An immediate consequence of the dispute between BSkyB and Virgin Media (VM) is that VM customers have lost access to four Sky TV channels. Explain in detail the effect this may have on the demand for VM services. What measures could VM use to mitigate the consequences of this change
It has been observed that Virgin Media is reluctantly to make heavy investment towards the subscription of these channels, which it consider not much popular among the masses. The Virgin Media has revised its strategies, and has made directly approached the production units, seeking permission for the transmission of the popular programs, therefore the virgin Media is looking towards fostering relations with the Production Unit, and has attempted to invalidate the authority and role of the BSkyB (Ray, 2007).
It has been claimed by Virgin Media that BSkyB has increased the prices at massive level, but BSkyB has defended the rise by highlighting the fact that number of channels have also been increased. If Virgin Media's claim that the increased number of channels is not much popular among the masses, and it is only selected programs, not even channels. that are popular among the public, then it is believed that Virgin Media has not ultimate threat of closure, downsizing or financial loss.
The deadlock is less likely to affect the growth and transmission services of Virgin Media, but then if BSkyB implements comprehensive strategy of the offer channels, through marketing and public awareness, so as to secure the public attention, it is expected that Virgin Media will be under immense pressure of the masses, and will be left with no other choice but to make a deal wi ...