Quote:
Originally Posted by Incognitas
Yes but 84% said they would stay.. How much is that in retained revenue?
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That's not really a clever argument, not up to your usual standard at all
If we were talking about a couple of percent leaving Virgin, it wouldn't be so bad, but a potential 1/2 million subscribers dropping off the books in a short space of time could be very damaging for cashflow. Bear in mind that these people are not just subscibing to Sky's basic channels, they are possibly also subscibing to high value products like internet, phone, VOD and premium channels. Direct revenue sources for Virgin, that could potentially be taken out of the balance books within the next few weeks.
Quote:
Originally Posted by c1rcle
Ok but how much is it costing them now to pay Sky for the channels? probably not that far off what they stand to lose if 15% decided the hassle of changing was worth a couple of sub-standard channels & they are sub-standard these days with the amount of repeats they show on Sky1.
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But according to the poll on this thread, assuming it's roughly representative of the population, 15% of current VM subscribers have said that they would switch their supplier to Sky. This is not lost revenue to Sky, it is direct revenue at a higher margin than having them from Virgin. Also, it would be interesting to add another option to the poll, for people who would cancel Virgin but not subscribe to Sky - probably not a substantial contingent, but interesting none the less.
However, of course, Sky would lose the revenue from the 84% that Incog talked about earlier. However, for the basic channels, it likely to be a pretty small amount of money by comparison - someone guessed at £45m per year, but both parties keep the actual costs completely secret - when Sky would be picking up an additional £200m in direct sales a year from that 15%.
I probably haven't explained that too well, does it make sense?