Media: All about ... Virgin Media.(TV's plans to stage a takeover of UK commercial television Virgin Media )

Would a sale of the content arm hurt advertisers? Ian Darby investigates.

Amid the excitement surrounding ITV's plans to stage a takeover of UK commercial television, the events swirling around Virgin Media almost went unnoticed.

Last week saw the media group announce its full-year results, launch a significant investment in broadening its broadband offer and stage a board meeting to decide on a sale of its content business.

While its chief executive, Neil Berkett, announced mixed news in its results announcement, he refused to be drawn on speculation linking Virgin Media to a sale of its content arm, Virgin Media Television, a move that could raise up to pounds 500 million and help to improve Virgin Media's cashflow situation.

Ahead of the results announcement, which showed full-year revenues down 1.4 per cent to pounds 4 billion, but also that Virgin Media is on target to reach five million customers by the end of the decade, came the news on the broadband service.

Last December, Virgin had launched what Berkett termed his 'Ferrari in the fleet' in the shape of a 50mbps broadband service. It's unclear how many customers have subscribed to this offer, but now Virgin is improving broadband speeds for those customers not quite in the market for the equivalent of an Italian sports car. Its basic entry broadband package will increase from 2mb to 10mb from May, with Berkett claiming it's twice the speed of comparable services from rivals.

In addition to luring in new subscribers, Virgin Media hopes that the new entry-level broadband will lead to greater levels of customer retention as users discover the delights of high-speed broadband in delivering edifying content via the BBC iPlayer.