Virgin Media 2012 Annual Report Download - page 10

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homes as part of the innovation partnership we share with the BBC in which we aim to create a next-generation TV
experience.
In November 2012, we launched Virgin TV Anywhere, an innovative internet streaming TV service that allows our TV
customers to stream up to 45 live TV channels, including Sky Sports, and watch more than 4,000 hours of TV On-
Demand through their web browser, anywhere with a broadband connection. Customers are able to also discover
new shows with recommendations and ratings. As an exclusive to our TiVo customers, those with iPad, iPhone or
iPod Touch devices can watch up to 25 live TV channels, manage their TiVo box and discover new shows with these
devices. And when in the home, these devices can act as a remote control for their TiVo boxes. Virgin TV Anywhere
is available at no extra cost to our TiVo customers.
TiVo and 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.
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, with the 1TB version 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 TiVo box is HD-enabled and has three tuners,
allowing viewers to record three programs while watching a fourth they previously recorded. The 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, 2012 we had approximately 1.3 million TiVo customers.
Under a strategic partnership agreement entered in to in 2009, TiVo is the exclusive provider of user interface software
for our next generation set-top boxes which provide converged television and broadband internet capabilities, and we
are the exclusive distributor of TiVo services and technology in the U.K.
The previous Virgin Media 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. 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, 2012, we had approximately 1.2 million V+ set-top box customers.
Virgin TV On Demand
Our VOD service, Virgin TV On Demand, provides our customers with instant access to a wide selection of premium
movies, television programs, music videos and other on-demand content including live pay-per-view, or PPV, events.
Content is available in broadcast SD, HD and in 3D. Our HD content is available to all of our TV customers (excluding
analogue TV customers) who have a HD box, in line with their subscription at no additional charge. Viewers can watch
programs instantly, without the need for buffering, and can freeze-frame, fast-forward and rewind the content at will.
This gives our customers increased control over the content and timing of their television viewing. Additionally, our
cable network enables us to provide VOD content to our customers with no concurrent degradation of their broadband
speed. We believe the range of content offered by our VOD service is a key driver in discouraging customer churn.
The primary categories of content available within Virgin TV On Demand are television programming, movies (on a
PPV and premium subscription basis) and music videos. A selection of content, including our 'catch-up' television
service, is available free of charge to all of our TV customers. The BBC iPlayer is the largest service we offer, enabling
viewers to view more than 700 hours of BBC programs. Virgin TV's Catch Up On Demand service also includes content
from 4OD, Demand Five and ITV Player.
Subscription Video On Demand
We also offer our television customers basic subscription VOD, or SVOD, with a selection of content that increases
in volume in line with the customer's DTV subscription tier.
In October 2011, Sky Anytime (now Sky On Demand) was added to the service, allowing customers to access
approximately 1,000 hours of television content from across Sky's range of basic channels, and around 500 movie
titles being made available as a bonus to Sky Movies subscribers. This movie on-demand service joined the existing
premium subscription based movie-on-demand service 'PictureBox'. Other content providers include WarnerTV, BBC
Worldwide, Sony, Viacom, NBCU and AETN. Tailored advertising is also inserted across many providers within the
basic TV SVOD and free catch-up services.
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