Why do Virgin & Sky increase prices annually?

terryally

I moved into my currently place mid last year and signed up for Virgin telephone and Broadband and was surprised to receive correspondence a few months later to say they are increasing my bill from this year. Not too long ago I got a similar letter to say prices are going up again in 2016. Sky (TV subscription) has done the same thing. They both say that it is in line with increases in the Retail Price Index.

But as far as I gather the RPI has been going downward, so how can both Virgin and Sky justify these increases?

Can someone explain this to me please?

Thanks
Terry

TadleyBaggie

terryally wrote: »

But as far as I gather the RPI has been going downward, so how can both Virgin and Sky justify these increases?

Not so, if you look at the RPI based on annual changes, it hasn't been negative since November 2009 [Source: ONS].

r2015

Because they can.

Kernow666

probably something to do with increased spending on sports rights which they pass onto us loyal customers

terryally

RPI may not be negative but it has not been increasing. Which? has said in the past that price increases have been in excess of the RPI. If so, it is unscrupulous of them to justify an increase based on RPI.

jb66

Let them do it, opens up a chance to negotiate or leave and grab some quidco from another provider!

pmduk

Because enough people pay the higher prices.

duchy

Apart from petrol I'm struggling to think of any business. product or service that have reduced prices in the last year.


Sky's biggest expense is staff costs as they employ a large workforce and wages for Sky employees haven't dropped in the last year .

Basic economics .

DavidP24

Because OFCOM is not doing it's job. I agree is a con, oil price is a big part of economy and price has come down massively.

brewerdave

They put their prices up because 1. they have to pay the inflated salaries of the (text removed by MSE Forum Team) boys in the Premiership and 2. they can because the majority of Sky/Virgin subscribers are sheep and wouldn't dream of negotiating:rotfl:

teddysmum

My cost for Sky broadband and line rental has actually gone down over the last two years, because of the above mentioned negotiations.