Quote:
Originally Posted by Cozzy
Do we even know exactly what the £3 sub is for and who is actually getting the wonga ?
i mean are VM taking the £3 and passing the whole sum to tivo or just part of it or have VM already paid up front and are clawing back that investment
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It doesn't matter. VM buy services from many suppliers, bundle them together and then sell them to us. What VM charge us is not directly related to what it costs them, although clearly they don't sell at a loss.
I would expect that VM have a long term contract with TiVo, that is complicated and has many different charges and levels. I would expect TiVo to want some guaranteed minimum revenue, and VM to have hedged their risk on how many they will sell by agreeing a tiered charge to TiVo, the more boxes they sell, the more TiVo get.
The key point is that at present, VM correctly assume that there are enough people willing to pay a £3 per month premium to get the TiVo service. At the moment, VM only sell one package of TiVo, one 1TB TiVo box, only available if you take XL TV.
I'm sure VM will offer different packages and bundles, and eventually different boxes. But they are not doing that at the moment.