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ITV and Virgin Media deal on TV VOD - Venture Insights

Report Overview

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ITV and Virgin Media deal on TV VOD

PublisherEnders Analysis.
Publish Date January 8, 2009
Sector Fixed Line (Internet and Voice), FTA TV, OTT Video.
Company ITV, Virgin Media.

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ITV has agreed to provide 7 day catch-up and archive content to Virgin Media’s TV customers. By closing the last major gap in its VOD offering, Virgin Media can better exploit VOD as a differentiator with Sky, thereby assisting customer retention.

ITV also stands to gain from the circa £5-10 million per annum that it could receive for distribution of its catch-up content and the addition of 500 hours of top archive content to TV Choice, Virgin Media’s subscription VOD service. There appears no corresponding downside risk to ITV advertising revenues.

The announcement highlights the future role of Kangaroo, the proposed BBC/ITV/Channel 4 joint venture, in supplying archive material to complete Virgin Media’s VOD line up, and the remedies the Competition Commission is considering to protect wholesale VOD customers.