Quote:
Originally Posted by harry_hitch
Why fill numerous channels with dross though when they could offer a high quality service (like netflix) at a fraction of the cost? Exclusive sports and movie rights are a different ballgame and should, unfortunately, be charged at a rate punters are willing to pay.
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Well, exactly. Sky should have been making or commissioning good dramas of its own rather than relying on US imports. It has just gone for the cheap and cheerful option.
It is certainly curious that a subscription channel like Sky 1 is of inferior quality to a free commercial channel like ITV1. They should be using their subscription and advertising revenues to improve the quality of their programming, which would in turn attract more customers.
There will come a point at which subscribers will decide to ditch Sky altogether if they don't rise to the challenge of the likes of Netflix and provide viewers with a reason to continue to pay all this money to them, which currently is for very little.
---------- Post added at 13:42 ---------- Previous post was at 13:39 ----------
Quote:
Originally Posted by RobboEdin
No direct revenue comes to Virgin Media, although they may get some remuneration for their marketing activity.
All customers of Netflix pay Netflix directly for the service.
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Although we pay directly for Netflix, VM must have an arrangement whereby they earn a fee from making the service available on the platform.
---------- Post added at 13:46 ---------- Previous post was at 13:42 ----------
Quote:
Originally Posted by Kabaal
I do wonder if they are shooting themselves in the foot giving netflix away. It's bound to make many question whether their actual TV package is worth it, especially the cheapest one considering you don't get Sky1, Syfy etc on it.
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Netflix is available to people who want to use it by other means, so I don't think VM are shooting themselves in the foot. What they are doing is bringing together a huge range of content in a way that helps customers by not having to buy additional equipment to view it.
I don't think VM will lose too much sleep if customer responses lead them to rely less on the anti-competitive practices of Sky. I don't think VM even make a profit from providing access to Sky Movies!