Sunday, 25 March 2007

Virgin Media vs Sky - Round One

During recent spat between Virgin Media and Sky, I only read about how bad the Virgin Media services have been and angry customers leaving Virgin Media. Even though Virgin Media offered free contract terminations by end of March, it seemed many subscribers had no chance of reaching customer service representatives. Neil Berkett, COO of Virgin Media seems to be aware of the problem and seeks ‘patience and time’ from his customers. I think, it is too late for Richard. I have also seen the Sky offer of 30 GBP for switching to Sky (with additional 30 for recommender!).
The reason for this blog is to verify what the losses are for Sky - as until now it seemed Virgin Media took the majority of the hit.
Obviously, the advertisers and agencies are not happy with Sky’s strategic decision to depart from Virgin Media audience base. Sky has shared overall 12% dip in its audience and 8% dip in ad-sales (Sky One 30%, Sky News 18%, Sky Travel 30% and Sky Two 13%).
Sky is putting desperate efforts to keep in advertisers happy and asking for ‘patience and time’. Sky is hoping that the offers like the one I mentioned above plus quality football and movies on Sky One(& others) will gain the lost audience.

1 comments:

Anonymous said...

yep and Sky has warned drop in this year's bottomline by at least 15 million GBP - due to loss of fees and ad revenues.