VOOM Cries Foul Over INHD and INHD2
Byline: MICHAEL BASCOMBE
Rainbow's DBS provider VOOM wants its INHD, and it doesn't think In Demand is playing fair. So, it's taken its case to the FCC, filing a program access complaint Fri against In Demand, whose shareholders include Comcast, Cox and Time Warner Cable. The complaint, first reported by Satellite Business News, claims In Demand has refused to negotiate a "commercially reasonable agreement" with VOOM for the carriage of INHD and INHD2. "We are confident that our pricing policies are consistent with the FCC and all other rules," In Demand said in a statement Mon. "The allegations contained in Rainbow's complaint are completely without merit. We will defend the complaint vigorously at the FCC and have every confidence that the FCC will find our policies consistent with all FCC rules and regulations." VOOM claims that in Sept '03 In Demand offered a fee based upon a minimum number of subs that would have worked out to $3.84/sub based upon the DBS provider's current subscription numbers. At a Sept '04 meeting, In Demand informed VOOM that it had ignored the company's counterproposal because it did not contain minimum subscriber guarantees, the complaint said. "ID made plain that its offer was on a 'take it or leave it' basis," VOOM told the FCC. VOOM doesn't believe In Demand has made minimum sub guarantees of any other operator. Worth noting that during these initial negotiations, VOOM projected its sub count would be at 300K by year-end. As of 2Q '04, it had netted 25K. Dark Side: We couldn't help but remember back to a Media Institute lunch a few years back that Rainbow DBS head Chuck Dolan spoke at, where he declared program access rules were bad for cable.
"At Cablevision we spend tens, if not hundreds, of millions developing original programming for our customers. Yet, under current regulations we are forced to share much of that programming directly with our competitors."
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