Virgin Media O2's Chief TV & Entertainment Officer, David Bouchier, recently shared the company's approach to navigating the challenges within the pay-TV sector at the Connected TV World Summit in London. Bouchier highlighted Virgin's early adoption of streaming integration, noting that in 2013, they were the first pay-TV platform globally to integrate Netflix directly into their platform. This forward-thinking strategy continues with the integration of the top 5 streaming services, covering 90% of the streaming market.
Bouchier explained that while free-to-air TV remains dominant for audiences aged 35 and older, a significant shift is evident in younger demographics. To address this, Virgin Media O2 is leveraging sports contracts with Sky Sports and TNT Sports. "How we take that to the next level is by adding in the must have SVODs that form in many households a more compelling proposition for content and for series and for films than our traditional pay-TV providers have done… put them together with the best sport and that is a really, really unique place for us in the market here," Bouchier stated.
Value for money is another key aspect of their strategy. Virgin Media O2 offers flexible contract lengths, ranging from 30-day options to longer-term agreements mirroring their mobile business model. "The longer you stay with us, and the model comes from our mobile business, whether that’s a 12, 24, 36 month contract, that benefit will also drive the content value for money proposition," Bouchier explained. Furthermore, the integration of YouTube into their search function enhances user experience, making it a top app alongside BBC iPlayer.
The addition of FAST channels addresses the gap left by departing linear services from Disney and Fox. "That’s what FAST has repaired. We took the decision that had technical and regulatory complications, but we took the decision that it had to sit in our EPG and our FAST channels do that," Bouchier said. The focus is on curated, high-quality content, prioritizing regional and local appeal rather than a vast number of international channels.
Virgin Media O2's Flex package allows subscribers to create custom bundles, although approximately 80% choose pre-selected options. Later this year, the platform will transition from QAM broadcast to IP transmission, introducing smaller set-top boxes with cloud-based bookmarking. This shift will significantly improve installation, eliminating the need for extensive cabling. "There is no longer a need to have that cable running around the house if you want more than one set top box," Bouchier noted. The company is also expanding its services to include fitness, books, magazines, and technology, further engaging customers.