Virgin Media seems to acknowledge that it cannot compete with Sky in premium pay-TV and is instead planning to entice customers with an updated broadband services.
Acting chief executive Neil Berkett wants to move the focus away from TV and onto more mass-market households who do not need Sky’s sports and movie channels but do want more than basic Freeview digital TV. Virgin Media hopes these households can be tempted with IPTV services such as video on demand that require fast broadband. “Despite our technical advantage we are still not really standing out from the crowd,” said Berkett. “I really do want to re-focus our energies onto the broadband platform.”