virgin to scrap V PLUS CHARGE

[starsailor123uk]

Originally Posted by mattysheff

Here's a quick summary of the charges.

If your on the VIP Pack nothing will change for you you will carry on paying £85 a month. If you've got more than one box you'll pay £5 per month for each extra box.

If you've already got the V+ but not on the VIP pack again nothing will change you will carry on paying the monthly rental. BUT you are given the option of paying a £100 service fee and then after that the there will be no box rental.

From the 1st July. If you want a V+ box you will have to pay £150 install charge but theres no ongoing monthly rental.

---------- Post added at 20:29 ---------- Previous post was at 20:26 ----------

oh and you still don't own the box, so if it develops a fault Virgin will repair it.

So, just to be clear are saying that

for someone with 2 V+ boxes their options would be

a1) £100 up front * 2 plus a £5 subscription on top for the second box ( this is more consistent with the current £10 for the first and £15 for the sceond)

a2) £100 up front * 2 and no ongoing subscriptions

b1) £10 for first and £15 for the second box as currently

b2) £10 for first and £5 for the sceond box

c) £100 up front for first box and £5/month for the second per month

I think that if a1, b1 or c are apllicable then they are making the SKyHD option with multiroom very much more attractive (especially if like me you have a Sky+ box (or Sky box) from a previous address)

I think I will await for the official announcement and then make my mind up. would not want to rush based on a Sky's salesman post as this appears to be!

[TONYHAMILTON]

So will we pay 10 per month for 10 months and dont pay anything for the last 2 months in a 12 month contract??

[starsailor123uk]

Originally Posted by TONYHAMILTON

So will we pay 10 per month for 10 months and dont pay anything for the last 2 months in a 12 month contract??

There's no easy payment terms as far as I see

A reasonable deal would be

for new customers

£150 up front or £10 per month for 18 months (£180 includes £30 handling/financing costs)

For existing customers

£100 upfront or £10 month for 12 months (£120). The only issue would be how they would deal with installation already paid and subs made

[LostintheNW]

Ok so I am paying ther £10 in my VIP price, so if I was to pay this then I would get my package price reduced?

Not that I am going to be paying upfront for it as if they do bring this in, then all services are going - think this is a total rip off as you know full well that you will pay upfront and then they will still charge you the £10 a month on top

[Robbie G]

Originally Posted by popper

the next quarter results need a big boost after all

In itself it won't improve their second or third quarter revenue results and will increase their liabilities (no change in net assets until they spend the cash) so I'm not sure how you related the two. The income will need to be booked as customer deposits on the balance sheet and released to revenue over the twelve months to which the payment applies.

[starsailor123uk]

Originally Posted by Robbie G

In itself it won't improve their second or third quarter revenue results and will increase their liabilities (no change in net assets until they spend the cash) so I'm not sure how you related the two. The income will need to be booked as customer deposits on the balance sheet and released to revenue over the twelve months to which the payment applies.

Why would they book the £150 up front fee against the next twelve months. That would only be necessary where there was a liability. There would be no liability, if one month after you have paid the £150 you decide its not for you tough. even 1 day after you have paid the £150 there is no liability to VM other than repair and replace costs which are currently treated as expenditure as it occurs.

on a side note in the Mail on Sunday it reported that Pace were looking to release their products under their own name in the future under the headline.

"Pace to take on the media giants"

http://www.mailonsunday.co.uk/pages/...n_page_id=1804

and under headlines

wonder if VM /sky or both are willing to let the equipment providers do there own things with a royalty payment system.

maybe less money potentially but less hassle

[Robbie G]

Originally Posted by starsailor123uk

Why would they book the £150 up front fee against the next twelve months. That would only be necessary where there was a liability. There would be no liability

Customer deposit receipts are accounted for as a liability and released to revenue over the period to which the income applies. Go and read up.

[ShaneC]

Originally Posted by JG3870

It'll be nice to pay £10 less per month for the V+ box but this £100 upfront cost is a lot of money to shell out in one go especially if your on a tight monthly budget

That is true, however they are not offering us anything less, something additional really. Now if they offered it to me in 10 x £10 installments I would be happy

[starsailor123uk]

Originally Posted by Robbie G

Customer deposit receipts are accounted for as a liability and released to revenue over the period to which the income applies. Go and read up.

Its actually less clear than you make it out to be

firstly, and this bit is clear, this is not a deposit but a payment for services (as the goods are never transferred) in an upfront payment rather than £10 per month. if at the end of the contract the individual does not return the box they would be liable for a cost of the box as currently. there is no transfer of ownership.

secondly if we are treating it as an asset rental over what period do you

I presume you are using 12 months as the mimium contract however if you went down this lane there are a few nuances to be considered

1. For existing customers with V+ boxes any mimimum contract has ceased or has less than 12 months to run and therefore the £100 should under that definition be recognised at a greater rate.

2. VM, with its auditors, would have to agree a method to alloate the cost over a period of time which reflects the time of the contract. As an open-ended contract with a 1 months notice after twelve months this is likely to be in excess of 12 months on average.

The problem with apportioning it over period over 15 months would mean that it would in income terms reduce profits in the short term (presuming £10 per month is currently recorded) with the advantages of a increased shortterm cashflow. As any method is likely to reduce profits that may be OK as the short term cashflow is nice.

With the news that Pace is looking to enter the VM/Sky market with an own brand product maybe VM are looking to realise their current level of stock of V+ boxes by receiving £100/£150upfron tand then move out of the market for equipment supply in the future and act in a purely sky way in the future of selling a box and the liability is yours after the first twelve months.

[grabbi]

If that's the case, I'm opening mine and shoving a huge HDD in there. Hurrah!

[LostintheNW]

What happens if i tell them to bin the V+ recording functionality off then and I will just use the box as a standard one? they wont be charging me £100 then...not to mention by the time this all comes in I will have had the box for awhile anyway so don't see why I should have to pay the full whack.

Anyone know if this means our subscription charges are dropping by £10 (funny idea i know!) given we will have paid upfront for the so called removal of the charge

Originally Posted by LostintheNW

What happens if i tell them to bin the V+ recording functionality off then and I will just use the box as a standard one? they wont be charging me £100 then...not to mention by the time this all comes in I will have had the box for awhile anyway so don't see why I should have to pay the full whack.

Anyone know if this means our subscription charges are dropping by £10 (funny idea i know!) given we will have paid upfront for the so called removal of the charge

I think I understand what you are asking!

If you don't want the recording function, they will probably replace your V+ with a V which doesn't have HD capability. In this eventuality, you will save £10 per month as you won't have to pay the V+ charge.

If you choose to keep the V+ and pay the £100, you will no longer pay the £10 per month V+ charge.

I agree with you that if you have had the V+ for some time there should be some 'reward' for this in terms of the £100 charge. Unlikely to see anything here unfortunately. I have had the V+ for over a year but still have to pay the £100 same as someone whose only had it for a short time.

[starsailor123uk]

Originally Posted by Ernie_C

I think I understand what you are asking!

If you don't want the recording function, they will probably replace your V+ with a V which doesn't have HD capability. In this eventuality, you will save £10 per month as you won't have to pay the V+ charge.

If you choose to keep the V+ and pay the £100, you will no longer pay the £10 per month V+ charge.

I agree with you that if you have had the V+ for some time there should be some 'reward' for this in terms of the £100 charge. Unlikely to see anything here unfortunately. I have had the V+ for over a year but still have to pay the £100 same as someone whose only had it for a short time.

I, like you Ernie C, am annoyed that the installation and payments since Feb2006 are counted for nothing!

I would hope that they look at posting on here and digitalspy and respond accordingly ( which to their credit and loss of income Sky did with Sky Movies)
but am not hopeful.

The factors that give me little hope is

1. The proposal as outlined seems to have been drawn up against a Sky+ pricign policy that now longer exists

2. The lack of a definitive statement following last wednesday's we are reviewing v+ pricing.

The worrier in me thinks that it will go ahead as outlined and be announced on the day that the new content is revealed (probably andy pandy TV by current standards and then only series 1 )

Originally Posted by starsailor123uk

I, like you Ernie C, am annoyed that the installation and payments since Feb2006 are counted for nothing!

There are always two sides to any discussion. I would be the first to admit that £10 per month, for the PVR function that V+ gives me, is great value for me. It has changed our viewing habits to a huge extent.

The new 'deal' will save me money after ten months which is good as I intend to keep the V+ long term.

I didn't pay the £75 install charge - when ordering I said I was disappointed at having to pay it but never asked for or was offered a waiver of this fee. It never appeared on my bill, either through a nice CS person or billing incompetence. I have, however, paid £140 in monthly V+ fees.

We'll see what is announced I guess and then decide what to do.

[starsailor123uk]

Originally Posted by Ernie_C

There are always two sides to any discussion. I would be the first to admit that £10 per month, for the PVR function that V+ gives me, is great value for me. It has changed our viewing habits to a huge extent.

The new 'deal' will save me money after ten months which is good as I intend to keep the V+ long term.

I didn't pay the £75 install charge - when ordering I said I was disappointed at having to pay it but never asked for or was offered a waiver of this fee. It never appeared on my bill, either through a nice CS person or billing incompetence. I have, however, paid £140 in monthly V+ fees.

We'll see what is announced I guess and then decide what to do.

There are advantages but also options I am going to hold fire for a month or so and see what happens if the package comes in as expected

I expect Sky to reflect the new world by adjusting Sky HD downwards and may look at combination of Cable and Sky as I had at my previous address