Virgin Media cannot afford to focus on cable broadband alone if it wishes to continue revenue growth, one analyst firm has claimed.
Enders Analysis noted that the firm posted "respectable" figures for the second quarter of the year, with turnover continuing to increase.
However, the firm described Virgin Media's cable volumes as being "exceptionally weak" – the firm shed 36,000 customers between April and June 2011.
Neil Berkett, Chief Executive at the broadband provider, shrugged off the decrease, attributing the fall to seasonal weakness and the stuttering UK economy.
But Enders Analysis believes the group's strengths may now lie in other areas – such as bundled entertainment services.
"We expect a trend of gradual decline in fundamental cash flow growth," the firm stated, referring to Virgin's cable broadband arm.
Virgin Media recently launched a TiVo-based IPTV service, while the firm is also preparing to offer an online, digital music downloads in conjunction with Spotify.