Old news stories about Voom

[Bruce]

Check out this old story
http://www.newsday.com/business/local/newyork/ny-bzcab202932065sep20(0,6749097).story?coll=ny-nybusiness-headlines

Cablevision Outlines Satellite Plan
In FCC filings, says it plans hundreds of old, new channels

By Harry Berkowitz
STAFF WRITER

September 20, 2002


Cablevision Systems Corp. has outlined to regulators an ambitious plan for a satellite TV service offering hundreds of old and new channels ranging from Full Frontal Fashion to MGM Classics to foreign channels such as Al-Jazeera.

The company, which said last month the venture could cost less than $500,000 or as much as $2 billion, is continuing to expand its proposed scope, according to new filings with the Federal Communications Commission.

It is doing so even though Cablevision overall, which is the biggest cable operator in the New York City metropolitan area, is trying to close a funding gap of up to $1 billion in its budget for next year.

The FCC filings fill in many pieces of the puzzle that Cablevision chairman Charles Dolan and president James Dolan have refused to discuss publicly.

The plan also may help explain recent hints by Charles Dolan that he might be willing to sell at least some of the company's cable TV systems, possibly to Time Warner Cable, or form a joint venture including them.

Analysts have criticized Cablevision for pursuing the satellite venture, which would pit a new satellite service against cable TV services across the country. Satellite TV, which includes 18 million EchoStar and DirecTV subscribers, is the chief competitor to cable TV, which has 70 million customers.

Despite the wide array of TV channels listed by Cablevision in the FCC filings, including 16 focused on sports, 60 with foreign language fare, dozens featuring films, 11 covering news, 10 offering music and five with religious programming, there is no YES, given Cablevision's failure to sign a deal with the Yankees network.

The Cablevision service, called HD-SAT (for high-definition satellite) in a prototype brochure, would use 13-inch home satellite dishes, smaller than the 18-inch or 27-inch dishes now commonly used. To accommodate the plan, Cablevision has proposed to the FCC that satellite TV providers EchoStar and DirecTV, which are seeking to merge, be required to forfeit a big chunk of transmission frequencies to the venture. Cablevision said EchoStar should also provide room on one of its satellites so the venture could expand beyond the capacity of Cablevision's own A2100 satellite, which is being built by Lockheed Martin for launch next March.

Cablevision representatives met twice in the past week with FCC representatives to explain why the company should get rights to 17 extra satellite frequencies from EchoStar, in addition to two that are unallocated and 11 for which Cablevision already has rights.

Cablevision said the extra frequencies would enable it to reach all 210 "designated market areas," or major TV markets, across the country, rather than just 143. The expansion would allow it to include 40 high-definition channels nationwide as well as 320 standard-definition channels, plus four regional channels in each of 22 regions of the country and local channels in each of the 210 DMAs.

The proposed merger of EchoStar and DirectTV owner Hughes Electronics, which is part of General Motors, has run into fierce resistance from critics who say it would reduce competition. Cablevision is using that opposition to say its proposal may help solve the problem by creating a new competitor.

But EchoStar, which along with DirecTV controls more than 100 frequencies, says it has its own plans for the frequencies Cablevision wants, including more local TV stations, high-speed Internet service, high-definition TV and more international channels.

The Cablevision venture's high-definition channels could include a new one called MGM Classics featuring the studio's thousands of old movies, according to a prototype programming menu in the filings. MGM, which has a 20-percent stake in four networks controlled by Cablevision including AMC and Bravo, has been seeking to launch a new cable network featuring films.

Another channel, called Full Frontal Fashion, would likely be similar to the fare provided by Cablevision on the Metro Channel in New York. Other new channels on the roster include AMC Monsters, Bravo Performance, Comedy Theater and Sports Theater.

"The Dolans start out against a very steep curve because of the existing competition," said Jimmy Schaeffler, an analyst at pay-TV researcher The Carmel Group. "But Chuck Dolan has been in this business a long time and has come up with a lot of brilliant solutions to some overwhelming challenges."

Cablevision's proposal would include giving the venture the rights to six unused frequency licenses owned by Dominion Video Satellite, which transmits Christian religious and information programming on two other frequencies. Dominion, which sub-leases the six channels to EchoStar, says in FCC filings that it has been unable to talk to Cablevision about the idea because EchoStar, despite repeated requests from Dominion, has not agreed to do so.

I love the part about the 13" dishes,I wonder what the rain fade would be then

 

[Bruce]

more:

Rainbow DBS Woes
From Variety, by Meredith Amdur

End of the Rainbow?

New York-area cabler Cablevision got the FCC's blessing to again delay the launch of its floundering Rainbow DBS project until August 31, but the likelihood of its actually bowing a programming service or even finding a buyer for the bird seem to be dwindling by the day.

The FCC approved a request to put back the launch of the Rainbow I DBS satellite to late August based on mechanical grounds. The regulator also approved several alterations to the satellite's configuration that would allow for spot beam delivery of local programming. However, sources near the company indicate that are no plans afoot, nor a budget in place, to launch a consumer service by December 31, as required in order to retain its FCC-granted DBS license.

Rainbow DBS, whose chances of mounting a serious threat to a News Corp.-backed DirecTV or EchoStar are now considered improbable by most analysts, has limited options for the satellite, given the glut of satellite capacity currently available on the market, and even fewer once it launches the bird.

JPMorgan analyst Jason Bazinet said that while it is conceivable EchoStar (which currently uses a similar spectrum) or DirecTV could be interested in the satellite and its allotted frequencies, the probability of an imminent sale is not high. The satellite could be worth less once it takes flight, Bazinet explained, since a buyer would then either be stuck with the orbital position into which it will be launched or else have to reduce the useful life of the satellite by moving the bird to a better location.

Other possible uses for the satellite include using the bandwidth for high-definition telecasts or for general wholesale capacity.

On Wednesday, Standard & Poor's issued a detailed analysis on Cablevision's BB Negative Outlook credit rating, citing that the DBS project "may prove a distraction to management" as the company focuses on aggressively increasing its digital cable business. The ratings arbiter is also concerned that the company has yet to articulate a definitive strategy for the DBS investment and warned that its credit profile could weaken if Cablevision spends more on DBS than expected or is unable to stem cable subscriber losses, which have totaled 45,000 since the start of 2002.

Company would not elaborate on its DBS plans beyond saying it was pleased by the FCC's acceptance of its request. Cablevision has earmarked $75 million this year to get the bird into orbit.

 

[Bruce]

Cablevision DBS: HDTV and All Locals

Rainbow DBS, the Cablevision entity that wants to launch a small dish service in spectrum at 61.5 degrees, made a big push at the Federal Communications Commission Wednesday concerning its satellite TV plans.

The company has been holding onto its 11 frequencies at the orbital location for some time. Recently, Rainbow DBS has been lobbying the FCC to gain control of the orbital location, saying a merger between EchoStar and DirecTV requires another viable satellite TV competitor. Rainbow DBS has said requiring EchoStar to divest its authorizations at the location - and giving it the spectrum - would help create much-needed competition for the proposed satellite TV giant.

The biggest point coming out of the Wednesday meeting between Rainbow DBS and FCC officials - detailed in a filing at the commission - was the company's assertion that any programming for the future satellite TV service would "rival or exceed that offered by a combined EchoStar." Company officials said Rainbow DBS will provide local services for all 210 DMAs as well as national and regional HDTV programming.

In addition, Rainbow DBS officials told commission staff that it has a state-of-the-art, spot-beam satellite almost completed. Pursuant to its FCC authorization, the satellite's launch is set for March 2003, with service launch in December 2003, Rainbow DBS said.

all of this info came from the http://www.skyreport.com website

 

[Bruce]

Sept.2002:

Cablevision DBS: HDTV and All Locals

Rainbow DBS, the Cablevision entity that wants to launch a small dish service in spectrum at 61.5 degrees, made a big push at the Federal Communications Commission Wednesday concerning its satellite TV plans.

The company has been holding onto its 11 frequencies at the orbital location for some time. Recently, Rainbow DBS has been lobbying the FCC to gain control of the orbital location, saying a merger between EchoStar and DirecTV requires another viable satellite TV competitor. Rainbow DBS has said requiring EchoStar to divest its authorizations at the location - and giving it the spectrum - would help create much-needed competition for the proposed satellite TV giant.

The biggest point coming out of the Wednesday meeting between Rainbow DBS and FCC officials - detailed in a filing at the commission - was the company's assertion that any programming for the future satellite TV service would "rival or exceed that offered by a combined EchoStar." Company officials said Rainbow DBS will provide local services for all 210 DMAs as well as national and regional HDTV programming.

In addition, Rainbow DBS officials told commission staff that it has a state-of-the-art, spot-beam satellite almost completed. Pursuant to its FCC authorization, the satellite's launch is set for March 2003, with service launch in December 2003, Rainbow DBS said.

 

[Bruce]

http://www.skyreport.com/skyreport/jan2003/011603.shtm#three
Jan.03-Skyreport

Cablevision DBS Worries Wall Street

Despite recent layoffs and restructuring charges, Chuck Dolan's Cablevision continues on its quest to launch a DBS service - and that's got some on the Street mighty worried.

In a recent note to investors, Merrill Lynch analyst Jessica Reif Cohen notes that, in her opinion, "The best outcome for the (Cablevision) DBS business is an outright sale to EchoStar for $300-$500 million."

But Dolan - recently nominated as one of the "worst CEOs" by Business Week magazine - seems intent on proceeding. Says Reif, "Despite the potential for signal interference west of the Mississippi, the $1.5 billion-plus cost, and difficulty of providing a viable service with just one satellite, we believe that Cablevision intends to provide proprietary content on the DBS service and launch a third competitive U.S. satellite service."

Cablevision must launch its satellite by the end of this March or risk losing its FCC license.

 

[Bruce]

http://www.skyreport.com/skyreport/feb2003/021203.shtm#two

Cablevision Pushes Ahead DBS Efforts

Cablevision said it will continue to push forward with its DBS plans, despite a two-month delay in the launch of its first satellite - Rainbow 1 - and lingering questions about the proposed satellite TV platform.

Said CEO Jim Dolan, "As we move forward, we will continue to consider all of our options, and we will seek to maximize the value of this asset, and we will look to take advantage of strategic opportunities."

When pushed by analysts about Rainbow DBS, Cablevision executives said company plans are focused on going forward with the platform, and rolling out the service first on a regional basis before expanding coverage. Officials also said it's likely the Rainbow DBS effort will include partners.

As for asking the Federal Communications Commission for a two-month launch delay, "We do not foresee any problem with obtaining an extension," Dolan said. Lockheed Martin needs the extension, from the original date in March to May. The launch provider plans to launch the bird within the second quarter timeframe, Dolan said.

On Monday, Merrill Lynch analyst Jessica Reif Cohen said in a research note that a delay in launching the Cablevision satellite could provide the company with additional time to negotiate a sale of the DBS assets, possibly to EchoStar.

Dolan added that Cablevision will need to make an additional investment of $80 million in the Rainbow satellite platform. The company has DBS spectrum at 61.5 degrees.

 

[Bruce]

http://www.usatoday.com/money/media/2003-07-16-dbs_x.htm

Cablevision launches mysterious plan
By David Lieberman, USA TODAY
NEW YORK — Cablevision System's (CVC) plan to compete with DirecTV and EchoStar's Dish Network remains shrouded in mystery as the No. 6 cable operator launches a rocket Thursday night with the key element in that dream: a $250 million state-of-the-art satellite dubbed Rainbow 1.
"There's never been a bird as powerful," says Chairman Charles Dolan from the launch site in Cape Canaveral. Rainbow 1 will have the capacity to offer 468 channels of standard definition television. The final number will be lower because some channels will be transmitted in high definition, which takes more bandwidth.

Dolan says he'll begin selling the service nationwide on Oct. 1, with decoder boxes from Motorola. And on that date he'll finally tell all about pricing, programming, equipment and other matters.

"There's been a lot of speculation," Dolan says. "We'll be elaborate and detailed and totally accurate."

But investors are sure to have additional questions.

Although last month Cablevision said directors had "approved a plan to pursue the spinoff" of the satellite service by year's end, Dolan now says a final decision probably won't be made until December.

"We don't have to do it at all," he adds. "The board has to approve it. What the board authorized is an exploration (of a spinoff). That is our intent."

Dolan's ambiguity about this matter may create some anxiety on Wall Street. Cablevision has already spent $342 million on the new business and has committed to spending an additional $564 million.

Many analysts fear that heavily leveraged Cablevision will end up paying even more for a service that satellite executives and observers say has little chance of becoming a serious rival to EchoStar's Dish Network and DirecTV, which may soon be controlled by News Corp. CEO Rupert Murdoch.

The two services have 20 million subscribers vs. cable's 72 million.

"I see no viable business opportunity, given the assets Dolan has and the resources he has," Satellite Business News Editor Bob Scherman says.

He also scoffs at Dolan's decision to launch his satellite while he's still cutting deals with vendors.

"He's jumping out of the airplane and negotiating the price of the parachute on the way down," Scherman says.

But Dolan says his business plan calls for the satellite venture to break even before the investment tops $1 billion.

At this point, "We're operating with a staff that's heavily borrowed from Cablevision," he says.

By using the latest technology, he says he'll easily challenge DirecTV and EchoStar, which have more satellites and prime orbital positions.

"They have more transponders, but they don't have more capacity," Dolan says. "We're going to launch with more capacity than they have today."

He's also busily negotiating a deal to lease capacity on a satellite that reaches homes in the far West. They won't be able to pick up Rainbow 1, which will hover over the Atlantic Ocean near Brazil at the equator.

And Dolan's going to apply for additional orbital positions to offer broadband Internet via satellite.

"Capacity won't be an issue," he says. "It'll be a video and broadband business."