Quote:
Originally Posted by New to cable
What is the £5 paying for?
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Everything. Neil Berkett, chief executive, said that unlike British Sky Broadcasting's Sky+ box, Virgin Media did not subsidise TiVo.
Economics of a TiVo migrate
Box cost ~ £100
Install cost £40
Monthly rental £5*
…therefore payback in… < 3 years
incremental installation fee £50**
…which reduces payback further…
… but can be waived if the customer has the potential to deliver long term value…
Economics are even stronger for a new customer
* Includes VAT. £4.17 exc VAT. Fee increases to £5 on Feb 28th, 2012
** Includes VAT. £41.67 exc VAT