Strategy Verdict - Media owner Virgin Media TV

by Media Week, Media Week 19-Jun-07

Strategy: Launch of Virgin 1

Virgin 1 - it's good to see Virgin has gone with an inspiring and
revolutionary name with the launch of its new free-to-air channel.

Seriously though, this launch could be exactly what the multi-channel

environment needs: a credible rival to challenge Sky's dominance as the

largest satellite media owner in the UK. It's a signal of intent that
Virgin is prepared to resolutely stick to its guns in its carriage
battle with Sky.

The fact that Virgin 1 obtained the exclusive rights to US drama The
Sarah Connor Chronicles and becomes the new home for everything Star
Trek is likely to pull in viewers. In the digital world we live in where
content is king, Virgin's 1's pledge to offer richer experiences for
viewers via a multimedia approach increases its potential to
succeed.

- If it can appeal to an audience that Sky 1/2/3 doesn't cater for, it
can also bolster sales house IDS's position in the marketplace while
strengthening Virgin's hand both in its battle against Sky and in
maintaining its own customer base.

- The fact that the channel will be available on Freeview is a huge
plus. With Freeview now having sold 15 million boxes and with Sky 1
absent from this platform, Virgin 1 has an opportunity to establish
itself as a first port-of-call for many casual "flickers".

The only negative at the moment is that it will be taking over Ftn's
slot on the EPG, which is lost on the fourth page down. With Sky 1
positioned just behind the five terrestrial channels, Virgin will
probably require a very effective marketing campaign to achieve
cut-through. Even though most of us have affinity with the Virgin brand
in some shape or form, we'll need to be told exactly where to find
it.

Whatever happens, this will be an interesting few months in TV land and,
who knows, Virgin 2 might not be far away.

3 out of 5.

Review by Michael Cook, account director, Zed Media.