Quote:
Originally Posted by OLD BOY
Virgin won't compromise if they are tired of this arrangement and want to spend the money saved to improve their offering.
|
I’m sure both sides will end up compromising, but i’m Also sure we will never know the detail. It will come down to the numbers.
Virgin will be balancing the cost / saving of having / not having UKTV channels against their estimate of the churn rate / drop in subscriber numbers. A fairly simple cost vs revenue equation.
UKTV will be weighing up the income / loss of income from Virgin and the drop in advertising revenue as a result of smaller audiences. UKTV costs are pretty much fixed, so for them it is pretty much a question of how much revenue can they get, or to put it another way, how little are they willing to tolerate?