Cable TV, broadband and phone provider Virgin Media yesterday claimed that they have seen a reduction in the number of customers who are migrating from their service to Sky, following the removal of Sky’s basic channels.
It is thought that strong PR and a massive advertising push (e.g. Big Brother sponsorship) may be the reason behind the reduction of migrating customers.
The number of net new additions to their TV service has roughly plateaued whilst the groups fears of leaving customers is subsiding.
Sky channels were removed from Virgin Media’s service in February but some delay in falling numbers was expected due to the 30 day notice cancellation.
Since taking control of the former NTL/ Telewest service, Virgin Media now employs around 2,000 employees based in Merseyside and have over 100,000 TV, phone and broadband customers.
Virgin Media saw a net customer loss of an astonishing 46,000 in just 3 months at the start of the year, caused mainly by poor performance by its fixed telephony system and fewer new customers signing up.
Although the group is still expecting to show losses for the second quarter, Virgin Media are expecting to see their fortunes change in the second half of the year.
For Virgin Media to truly dominate over its rival, the Sky TV channel issue may need to be resolved - especially as it is causing a detrimental affect to both companies. Sky have lost £15m and £20m in their current financial year so far, thought mainly due to a reduction in their advertising. There maybe an end to the TV issue shortly as Virgin Media are taking BSkyB to the high court.
In a recent poll, almost half of Virgin Media’s customers (45%) said that they would prefer to be with Sky