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Originally Posted by Top banana
Be interesting to see what Gavin says in a few months. They need a hell of a lot of customers to move from Sky and VM to cover the cost of setting up their sports offering. The investment community have given todays announcement a massive thumbs down which has led to a reduction of £6.60 off their share price.
The view is that this is aimed at getting Sky BB customers onto infinity and that the impact on VM will be minimal.
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I actually don't think it's going to be possible to recoup their outlay, and by their own admission they're well on plan B. Todays announcement makes it clear that they're looking to make the best of a bad situation - they can't use their new product to sell their TV service because the rest of it isn't good enough to compete, so they're going to concentrate on building up the brand and, if they can pick up a few broadband customers along the way then that's a bonus, with the added benefit of being able to showcase their offering to the UK's largest broadband customer base. They're in it for the long haul, and intend to bid again in the next rights auction, but I wouldn't now be surprised if BT Sport doesn't turn up on Virgin.