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A Pivotal Week for VOOM


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10 replies to this topic

#1 OFFLINE   Nick

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Posted 28 March 2005 - 05:59 AM

This could be a pivotal week for Cablevision and its struggling VOOM satellite TV service.

Cablevision's agreement to maintain VOOM expires Thursday, March 31. The company and its chairman, VOOM backer Charles Dolan, agreed earlier in the month to keep VOOM up and running while Dolan figured out how to take over the satellite TV service from the cable company.

Cablevision was planning to shut down VOOM this week, but gave Dolan time to put together a transaction after he replaced members of the Cablevision board, among other strategic moves.

While the VOOM deadline is Thursday, "This does not necessarily mean that the service will be shut down," said Tom Eagan of Oppenheimer and Co. "We expect Cablevision to extend the agreement."

However, Eagan said long term it's likely EchoStar will buy the VOOM programming suite in addition to the satellite supporting the satellite TV service. EchoStar agreed in January to buy the VOOM satellite, known as Rainbow 1, and other satellite-related assets for $200 million.

"We doubt that EchoStar wants to 'waste' the satellite's transmission capacity on the VOOM service," Eagan said. "Moreover, after the satellite sale closes, EchoStar may look to transfer VOOM subscribers over to the DISH platform. Until then, VOOM's success could be DISH's success."

Also, this week, the first round of comments concerning EchoStar's takeover of the Rainbow 1 satellite are due at the Federal Communications Commission.

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#2 OFFLINE   Richard King

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Posted 28 March 2005 - 07:28 AM

However, Eagan said long term it's likely EchoStar will buy the VOOM programming suite

Interesting. I haven't heard anyone really "in the know" state this before. This could drive sales of 942's, etc. if it happens and Dish would then be the "leader in HDTV" for some time to come.
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#3 OFFLINE   David_Levin

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Posted 28 March 2005 - 08:26 AM

What makes you think Eagen is "in the know"?

He doesn't work for E* or Voom. He also said:

"We doubt that EchoStar wants to 'waste' the satellite's transmission capacity on the VOOM service,"

So, aren't these contradictorary statements?
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#4 OFFLINE   Richard King

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Posted 28 March 2005 - 09:08 AM

Actually, I thought the same when I read it, but then I reread and figured he meant what he said, they don't want to wast capacity with the VOOM SERVICE. He didn't say switching Voom customers over to be Dish customers receiving the former VOOM programming with Dish equipment.
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#5 OFFLINE   Richard King

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Posted 28 March 2005 - 09:10 AM

What makes you think Eagen is "in the know"?

Well, let's just say he is more in the know than most of the prognoticators that I read on the various boards. After all, he has been a satellite industry analyst for MANY years.
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#6 OFFLINE   lazaruspup

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Posted 28 March 2005 - 10:11 AM

I really hope that things don't pan out the way he is claiming. I would like to see Voom be a universal add-on suite for cable and dbs. I really don't know what type of feasibility this has.
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#7 OFFLINE   harsh

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Posted 28 March 2005 - 10:20 AM

What makes you think Eagen is "in the know"?

He doesn't work for E* or Voom. He also said:
So, aren't these contradictorary statements?

I guess it depends on how you define the "Voom Programming Suite". My take is that what he is referring to is the home grown Voom programming that Voom subs vociferously claim separates them from the other providers. Unless Voom can be made viable, there is no point in beaming all of the commonly available content up.

We all have services that our provider offers that differentiate them from the others. The question is whether Voom's are enough of a "must have". Several Voom subs have suggested that the exclusive 21 commercial-free channels aren't a deal breaker them.

#8 OFFLINE   Mike D-CO5

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Posted 28 March 2005 - 11:49 AM

Maybe they will add the Voom origional channels and the hd versions of Cinemax , Starz , Universal hd too. They could also add the hd verisons of the major networks for distant like Directv has done. You know like in the towns that the networks own the channel you can get the hd version as well. Then they could be getting their money's worth in hd. I would love to have the 61.5 sat for more hd NOW rather than wait till next year for the mpeg 4 version. This would help Dish not only compete but beat Directv right now and they could still do mpeg4 later. Then the 942 would most likely sell like crazy if you could get all that hd content now. Also Charlie could say they are still the leader in hd for a while.

#9 OFFLINE   wkomorow

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Posted 28 March 2005 - 12:27 PM

Though I agree that it would be great if Dish if were to add Voom programming, I am not certain when "now" would be. My guess is this would need FCC approval. If so, we are talking 3-6 months for approval and another 2-4 months before Dish would be ready to start rolling it out. So we are talking late this year, early next year at the earliest. On the positive side, Dish 300 and 500's are really cheap and switches are not all that expensive, so the hardware costs for updating current Dish HD subscribers would be minimal.

#10 OFFLINE   Richard King

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Posted 28 March 2005 - 01:14 PM

I would like to see Voom be a universal add-on suite for cable and dbs.

Can't be done with DBS because of the difference in transmission technology. Cable companies could receive it and send it on down the cable if they have the bandwidth available. The would also have to convert to their system technology though.
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#11 OFFLINE   lazaruspup

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Posted 28 March 2005 - 01:34 PM

Hey Rich... I realize the technology used by Voom and other dbs providers is totally different. I'm actually not talking about getting rights to the transmission but just the content. If Voom/Cablevision could figure out a deal to send the actual content to the providers, DISH, DirecTV, TWC, Comcast, etc... then Voom could be a winner. Not necessarily using the amc satellite or the rainbow satellite for the transmission but reformatting it to just being piped or uplinked to other providers. I would gladly pay 20.00 a month to get the Voom Originals in HD on my 6412 or on a new HD Tivo. :eek2: How fun would that be... Recording Kung Fu HD.... :grin:
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