Virgin Media 2012 Annual Report Download - page 11

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10
The VOD package also includes a music video service featuring over 5,000 tracks, which is available to subscribers
to our top tier television package at no extra cost, or to lower tier customers on a pay per transaction basis.
The movie on-demand service has both premium SVOD and Transactional VOD, or TVOD, components.
Virgin Movies
Our pay-per-transaction movie service, FilmFlex, was rebranded as Virgin Movies in September 2012, with Virgin
Media taking more active control of the scheduling and marketing of the transactional VOD service. It continues to
offer a further 500 titles from all the major studios, the majority 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 2012 'Download to Rent' functionality was added to the online version
of Virgin Movies, allowing customers to rent titles and watch them when offline. This, like the rest of Virgin Movies'
online service, is available to non-Virgin Media subscribers.
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 call tariffs, features and services, including calling plans that enable customers to make unlimited
national landline calls and calls to mobile telephones 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. We also intend to launch a mobile handset application that will allow
customers to call landlines and mobile phones using wifi networks. As of December 31, 2012, we provided cable
telephony services to approximately 4.2 million residential subscribers.
Mobile Products and Services
In 2012, we continued to focus on increasing our proportion of higher value contract customers, improving access to
content via our mobile platform, expanding our range of higher value mobile handsets and cross-selling into homes
already connected to our cable network. We continued to promote the use of our mobile platform to view internet and
television content by introducing features such as easier access to social networking applications via the mobile
handset.
As a mobile virtual network operator, or MVNO, we provide mobile telephony services to our 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, 2012, we had approximately
3.0 million mobile telephony customers, of which approximately 1.7 million were contract customers.
We offer a broad range of mobile communications products and services, including mobile voice services and data
services, such as SMS, picture messaging, games, news and music services. We also offer a broad range of handsets,
including Blackberry and Android based smartphones, and mobile broadband services which complement our fixed
broadband offering. Our services are delivered over 2G, 2.5G, 3G and 3.5G platforms provided by our network partner,
EE.
Non-cable Products and Services
We also provide broadband and telephony services to residential customers outside of our cable network, or non-
cable customers, over third-party telecommunications networks. Our non-cable broadband internet services are
provided via BT's local access network and unbundled BT exchanges from Cable & Wireless plc, or C&W. We offer
various price and feature packages, including broadband service provided over asymmetric digital subscriber line, or
ADSL, technology. As of December 31, 2012, we had 192,800 non-cable broadband subscribers. We also provide
fixed line telephony service to non-cable customers via BT's local access network. As of December 31, 2012, we
provided non-cable fixed line telephone service to 130,500 subscribers.
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