---------- Previous post was at 11:16 ---------- Quote:
Ofcourse VM are going to think it does not represent a change. Banks think it quite legitimate to charge you £25 for a letter, until they are threatened with the court system. ---------- Post added at 11:28 ---------- Previous post was at 11:18 ---------- Quote:
Seeing the up to date list is one thing, having a working VOD system is another. |
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