People don't want land line phones anymore. This undermines the company's greatest advantage - bundle packages. If customers don't want a phone line in their home, they are likely to pay for TV and Broadband, and then use a separate mobile carrier. When they make this choice, they might to turn to BSkyB's satellite TV (with its wider range of channel offerings) and to market leader BT Group for internet access. Virgin, smaller than its competitors in both of these markets, will be left out in the cold.
Virgin Media does not have access to premium content, and competitor British Sky Broadcasting shows no signs of allowing this to change. BSkyB and Virgin have been in a public dispute over the rights to sporting events, popular movies, and other entertainment content, with Virgin asking the government to intervene on its behalf. Although Virgin has had some limited rulings in its favor, the facts remain that BSkyB has exclusive rights to the most popular shows, the best pay-TV channels in the UK, and a much higher market share with which to leverage its bids for content. Currently, Virgin Media charges its users an extra fee for access to popular BSkyB channels, and then pays its rival in order to use this package. This is not a competitive strategy in the long term.