In a surprise development it is being revealed that Virgin Media has seen a slowdown in broadband signups in the first quarter of 2009. New signups totalled just over 47,000 against a figure of just over 88,000 in the same quarter last year although the short-term impact of the recession could be a significant reason for the reduction. However, the company is not about to sit back on its laurels and has announced plans for significant developments in the future.
One interesting element which appears in the “small print” of today’s announcement is the potential for a significant increase in the budget for Web TV. Web TV, otherwise known as IPTV, offers TV programmes over the Internet although so far the take up numbers have been very disappointing. However, in a move to differentiate itself from the masses of the UK broadband market, Virgin Media is looking to introduce on-demand programming, web based entertainment and interactive features, very much like the company’s cable TV operations.
Virgin Media, along with Sky TV, has a distinct advantage over many other competitors because it already has access to significant material and content which can be relayed over the Internet. It will be interesting to see how this particular area develops in the months and years to come.