Quote:
Originally Posted by Paul Delaney
They'll probably be happy to let you go
I'm sure they have already worked out how many users deploying this system will cost them and have factored that against the profits they will be getting from their cut in Phorm's advertising revenue.
Say that Phorm will net them about £20,000,000.00 per year - @ £15.00 per month they can easily afford to lose 100,000 customers before the alarm bells start ringing.
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Paul,
If you are wishing to enter into hypothetical earnings then it would be better to pro-rata, for customer base size, on the projected (read possible hypothetically :-) ) 2010 income for B.T.
The projected income would be around a quarter of your number and churn would be exceptionally painful for VM compared to BT. For me it would be one out, all out and that is in excess of £1K per annum. By the time that the Virgin Media brand is considered synonymous with a spy company I suspect that the leavers will so far outweigh any income that Phorm will be dropped and a campaign launched to encourage returners to a spy free company.
These battles have only just begun and if implemented there will be new targets. The system needs paying advertisers and if as they appear each one is inundated with thousands of e-mails deploring their involvement with spyware and employing the reverse logic of "I now will boycott your company, totally", Phorm will be starved of the oxygen it needs to survive. It will not be long before they will be become aligned with Corporate financial suicide.
Virgin Media are IMO showing the least intelligence in this Phorm fiasco. They have high penetration in areas where the network is available. It is not feasible to increase network size due to cost factors therefore must gain income from value adding. Exploitation is not value adding and if exploitation leads to customer loss then in a limited sized network it is corporate foolishness in the extreme.
VM and its predecessors have been to the brink of the financial abyss before and I have a feeling of deja vue.