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Are they? They don't have Netflix, so when it comes to content, VM are still in the lead.
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People have been able to get Netflix without Tivo, ever since it launched in the UK, and many people have.
Just because you have been reluctant to add another, inexpensive box to your TV, doesn't mean other people are. Also, many people don't need to add another box because many of their existing equipment, if bought within the last couple of years already has Netflix.
So, in my view, VM having Netflix doesn't count, especially as it's not free with the VM service, which is the case with other OD content.