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“Soft” first quarter at Virgin Media
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Old 08-05-2019, 17:54   #1
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“Soft” first quarter at Virgin Media

Quote:
In the three months to March 31, 2019, Virgin’s ARPU was down to 51.36, from 51.58 12 months previous.

However, it was far from a bad quarter for Virgin, which put on 60,000 RGU additions.

It also increased its top broadband speed to 500 Mbps, while introducing a new Intelligent WiFi system designed to improve customers’ in home experience.
https://www.broadbandtvnews.com/2019...-virgin-media/
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Old 09-05-2019, 20:27   #2
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Re: “Soft” first quarter at Virgin Media

Maybe this is why they are pushing V.VIP so much, to get their ARPU up?
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Old 09-05-2019, 20:44   #3
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Re: “Soft” first quarter at Virgin Media

Probably why they are making it more difficult to get discounts for people who aren't genuinely intending to cancel. There's no point in having price rises if people can essentially opt out.
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Old 10-05-2019, 10:12   #4
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Re: “Soft” first quarter at Virgin Media

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Originally Posted by jfman View Post
Probably why they are making it more difficult to get discounts for people who aren't genuinely intending to cancel. There's no point in having price rises if people can essentially opt out.
True, but surely a retentions deal just serves to delay a price-rise by 9/12/15 months..
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Old 10-05-2019, 20:08   #5
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Re: “Soft” first quarter at Virgin Media

...and a retention deal with a lower profit is better than losing a customer altogether.

These days they do seem to be letting people go ahead and cancel though and then contacting them later on during the notice period to try to get them to stay.

A family member and a friend had both been with cable for donkeys years and rang to say that they found the latest price rises were unacceptable. Nothing was done to try and keep their custom, so they both set up new (cheaper) suppliers to start after the cessation of their VM services.

Calling their bluff and contacting them towards the end of the notice period certainly backfired in these cases as their reduced price offer simply came too late. I'm certain that had something been done in a timely manner, they would have stayed with VM.
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Old 10-05-2019, 20:22   #6
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Re: “Soft” first quarter at Virgin Media

Yeah, I've had a soft quarter too. Mainly due to bloodsucking offspring....
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Old 11-05-2019, 12:55   #7
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Re: “Soft” first quarter at Virgin Media

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Originally Posted by RichardCoulter View Post
...and a retention deal with a lower profit is better than losing a customer altogether.

These days they do seem to be letting people go ahead and cancel though and then contacting them later on during the notice period to try to get them to stay.

A family member and a friend had both been with cable for donkeys years and rang to say that they found the latest price rises were unacceptable. Nothing was done to try and keep their custom, so they both set up new (cheaper) suppliers to start after the cessation of their VM services.

Calling their bluff and contacting them towards the end of the notice period certainly backfired in these cases as their reduced price offer simply came too late. I'm certain that had something been done in a timely manner, they would have stayed with VM.
Only if the customer actually intends to leave though.

If the customer doesn't intend to leave then it's revenue lost. Yes, taking a hard line will result in some customers moving on, but if the proportion of chancers is high then a hard line will benefit revenue and profits in the long run. Less customers isn't a bad thing if those remaining are higher quality.
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Old 14-05-2019, 11:11   #8
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Re: “Soft” first quarter at Virgin Media

I switched my TV from VM to Sky a few years ago and one of the things Sky tend to do now is advertise the majority of their offers to both new and existing customers, the latter tying you into a new contract.

Surprised that VM haven’t followed suit as it surely alleviates a lot of the faux cancellations if existing customers can just select a new deal if they are happy with a new contract.

With the amount of cord cutting, service providers, etc, these days, I think Sky have it spot on as retention is as valuable as attracting new customers in this day and age.
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Old 14-05-2019, 19:27   #9
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Re: “Soft” first quarter at Virgin Media

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Originally Posted by Superblade7 View Post
I switched my TV from VM to Sky a few years ago and one of the things Sky tend to do now is advertise the majority of their offers to both new and existing customers, the latter tying you into a new contract.

Surprised that VM haven’t followed suit as it surely alleviates a lot of the faux cancellations if existing customers can just select a new deal if they are happy with a new contract.

With the amount of cord cutting, service providers, etc, these days, I think Sky have it spot on as retention is as valuable as attracting new customers in this day and age.
Before being bought by Comcast, Sky UK/Ireland ARPU fell to £45 a month down from £47 the previous year which puts Virgin's 22p decline (£51.36 from £ 51.58) into perspective.

According to BARB estimates, Sky has lost 900,000 DSat customers in the UK over the past 7 years and, unlike Virgin, Sky/Comcast refuse to reveal actual UK DTH subscriber numbers which in itself suggests Sky do not have it quite so spot on as you think they do. Plus, let's not forget the best deals from Sky (and Virgin) remain exclusive to those who refuse any new deal and cancel.
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Old 14-05-2019, 20:12   #10
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Re: “Soft” first quarter at Virgin Media

Long may it continue I'm all for paying less at contract end.

Jeremy Darroch can worry about the numbers , he gets paid enough.
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Old 15-05-2019, 10:13   #11
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Re: “Soft” first quarter at Virgin Media

Quote:
Originally Posted by batchain View Post
Before being bought by Comcast, Sky UK/Ireland ARPU fell to £45 a month down from £47 the previous year which puts Virgin's 22p decline (£51.36 from £ 51.58) into perspective.

According to BARB estimates, Sky has lost 900,000 DSat customers in the UK over the past 7 years and, unlike Virgin, Sky/Comcast refuse to reveal actual UK DTH subscriber numbers which in itself suggests Sky do not have it quite so spot on as you think they do. Plus, let's not forget the best deals from Sky (and Virgin) remain exclusive to those who refuse any new deal and cancel.
Do you think this will force a change? The best deals will have to be publicised in future.

https://advanced-television.com/2019...st-deal-rules/
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Old 29-05-2019, 17:01   #12
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Re: “Soft” first quarter at Virgin Media

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Originally Posted by OLD BOY View Post
Do you think this will force a change? The best deals will have to be publicised in future.

https://advanced-television.com/2019...st-deal-rules/
I think this is a good idea. Many people are too busy, are shy, have cognitive difficulties or lack the confidence to haggle and end up being penalised for this.

I wonder, however, if they will still be able to offer certain customers a bespoke price. I wrote to complain about the latest price rise (I can't leave at the moment as i'm still in contract domestically for a few more months) and have had the price rise extinguished plus a bit more off on top.

I was told that this discount is open ended and will never expire. I told them that i'd been told this before and had experienced hassle further down the line, so they have put this in writing for me to prevent a repetition.
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Old 29-05-2019, 17:54   #13
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Re: “Soft” first quarter at Virgin Media

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Originally Posted by RichardCoulter View Post
I wonder, however, if they will still be able to offer certain customers a bespoke price.
Yes they can. See my earlier post on the subject.
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Old 29-05-2019, 18:09   #14
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Re: “Soft” first quarter at Virgin Media

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Yes they can. See my earlier post on the subject.
You may have to link or cut'n'paste it as it's not on this thread spiderplant.
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Old 29-05-2019, 20:41   #15
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Re: “Soft” first quarter at Virgin Media

It's ok, i've found it

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Originally Posted by spiderplant View Post
No, they only have to show generally available tariffs.

"We acknowledge that, where notifications include the cheapest generally available tariff, a customer may be able get a cheaper price than that shown by negotiating directly with the provider or purchasing via a third party."

"there is also nothing that prevents providers from presenting alternative tariffs to their customers, where they are lower than the cheapest generally available tariff and the provider decides to make them available"

Source: Ofcom
It's good to know that my pricing won't change, but that those unable/unwilling to negotiate are still able to benefit from this.
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