DerbyshirePoolie wrote:
Branson isn't blameless either though. Why should he only pay a fraction of the price per viewer that Sky subscribers pay?
Err, because Sky don't have to pay for the infrastructure that Virgin use for distributing the signal? After all, part of what you pay for with a Dish is the satellite bandwidth, costs of running Sky's billing, support for Digiboxes etc. All Sky have to provide to NTL is the correct signal which isn't going to cost any more if it's for 1 million than 10,000. NTL/Virgin then have all the technical hassle of getting it out to their customers... so even at a relatively lower income they could well be making more per customer on NTL than for the same customer with a Minidish - they're much cheaper to support from Sky's point of view.
However as Sky is now offering far more services (Broadband, I think they're doing phone as well now, pay per view, High Definition, Sky+) they think they can get more money per user if they're on Sky as they'll probably take other services or channel packages. I know that when we were on Cable, there were a lot of channels that came even with relatively basic packages (Sci Fi, MTV, VH1 spring to mind) that aren't on the relatively basic package we now get from Sky.... to get them we'd have to add another "mix" to our current one. - so who gets that money then?
I actually am beginning to think timing and content are at the heart of this. As has been pointed out, a lot of series are currently on Sky 1 and part way through - so people will complain bitterly if it goes off and Virgin get a lot of the flack. If it was in, say, June, a lot of series had finished, and then "Virgin Prime" appears and takes a lot of the top programmes currently on Sky, who will lose market share? Similarly, Virgin seems very short on self-produced content or channels (from memory at least) beyond the odd local channel - presumably one of the big reasons Branson wanted ITV. If you're going to battle over content, Sky is the clear winner now - but if you could add ITV to Virgin and then win some of the top shows from the US, it would be a lot tighter battle. I wonder if Sky is attacking now, before Branson can get the content in?