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Old 23-07-2018, 20:06   #283
dmeldrum
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Re: VM loses UKTV channels

Quote:
Originally Posted by OLD BOY View Post
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?
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