“Soft” first quarter at Virgin Media
08-05-2019, 17:54
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#1
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Also on X (Twitter)
Join Date: Jul 2006
Location: Media Boy UK HQ
Posts: 14,739
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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.
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https://www.broadbandtvnews.com/2019...-virgin-media/
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09-05-2019, 20:27
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#2
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cf.mega poster
Join Date: Jan 2008
Posts: 10,063
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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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09-05-2019, 20:44
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#3
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Architect of Ideas
Join Date: Dec 2004
Posts: 10,362
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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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10-05-2019, 10:12
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#4
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cf.geek
Join Date: Apr 2008
Services: V6 with Full-House/Maxit Sports & Movies, 100Mb broadband, Talk Weekends.
Posts: 570
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Re: “Soft” first quarter at Virgin Media
Quote:
Originally Posted by jfman
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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True, but surely a retentions deal just serves to delay a price-rise by 9/12/15 months..
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10-05-2019, 20:08
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#5
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cf.mega poster
Join Date: Jan 2008
Posts: 10,063
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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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10-05-2019, 20:22
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#6
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Woke and proud !
Join Date: Jun 2004
Services: TV, Phone, BB, a wife
Posts: 9,133
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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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11-05-2019, 12:55
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#7
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Architect of Ideas
Join Date: Dec 2004
Posts: 10,362
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Re: “Soft” first quarter at Virgin Media
Quote:
Originally Posted by RichardCoulter
...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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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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14-05-2019, 11:11
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#8
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cf.geek
Join Date: Mar 2011
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Posts: 582
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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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14-05-2019, 19:27
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#9
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cf.addict
Join Date: Jan 2007
Posts: 182
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Re: “Soft” first quarter at Virgin Media
Quote:
Originally Posted by Superblade7
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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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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14-05-2019, 20:12
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#10
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cf.mega poster
Join Date: Mar 2010
Posts: 12,313
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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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15-05-2019, 10:13
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#11
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Rise above the players
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Re: “Soft” first quarter at Virgin Media
Quote:
Originally Posted by batchain
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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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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29-05-2019, 17:01
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#12
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cf.mega poster
Join Date: Jan 2008
Posts: 10,063
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Re: “Soft” first quarter at Virgin Media
Quote:
Originally Posted by OLD BOY
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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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29-05-2019, 17:54
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#13
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cf.mega poster
Join Date: Jun 2003
Posts: 8,901
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Re: “Soft” first quarter at Virgin Media
Quote:
Originally Posted by RichardCoulter
I wonder, however, if they will still be able to offer certain customers a bespoke price.
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Yes they can. See my earlier post on the subject.
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29-05-2019, 18:09
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#14
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cf.mega poster
Join Date: Jan 2007
Posts: 2,526
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Re: “Soft” first quarter at Virgin Media
Quote:
Originally Posted by spiderplant
Yes they can. See my earlier post on the subject.
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You may have to link or cut'n'paste it as it's not on this thread spiderplant.
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29-05-2019, 20:41
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#15
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cf.mega poster
Join Date: Jan 2008
Posts: 10,063
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Re: “Soft” first quarter at Virgin Media
It's ok, i've found it
Quote:
Originally Posted by spiderplant
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
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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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