Virgin Media 2011 Annual Report Download - page 7

PART I
ITEM 1. BUSINESS
Overview
We are a leading entertainment and communications business, being a “quad-play” provider of broadband
internet, television, mobile telephony and fixed line telephony services that offer a variety of entertainment and
communications services to residential and commercial customers throughout the U.K. We are one of the U.K.’s
largest providers of residential broadband internet, pay television and fixed line telephony services by number of
customers. We believe our advanced, deep fiber access network enables us to offer faster and higher quality
broadband services than our digital subscriber line, or DSL, competitors. As a result, we provide our customers
with a leading next generation broadband service and one of the most advanced TV on-demand services available
in the U.K. market. As of December 31, 2011, we provided services to approximately 4.8 million residential
cable customers on our network. We are also one of the U.K.’s largest mobile virtual network operators by
number of customers, providing mobile telephony service to approximately 1.5 million prepay mobile customers
and approximately 1.5 million contract mobile customers over third party networks. In addition, we provide a
complete portfolio of voice, data and internet solutions to businesses, public sector organizations and service
providers in the U.K. through Virgin Media Business.
Our reporting segments are based on our method of internal reporting along with the criteria used by our
chief executive officer, who is our chief operating decision maker, or CODM. These mechanisms enable us to
evaluate segment performance, the availability of separate financial information and overall materiality
considerations. We have two reporting segments, Consumer and Business, as described below:
•Consumer (84.0% of our 2011 revenue): Our Consumer segment includes the distribution of
television programming over our cable network and the provision of broadband and fixed line
telephone services to residential consumers, both on and off our cable network. Our Consumer segment
also includes our mobile telephony and mobile broadband operations, provided over third party mobile
networks
•Business (16.0% of our 2011 revenue): Our Business segment includes the voice and data
telecommunication and internet solutions services we provide through our cable network and third
party networks to businesses, public sector organizations and service providers.
For financial and other information on our segments, refer to note 17 to the consolidated financial
statements of Virgin Media Inc. included elsewhere in this annual report.
Recent Developments
Disposals
On September 30, 2011, we completed the disposition of our 50% interest in the UKTV companies to a
subsidiary of Scripps Networks Interactive, Inc.
Launch of TiVo
In December 2010, we launched TiVo set-top boxes (with associated software, including middleware),
following a strategic partnership with TiVo Inc., or TiVo, entered into in 2009 to develop a next generation
set-top box which provides converged television and broadband internet capabilities. Under the agreement with
TiVo, 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 TiVo system brings together television,
on-demand and web services through a single set-top box and specialized content discovery and personalization
tools. As of December 31, 2011, we had approximately 435,000 TiVo customers. The Virgin Media TV powered
by TiVo service continues to be enhanced and rolled out to customers.
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