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Originally Posted by supremus
...just like we can compare the price and features between Virgin and Cable, and I think most people would agree that Sky offer a superior service.
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I don't agree and, I suspect, neither do the vast majority which is why Virgin Media is not only the number one broadband ISP but also the most popular pay tv service in its marketable areas and why when industry title Marketing magazine last week revealed the results of its annual brand survey - Virgin Media was the sixth most loved brand while Sky was revealed as the 39th most-hated brand in the UK.
Top 10 Loved Brands…
1. Nokia
2. Tesco
3. iPod
4. O2
5. Facebook
6. Virgin Media
7. BBC One
8. Next
9. Asda
10. Marks & Spencer.
Virgin Media also won the battle of the ISPs by a significant margin, while Sky fell behind BT in third place.
Most loved ISP - %
Virgin Media - 24.3
BT Openworld - 12.8
Sky - 8.1
AOL - 7.5
Tiscali - 5.7
Most hated ISP - %
AOL - 25.5
BT Openworld - 10.7
Sky - 7.9
Tiscali - 7.5
Orange Home UK - 4.7
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That's not to say Virgin isn't better suited for some people,
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Not just some. The majority of digital pay tv subs (and digital pay tv net adds each quarter) in Virgin Media addressable areas belong to Virgin Media.
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but there's a reason even Virgin themselves have said they can't compete with Sky's television package,
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Virgin not only compete with, but beat Sky when going head to head - Virgin offer the most comprehensive pay tv package in the UK which is why they rightfully claim superiority over Sky in pay tv and why they are marketing on demand tv & broadband as their hero products.
This is what Virgin's CEO actually said about competing in the TV marketplace...
Premium TV (Sky Sports & Movies, Setanta Sports) - This market is not growing and requires heavy investment and content, primarily movies and sports, to compete. Due to content locked-up by our satellite competitor, this makes the economics here difficult for us to compete effectively. So, the opportunity for us here today is relatively limited compared to other opportunities. Of course, as you know, we are addressing some of our concerns about market behaviour to regulators and will continue to pursue all avenues to ensure a level playing field going forward.
Pay TV ( Virgin Size L & XL TV Vs Sky 1 to 6 Mixes) - The market is growing nicely and is driven by choice and price. We are well placed here with our wide range of Video on Demand functionality and content. We also offer some richer content than our competitors. For example, we include standard sports and live premiership football in our basic [XL TV] pack. We have superiority [over Sky] in the mid TV space. Broadband is our hero product, but it is our hero product within the Quad-play.
Free DTV - Freeview leads the market with nine million homes and growth is continuing, however, many of these consumers are dissatisfied with the range and choice of content. By bundling with a phone line and giving access to VoD content, we can offer greater choice and then we have the opportunity to try and up sell and cross sell other services. We want to take advantage of the appetite of consumers who get the taste of multi-channel television through Freeview.