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Old 13-05-2011, 12:42   #163
muppetman11
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Re: Virgin Media lack of tv investment

Quote:
Originally Posted by LexDiamond View Post
My theory is correct as inflation is a fact.

If, e.g., VM tv faces inflation of 3% a year on the selling price of a sub and let's say at a price of 24.50 VM do not raise their price for 5 years then in year 5 as per VM's inflation rate they should have received 28.40 but only receive 24.50 meaning they lose 3.90 on each sub that year. That 3.90 is an actual loss of revenue per sub to VM as they pay 3.90 more to deliver that sub.
I was more referring to , people will always expect more especially when prices go up , be it right or wrong , its easy to switch to another service or go down the freeview , youview route.
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