Thread: Sky makes £160m bid for VM channels
View Single Post
Old 23-02-2010, 09:27   #71
sherer
Inactive
 
Join Date: Jul 2003
Location: Bromley
Age: 47
Posts: 2,688
sherer is a pillar of societysherer is a pillar of societysherer is a pillar of societysherer is a pillar of societysherer is a pillar of societysherer is a pillar of societysherer is a pillar of societysherer is a pillar of societysherer is a pillar of societysherer is a pillar of societysherer is a pillar of societysherer is a pillar of societysherer is a pillar of societysherer is a pillar of societysherer is a pillar of societysherer is a pillar of societysherer is a pillar of societysherer is a pillar of societysherer is a pillar of societysherer is a pillar of society
Re: Sky makes £160m bid for VM channels
Quote:
Originally Posted by tvtimes View Post
I could understand if VM had a clause where they could keep them for say 20 years or maybe even 15 years because that gives them plenty of time to service their debt properly and pay a significant portion of it, plus they will have been able to establish further growth by then as the full DSO would have come and gone and they could invest in their infrastructure and platform to compete better with Sky with their customer growth and therefore revenue. Or they could have the time to build up another channel portfolio. VM might aswell get out of the channel market now anyway because it has become so heavily saturated by the sheer amount of channels now available that it's hard to establish a decent audience share now anyway and even if you can it's hard to keep it up every day and it's only going to get harder in the future.

Their TV service needs significant investment to seriously challenge Sky and this will be made even harder once BT roll out fibre and Sky can piggy back on the back of that and offer a truly great VOD service. Sky seem to be ahead of Virgin in-terms of innovation, besides vod of course, they had HD first and are now creating a 3D service all while VM are still getting their hands dirty with HD only now. I hope VM are able to use the BT infrastructure (at a cost) to infiltrate the areas where cable is currently not available. then they can truly compete with Sky. I suppose they have to sell if they want to invest but just please VM not to Sky!
based on VM negotiations with Sky in the past I expect them to get screwed on the deal
sherer is offline   Reply With Quote