Virgin Media 2013 Annual Report Download - page 9

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I - 7
Subscription Video On Demand. We offer our television customers basic subscription digital cable-on-demand, or SVOD,
with a selection of content that increases in number in line with the customer’s digital cable 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 BSkyB’s range of basic channels, and around 500 movie titles being made available
as a bonus to Sky Movies subscribers. This service joined an existing SVOD movie 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.
The digital cable-on-demand 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, or PPT, basis.
Virgin Movies. Our PPT movie service, Virgin Movies, offers a further 500 titles from the major studios, many of which are
available for rent on the same day as their DVD release. All our digital cable customers have access to Virgin Movies, which,
after purchase, may be viewed multiple times within a 48-hour window. In 2012, functionality was added to the online version
of Virgin Movies, allowing customers to rent titles and watch them when offline. The Virgin Movies service is available online
to both subscribers and non-subscribers to our digital cable service.
Virgin TV Anywhere
In November 2012, we launched Virgin TV Anywhere, the U.K.’s most comprehensive internet streaming TV service that
allows our TV customers to stream up to 90 live TV channels, including Sky Sports, and watch more than 4,000 hours of Virgin
TV On-Demand through their web browser, anywhere in the U.K. with a broadband connection. Customers are able to also discover
new shows with customized recommendations and ratings. Our TiVo customers with iOS or Android mobile devices can watch
up to 67 live TV channels, manage their TiVo box and discover new shows with these mobile devices. And when in the home,
these mobile devices can act as a remote control for their TiVo boxes. Virgin TV Anywhere is available at no extra cost to our
digital cable customers.
Fixed-line Telephony
We provide local, national and international telephony services to our residential customers on our twisted copper network.
We offer a basic line rental service to our cable customers for a fixed monthly fee. In addition, 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 anytime, for an incremental fixed monthly fee. Our fixed-line customers can
also make calls to mobile customers 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. In October
2013, we launched a mobile handset application called SmartCall that allows customers to call landlines and mobile phones using
Wireless Fidelity, or Wi-Fi, networks, thus offloading many mobile calls onto the fixed network. As of December 31, 2013, we
provided cable telephony services to approximately 4.1 million residential subscribers.
Mobile
Our mobile communication services are provided using the mobile network owned by EE Limited (EE) through an MVNO
arrangement. EE currently operates 2G, 2.5G, 3G, 3.5G and 4G networks in the U.K. 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 Android-based, Blackberry and Apple iOS-based
smartphones, and mobile broadband services which complement our fixed broadband offering.
Our customer base comprises both postpaid customers, who subscribe to our services for periods ranging from a minimum
of 30 days for a SIM-only contract to up to 24 months for contracts taken with a subsidized mobile handset, and prepaid customers,
who top up their accounts prior to using the services and have no minimum contracted term. As of December 31, 2013, we had
approximately 3.0 million mobile customers, of which approximately 1.9 million were postpaid customers.