Devilfish
13th February, 2008, 03:55 PM
Virgin Media's acting chief executive Neil Berkett has reaffirmed its plans to focus on broadband rather than challenge Sky for premium programming such as sport and movies.
He said the "hero product" could move Virgin ahead particularly through on-demand entertainment, though he conceded Sky has made a strong move into broadband.
Berkett, who took the reins from Steve Burch last year but has not been confirmed as a permanent successor, added: "In premium TV we don't have an advantage and the profit pool is stagnating.
"Unless there's a change in the regulatory landscape you won't see us put shareholder capital in premium content, although I happen to think there should be a change in the regulatory landscape."
However, he warned that Virgin must keep its hand in providing content: "The biggest mistake we could make in broadband would be to become a utility, and therefore how we ensure we are not just a pipe is absolutely critical in evolving the strategy. Content control and content in some shape or form has to be a critical component of that."
Berkett, speaking at a Broadcasting Press Guild lunch, also commented on his company's attempt to merge with ITV last year.
"The bid for ITV was a moment in time, which was a view of the apparent value of the asset," he said, without ruling out other mergers and acquisitions. "The market is completely different today from what it was then.
"For us to consider anything in terms of acquiring an ITV look-a-like, we would have to view it on its merits."
He said the "hero product" could move Virgin ahead particularly through on-demand entertainment, though he conceded Sky has made a strong move into broadband.
Berkett, who took the reins from Steve Burch last year but has not been confirmed as a permanent successor, added: "In premium TV we don't have an advantage and the profit pool is stagnating.
"Unless there's a change in the regulatory landscape you won't see us put shareholder capital in premium content, although I happen to think there should be a change in the regulatory landscape."
However, he warned that Virgin must keep its hand in providing content: "The biggest mistake we could make in broadband would be to become a utility, and therefore how we ensure we are not just a pipe is absolutely critical in evolving the strategy. Content control and content in some shape or form has to be a critical component of that."
Berkett, speaking at a Broadcasting Press Guild lunch, also commented on his company's attempt to merge with ITV last year.
"The bid for ITV was a moment in time, which was a view of the apparent value of the asset," he said, without ruling out other mergers and acquisitions. "The market is completely different today from what it was then.
"For us to consider anything in terms of acquiring an ITV look-a-like, we would have to view it on its merits."