New info in SEC doc filed 9/2

[rollerfink]

The biggest issue for me is that they didn't plan ahead for high subscriber rates. They admit that their subscriber rates are way low -- but they still had to pull back advertising because they couldn't handle all the installs. It's a catch 22. They want more subscribers but they can't handle any more.

I wonder how they have overcome this issue. Or if they really have. Surely they had a room full of MBAs projecting what would happen if xxx number of people signed up in the first 12 months.

 

[Sean Mota]

"LOCAL BROADCAST TELEVISION SIGNALS ARE NOT ALWAYS AVAILABLE ON OUR SERVICE, WHICH HAS BEEN AN OBSTACLE IN SELLING OUR SERVICE AND HAS LED TO HIGH SUBSCRIBER CHURN"

This statement is very powerful. Their plan of attack is good which is to concentrate on Areas where digitals are provided and less likely to happen but as a back up, they should start putting the O&O locals on Satellite and create a local package of $4.99 to those that qualify. This way it pays for itself and can benefit those in O&O areas. Beginning with October 2004, they could do this. They will have capacity to bring these few locals.

 

[Scott Greczkowski]

Another mistake is that they are not letting people install their own equipment. I know a few people who would like VOOM, but don't want anyone touching their house or thier electronics.

Looks like the Dish Upgrade and MPEG4 WM9 upgrade is off until next year though.

 

[rollerfink]

If they go out of business do we get to keep our STBs? I'd like to take mine out into a field and pound on it with a baseball bat a la office space and the dreaded fax machine.

 

[Sean Mota]

Here are somethings that needs to be done, IMHO:

1 - Create an introductory offering $0 with 1 year commitment. (if DVR is available 2 year commitment).

2 - Promote self-installation. Get rid of the middle man. There's lots of people who could do this.

3 - Bring O&O area HD Networks via satellite. Create local package.

4 - Bring RSN package with all HD (cover the entire list). Create SportsPackage

5 - Bring INHD 1 & 2 (it is the only channel missing) or bring HDnet and make peace with Mark Cuban.

6 - Create a program by giving one month credit to customers who are able to subscribe other customers with one year commitment.

7 - Bring the rest of SD channels that are missing. Just to satisfy everyone.

8 - Advertise Advertise.

None of the above has to be done in order but they need to look at it carefully and bring a plan to do them.

 

[Dvlos]

I think delaying the dish upgrade to next year seems worse, it would most certainly bottleneck Voom's growth. Adding the dish and the new Sat, they could immediately offer network locals in SD at least, as well as secure more "cable favorites" like HGTV, DIY, G4Tech etc... to keep adding spice to their lineup. Also it would be easier to do this NOW with 28-30k subs than next year.

The only way I see them delaying the new dish is to get the new DVR out which will undoubtedly increase demand especially if they come out with a killer payment/lease plan. Also I agree with Scott, they could SO save money if I could order the dish, and with you guys* help I'd rather do a Self-Install anyway.

*Because you guys are the best.

 

[Sean Mota]

The new dish is this year. MPEG-4/WM9 is next year. No?

 

[Seanb61]

The new dish is this year. MPEG-4/WM9 is next year. No?

In particular, it is likely that we will face
operational issues when we transition our compression technology from MPEG-2 to
MPEG-4, which is expected to occur in the first quarter of 2005. (January to march of 2005)

 

[vurbano]

So right now, VOOM major outlet is word of mouth, their website and their distributors.

And that is why it will fail if it doesnt change and change fast.

 

[txcruiser]

For those that are going... take lots of pictures of VOOM this week at the CEDIA show in Indianapolis, Indiana.
This just might be your only and last chance to see the "Voom Guy".

With subscriber numbers so dismal and the churn rate so sky high, even the deepest of pockets can't last another year or two. I think it's more like paycheck to paycheck.

 

[Sean Mota]

txcruiser,

the operational budget has already been done for 1-2 years. So do not count on waving the flag too soon. Not yet.

 

[riffjim4069]

Personally, I agree with VOOMs decision to focus on areas with reliable over-the-air DTV and O&Os - much more favorable demographics.

Plan of Action?

1. Provide local SD channels for 50 selected DMAs on Americom-6.
2. Provide all customers with the Sensar II or an appropriate antenna for their area (to receive HD locals) and stop the antenna upgrade hell...just as long as they are covered with their local SD.
3. Place O&O HD channels on Americom-6.
4. Stay out of smaller DMAs, non-O&Os, and troubled DTV areas.

As the business grows, VOOM can then reevaluate their advertising plans and markets to include adding additional SD and HD locals.

 

[Bruce]

Here are somethings that needs to be done, IMHO:

1 - Create an introductory offering $0 with 1 year commitment. (if DVR is available 2 year commitment).

2 - Promote self-installation. Get rid of the middle man. There's lots of people who could do this.

3 - Bring O&O area HD Networks via satellite. Create local package.

4 - Bring RSN package with all HD (cover the entire list). Create SportsPackage

5 - Bring INHD 1 & 2 (it is the only channel missing) or bring HDnet and make peace with Mark Cuban.

6 - Create a program by giving one month credit to customers who are able to subscribe other customers with one year commitment.

7 - Bring the rest of SD channels that are missing. Just to satisfy everyone.

8 - Advertise Advertise.

None of the above has to be done in order but they need to look at it carefully and bring a plan to do them.

And fast,if not use the money they would lose on Voom towards something else(MVDSS spectrum-hundreds of channels,broadband,low cost infrastructure

 

[HeavyC]

As more and more RSN's go HD...it's going to kill VOOM not to have them. You can't be the HD leader and not offer a comprehensive HD sports package.

 

[Walter L.]

Here are somethings that needs to be done, IMHO:

1 - Create an introductory offering $0 with 1 year commitment. (if DVR is available 2 year commitment).

2 - Promote self-installation. Get rid of the middle man. There's lots of people who could do this.

3 - Bring O&O area HD Networks via satellite. Create local package.

4 - Bring RSN package with all HD (cover the entire list). Create SportsPackage

5 - Bring INHD 1 & 2 (it is the only channel missing) or bring HDnet and make peace with Mark Cuban.

6 - Create a program by giving one month credit to customers who are able to subscribe other customers with one year commitment.

7 - Bring the rest of SD channels that are missing. Just to satisfy everyone.

8 - Advertise Advertise.

None of the above has to be done in order but they need to look at it carefully and bring a plan to do them.

AMEN!!! I'll add:

9 - Increase the bandwidth of all HD channels so that VOOM becomes the undisputable leader in PQ. I'm sure that will attract/retain a lot of HD junkies!!!

 

[txcruiser]

Even though there are some good ideas to "save" Voom, does anyone really believe that posting them here (even though it's "The Internet's Largest Voom Forum") is going to make much of a difference? The big decisions being made seem to be coming from an office with real expensive carpeting in a tall building (without internet connectivity).

 

[Bruce]

And low oxygen levels.

 

[Sean Mota]

So accordingly, we might as well packed the internet and go back to our houses and wait till the big moment comes to fruition... You've got to be kidding. Information flies these days and if you don't think information reaches even the highest level, you have not learned anything all this time.

 

[Bruce]

It is not that people do not read the information,it's what they do about the information they read.

 

[Sean Mota]

That can happen anywhere any time. But still people look and said ummm. This is the way customers think?

Again we can throw all these ideas on the table and yet we can not assume or speculate that VOOM has its own which makes more sense from their business model. I threw ideas to the table but am I in the decision making? nope. I do not even know if they look at these and say these can not be done because of the following...

So again we can all talk about our own speculation and ideas but VOOM has its own that looks at itself from a better point of view. We just hope that some of this may help (looking at them from our point of view).