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Television Master - Essay Example

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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
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Television Master Essay
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Television Master

Download file to see previous pages... 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 with BSkyB.
The proper strategy for the Virgin Media should be to approach and survey its customers, and seek their opinion, and should look forward for the remedial measures to end the dead-lock, as per the preferences of the customers. If the survey concludes that masses are more willing to view the BSkyB programs and channels, the Virgin Media has the option to increase its charges per customer for the transmission of those heavy-cost channels (Ray, 2007).
The rise is less likely to be condemned by the masses, as bouquet-purchasing is popular among the customers, and it has become a common practice to subscribe for all instead of any preferred or particular channel. Virgin Media has therefore an open option to approach the production units, and transmit such programs by purchasing the legal rights. The Virgin Media is required to behave in a cautious manner, previously ITV Digital fell victim of the increased charges by BSkyB, and had to close its units, therefore Virgin Media should ensure that it further improve and enhance its relationship with customers, so that if BSkyB fails to develop understanding with Virgin Media, the understandable customers of Virgin Media is all Virgin Media can rely on for support, and consistent and long-term affiliation.
During the course of discussion, it has been observed that BSkyB is still open for negotiation, and it is positive point for the BSkyB, as it is looking towards the reso9lution of the dispute. It is understandable that Virgin Media can not make any substantial progress with BSkyB unless BSkyB express its intention to reduce or minimize the changers. BSkyB has a strong access to the people, and it has the power to change their mind, by the launch of advertising campaigns. In this respect Virgin Media has limited options, and the execution of those limited options is itself a difficult task, therefore Virgin Media should be in direct consultation with its customers, and if customers are found approving the expected rise of BSkyB, the Virgin Media ...Download file to see next pagesRead More
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