Thread: General Coming Soon to Virgin TV (2013) Vol. 1.
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Old 10-03-2013, 00:14   #2422
HDFootyMan
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Re: Coming Soon to Virgin TV (2013) Vol. 1.
Quote:
Originally Posted by ocav View Post
Yeah but ESPN is £10 a month for anyone not on XL, so does that mean Virgin Media get about £9 in profit from every ESPN (non-XL) subscriber?

I can see that being a figure for non subscription based channels, but for a subscription channel I bet it's quite a bit. Lets pretend virgin got sky sports included on the XL pack, I doubt they would be able to reduce it to less than £10 a month per customer...
VM don't make that amount of profit with ESPN, at least, not in that way.

If ESPN was £10 per month for everyone on VM, how many people would take it? Not many.

ESPN get away with it on Sky because on that platform, customers are more willing to pay for premium content.

By doing a wholesale deal with VM, ESPN win due to extra cash (20p per XL customer every month). VM win because XL looks more attractive to upgrade to (which doesn't do ESPN any harm). XL customers win because they get the ESPN content at no extra cost.

Everyone wins.

Didn't Premier Sports want to be on XL as well as opposed to being a Premium channel? Why wouldn't they? 20p per XL customer every month vs hoping that a few will sign up for £10 per month.
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