Virgin Media 2008 Annual Report Download - page 13

In June 2008, we became the first TV platform in the U.K. to offer BBC iPlayer as part of our
on-demand service. BBC iPlayer enables viewers to catch-up on over 350 hours of BBC programs at no
additional cost to our customers. During the fourth quarter of 2008, there were on average 15.7 million
views per month of BBC programs via BBC iPlayer over our TV platform, representing approximately
one-third of all BBC iPlayer views. In February 2009, we added up to 40 hours of catch-up TV per
week and up to 500 hours of new content to our VOD offering from ITV plc, or ITV, one of the
largest commercial broadcasters in the U.K. We also expect to introduce enhancements both to our
library and our customer interface during the course of 2009.
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. Our
V+ Box customers with an HD compatible television can also access our HD on-demand content.
Digital video recorders are also known as personal video recorders, or PVRs, in the U.K. As of
December 31, 2008, we had 521,500 V+ Box customers, representing 15% of our digital subscribers.
Based on management estimates, our customers who use our V+ Box are less likely to churn.
As part of our content strategy, we constantly evaluate the merits of new channels and programs
which could enhance our diverse range of programming. With increasing consumer interest in HD
content, we are actively pursuing rights to HD programs for our leading VOD service.
Fixed Line Telephone
We provide local, national and international telephone services to our residential customers who
are within reach of our access network by direct connection to our network. We enhance our basic
telephone service by offering additional services, such as call waiting, call barring (which allows
customers to block certain incoming or outgoing calls), call diversion (call forwarding), three-way
calling, advanced voicemail, caller line identification and fully itemized monthly billing. We also provide
national and international directory enquiry services.
In addition to a core line rental fee, we offer Size M, L and XL variants of our fixed line
telephone service as alternatives to straight usage-based billing. These packages include ‘‘Talk Plans’’
that enable customers to make unlimited local and national calls for a fixed monthly fee in addition to
the standard line rental. As of December 31, 2008, we provided on-net telephone services to
approximately 4.1 million residential subscribers.
We also provide phone service via BT’s local access network to customers not connected to our
network. As of December 31, 2008, we provided this type of telephone service to approximately 105,500
subscribers.
Business
ntl:Telewest Business retains its focus on meeting the communications requirements of U.K. public
and private sector organizations, and serving other telecommunications service providers. Through the
merger of NTL and Telewest in 2006 and the subsequent integration of their networks, we are now able
to leverage one of the most advanced national access networks in the U.K., delivering a wide portfolio
of voice and data products to business customers.
While the wider organization was rebranded to Virgin Media in 2007, ntl:Telewest Business has
retained its legacy brand. Being a business predicated upon customer relationships, a strong service
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