Virgin Media 2007 Annual Report Download - page 12

to almost all of our digital customers. In 2007, VOD usage increased to 33 million average monthly
views in the fourth quarter from 14 million average monthly views in the first quarter. We believe
customers who use VOD are less likely to churn.
There are three primary types of content available within Virgin TV On Demand, a portion of
which is refreshed on a daily basis. A selection of content is available to watch for free to all DTV
customers irrespective of package size. This is primarily focused within our ‘catch-up’ TV service which
offers a selection of more than 150 hours of top broadcast TV shows from the previous seven days for
no additional charge. Additionally, all DTV customers have access to pay-per-transaction content
including over 1,300 pay-per-track music videos and 500 current and library movies provided by
‘FilmFlex’. In total, we have over 4,000 hours of on-demand content. New movies within this library are
available on VOD up to nine months before they appear on scheduled TV movie channels.
Pay-per-transaction programs are available for 24 hours after purchase and can be watched as many
times as a customer wishes during that period for only one single charge. Finally, DTV customers that
subscribe to our Size XL Virgin TV package have additional access to a subscription VOD, or SVOD,
package which includes premium TV shows and music videos, all included within the price of their
monthly subscription. Customers on our other TV packages can also receive the SVOD package on
payment of a monthly subscription charge.
In 2007, we launched an innovative new kind of television channel called ‘‘Virgin Central’’, which
combines the simplicity of a traditional channel with the choice and control of next generation
TV-on-demand technology. The channel hosts a continuously refreshing showcase of entertainment
around the clock. As with our other VOD offerings, by pressing one button and using a simple
on-screen guide, viewers have instant access to different episodes of the show they select. They can
then stop, rewind and pause—just like using a DVD player. Virgin Central includes free access to hit
shows like Sopranos, The OC, Nip/Tuck, Grey’s Anatomy, Spooks, Cold Case and Lost. The content is
updated regularly and, unlike a traditional TV channel, subscribers do not need to wait for scheduled
start times.
Digital Video Recorders and High Definition Television
We also offer one of the most advanced fully-supported digital video recorders, or DVRs, for a
premium monthly rental option or an up-front payment as part of our top bundle. The Virgin
Media DVR box, which is called the ‘‘V+ Box’’, is available to our entire DTV customer base. The
V+ Box has 160 Gigabytes of storage space (up to 80 hours of broadcast television), is high definition,
or HD, enabled and has three tuners, allowing viewers to record two programs while watching a third.
V+ Box customers that also have an HD compatible television can access our HD on demand content.
Digital video recorders are also known as personal video recorders, or PVRs, in the United Kingdom.
In 2008, we plan to further enhance the functionality of our V+ Box.
Broadband Internet
We deliver high-speed broadband and dial-up internet access to customers within reach of our
access network by direct connection to our network. We offer broadband services at a selection of
download speeds: 2Mb for Size M customers, 4Mb for Size L customers and 20Mb for Size XL
customers. During 2008, we plan to increase the speed of the 4Mb service to 10Mb and launch a 50Mb
service. All of our broadband services offer unlimited usage (subject to our fair usage policy) and PC
security software. Premium broadband services (which are free for Size L and XL customers) include
advanced security features such as anti-spyware and premium broadband content. We plan to focus our
efforts on increasing our market share in the U.K. by marketing the benefits of our high-speed
broadband service to both existing and potential customers. As of December 31, 2007, we provided
on-net broadband services to approximately 3.4 million customers.
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