Thread: 4 HD channels to launch on Virgin Media
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Old 14-07-2009, 10:36   #61
TheDon
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Re: 4 HD channels to launch on Virgin Media
Quote:
Originally Posted by Central View Post
VM are in no position to bargain HD channels. VM need to have there channels on Sky.
I wish people would stop saying this because it's completely untrue when it comes to linear HD channels.

What extra revenue are VM going to get from having an HD version of their channels on Sky?

The answer? Just what Sky pay them for them.

There is pretty much zero added ad revenue from a HD channel (which is the only reason you want your channels on as many platforms as possible) as you're not gaining enough new viewers to demand more for ad space.

This is the exact reason why Sky can withhold their HD channels, they don't need the Sky basics or premium channels in HD on VM because they're still generating the ad revenue from the SD varients. There's no incentive to offer them as the only thing it will do is stop people switching to you to get them.

Offering HD varients of channels to other providers only has the possibility of LOWERING your revenue, not increasing it.
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