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Old 19-12-2016, 11:44   #18
Stuart
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Services: Virgin for TV and Internet, BT for phone
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Re: Virgin Media considering launching budget brand

Quote:
Originally Posted by Mr K View Post
It might backfire if a lot of VMs current customers downgrade to save some money. Doubtless it will only be available to 'new' customers. Once speeds went above 20MB it all became a bit of a silly numbers game.
I've never worked for VM, but from what I've been told, they actually take a loss on the higher tiers, subsidising them from the profits from the lower tiers, purely because more people buy the lower tiers.

---------- Post added at 11:44 ---------- Previous post was at 11:35 ----------

Quote:
Originally Posted by vm_tech View Post
I'm not sure why a new brand would be needed, surely just a new tier would do it? I presume it would need to be a standalone BB offering as the V6 requires 100mb I believe
Depends. If they are trying to position Virgin Media as a premium brand, having the bulk of their customers on a low tier will detract from that premium brand. This is why (for instance), Panasonic have two different brands. Panasonic for the low end and consumer stuff, Technics for the high end consumer and studio stuff (although, oddly, Panasonic do a well recieved range of professional video cameras under the Panasonic name). Similarly, TEAC have two brands, TEAC (for the low end and consumer stuff) an Tascam (for the high end consumer and studio stuff).
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