Virgin Media 2011 Annual Report Download - page 12

The movie on demand service was increased in October 2011 with additional titles being made available as
a bonus to Sky Movies subscribers through the launch of Sky Anytime. This movie on demand service joined the
existing subscription based movie-on-demand service ‘PictureBox,’ and pay-per-transaction service, FilmFlex.
FilmFlex offers a further 500 titles, many of which are available for rent on the same day as their DVD release.
All of our DTV customers have access to pay-per-transaction movies, which, after purchase, may be viewed
multiple times within a 48-hour window. In addition, the VOD package includes a music video service featuring
over 4,000 tracks, which subscribers to our top tier television package can view at no extra cost, or to lower tier
customers on a pay per transaction basis.
Digital Video Recorders
We offer two of the most advanced digital video recorders, or DVRs, in the U.K. Set-top boxes equipped
with DVRs digitally record television programming to a hard disk in real-time, which allows customers to play-
back, pause, fast-forward or rewind the program at any point during or for a period after the broadcast.
In 2009, we entered into a strategic partnership with TiVo to develop a next generation set-top box which
provides converged television and broadband internet capabilities. Under the agreement, TiVo is the exclusive
provider of user interface software for our next generation set-top boxes and we are the exclusive distributor of
TiVo services and technology in the U.K. The Virgin Media:TiVo service was launched in December 2010 with
mass distribution commencing in mid-2011. This “next generation” entertainment set-top box is available in both
1 TB and 500 GB sizes (recording up to 500 hours of television) and brings together television, VOD and
web video services through a single set-top box and features unique content discovery and personalization tools.
The new TiVo service, combined with the existing VOD service, makes available television shows, movies and
music videos in addition to supporting web video services such as the BBC iPlayer and YouTube. Virgin Media
TV powered by TiVo service continues to be enhanced and rolled out to customers. As of December 31, 2011 we
had approximately 435,000 TiVo customers.
The previous Virgin Media digital video recorder, or DVR, called the “V+ set-top box”, was available to our
DTV customer base and is gradually being phased out in favor of TiVo boxes. Final sales took place in the
second quarter of 2011. The V+ set-top box has 160GB of hard disk storage space (up to 80 hours of broadcast
television), is HD-enabled and has three tuners, allowing viewers to record two programs while watching a third.
Our V+ set top box customers with a HD-compatible television can also access our HD on-demand content. As
of December 31, 2011, we had approximately 1.4 million V+ set-top box customers.
Fixed Line Telephony
We provide local, national and international telephony services to our residential customers on our cable
network. We offer a basic line rental service to our cable customers for a fixed monthly fee. In addition to basic
line rental, we also offer tiered bundles of features and services, including calling plans that enable customers to
make unlimited national landline calls either during specified periods or at anytime, for an incremental fixed
monthly fee. Our customers can also make calls to Virgin mobiles free of charge and may also subscribe to
additional services such as call waiting, call blocking, call forwarding, three-way calling, advanced voicemail
and caller line identification services for an additional fee. As of December 31, 2011, we provided cable
telephony services to approximately 4.2 million residential subscribers.
Mobile Products and Services
As a mobile virtual network operator, or MVNO, Virgin Mobile provides mobile telephony services to its
customers over cellular networks owned by third parties. Our customer base comprises both contract customers,
who subscribe to our services for periods ranging from a minimum of 30 days up to 24 months, and pre-pay
customers, who top up their accounts prior to using the services and have no minimum contracted term. As of
December 31, 2011, we had approximately 3 million mobile telephony customers, of which approximately
1.5 million were contract customers.
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