Rainbow Filed form 10 yesterday....big news!
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As far as DTV/HDTV locals, time is in VOOM's favor.
The technology for off-air reception improves every year, and could see a significant boost when the LINX "Casper" demodulator ships in September, 2005. Over time, more and more networks will broadcast their signals in higher power, thereby helping to improve range and reception with smaller, less obtrusive antennas. At some point down the road, technology may allow use of smaller antennas built into the back of satellite dishes.
The technology for off-air reception improves every year, and could see a significant boost when the LINX "Casper" demodulator ships in September, 2005. Over time, more and more networks will broadcast their signals in higher power, thereby helping to improve range and reception with smaller, less obtrusive antennas. At some point down the road, technology may allow use of smaller antennas built into the back of satellite dishes.
more great news
" Dish. Subscribers to our service receive the satellite signal from
an 18" dish antenna and, for local digital broadcast signals, through an off-air
antenna. In order to take advantage of our VOOM programming from both our owned
satellite, Rainbow 1, and our leased transponders on the Americom-6 satellite,
all of our subscribers will need to use a single elliptical dish antenna
measuring approximately 35" wide by 20" high. We are currently seeking proposals
from manufacturers for these antennas. We intend to switch over our existing
subscribers on a phased basis at our expense.
Satellite Receiver. The dish antennas are connected to a satellite
receiver (IRD) designed and manufactured for us by Motorola. Our initial
purchase order from Motorola was for 40,000 receivers, which have been delivered
to us and over 40,000 additional receivers are on order as of April 30, 2004.
Without modification, the VOOM(SM) receiver is incompatible with our
competitors' systems. The initial receiver uses MPEG-2 compression technology
but can be upgraded to MPEG-4 technology with a plug-in card, which is expected
to be available in the fourth quarter of 2004. The Motorola receiver is the only
receiver on the market that is designed to be easily upgradeable to MPEG-4.
Customers will not need to replace their receivers to upgrade to MPEG-4. MPEG
compression condenses the data received from the satellite signal and thereby
facilitates transmission of the signal. The upgrade to MPEG-4 technology will
provide transmission quality similar to that of MPEG-2, but with more efficient
compression and delivery of the signal, thereby allowing us to increase our
standard definition channel capacity by up to 100%. We believe that there will
be a further upgrade of MPEG technology thereafter, which will allow us to
increase our high-definition programming capacity."
" Dish. Subscribers to our service receive the satellite signal from
an 18" dish antenna and, for local digital broadcast signals, through an off-air
antenna. In order to take advantage of our VOOM programming from both our owned
satellite, Rainbow 1, and our leased transponders on the Americom-6 satellite,
all of our subscribers will need to use a single elliptical dish antenna
measuring approximately 35" wide by 20" high. We are currently seeking proposals
from manufacturers for these antennas. We intend to switch over our existing
subscribers on a phased basis at our expense.
Satellite Receiver. The dish antennas are connected to a satellite
receiver (IRD) designed and manufactured for us by Motorola. Our initial
purchase order from Motorola was for 40,000 receivers, which have been delivered
to us and over 40,000 additional receivers are on order as of April 30, 2004.
Without modification, the VOOM(SM) receiver is incompatible with our
competitors' systems. The initial receiver uses MPEG-2 compression technology
but can be upgraded to MPEG-4 technology with a plug-in card, which is expected
to be available in the fourth quarter of 2004. The Motorola receiver is the only
receiver on the market that is designed to be easily upgradeable to MPEG-4.
Customers will not need to replace their receivers to upgrade to MPEG-4. MPEG
compression condenses the data received from the satellite signal and thereby
facilitates transmission of the signal. The upgrade to MPEG-4 technology will
provide transmission quality similar to that of MPEG-2, but with more efficient
compression and delivery of the signal, thereby allowing us to increase our
standard definition channel capacity by up to 100%. We believe that there will
be a further upgrade of MPEG technology thereafter, which will allow us to
increase our high-definition programming capacity."
Our Rainbow DBS business received authorization from the Federal
Communications Commission, or FCC, to construct, launch and operate five fixed
service, Ka-band communications satellites that could be used to provide
additional services, including data and video applications. Rainbow DBS also
invested $85 million, and owns a substantial interest in an entity that recently
acquired licenses from the FCC
Communications Commission, or FCC, to construct, launch and operate five fixed
service, Ka-band communications satellites that could be used to provide
additional services, including data and video applications. Rainbow DBS also
invested $85 million, and owns a substantial interest in an entity that recently
acquired licenses from the FCC
The MVDDS
signal is transmitted from local, ground based, microwave towers, with enough
bandwidth for hundreds of channels and high-speed Internet service. We believe
that MVDDS frequencies could be used in conjunction with our satellite business
to provide local broadcast signals or two-way Internet services. At this point,
however, we cannot provide any assurance that the frequencies could be used
successfully for this or any other purpose.
signal is transmitted from local, ground based, microwave towers, with enough
bandwidth for hundreds of channels and high-speed Internet service. We believe
that MVDDS frequencies could be used in conjunction with our satellite business
to provide local broadcast signals or two-way Internet services. At this point,
however, we cannot provide any assurance that the frequencies could be used
successfully for this or any other purpose.
Prior to the Distribution, we will enter into several agreements
with Cablevision (and certain of its subsidiaries and affiliates) in connection
with, among other things, employee benefits, tax, interim services and a number
of on-going commercial relationships. We will also enter into affiliation
agreements with certain of the cable programming businesses that will be
retained by Cablevision, including fuse, MSG Network and various other
regional/sports programming networks and our Mag Rack, Uncensored On Demand and
World Picks services will enter into affiliation agreements with Cablevision.
RNC has entered into services agreements with certain programming services of
Cablevision.
with Cablevision (and certain of its subsidiaries and affiliates) in connection
with, among other things, employee benefits, tax, interim services and a number
of on-going commercial relationships. We will also enter into affiliation
agreements with certain of the cable programming businesses that will be
retained by Cablevision, including fuse, MSG Network and various other
regional/sports programming networks and our Mag Rack, Uncensored On Demand and
World Picks services will enter into affiliation agreements with Cablevision.
RNC has entered into services agreements with certain programming services of
Cablevision.
Ken F said:
This is not true. If you read the financial statements you will see that Dish made money. The "loss" was repaying off bonds. Last quarter Dish paid off 1,423,351,000 in debt early!!! (http://www.sec.gov/Archives/edgar/data/1001082/000095013404006764/d15062e10vq.htm). They paid off bonds due in 2009, 5 years early. They made solid money in 2003, and have had an operating profit since 2001. Since the merger failed, Dish has been paying off tons of debt, they still have 5.6billion in debt to pay.
DIRECTV did not have to worry about profits too much under GM, but they had cash flow. I expect they will be more aggressive and end up with a net profit under Fox.
On the VOOM front I hope they find a better supply of their "superdish" than Dish.
Standard definition and high-definition are two formats of
displaying digital television, with high-definition television offering more
enhanced vertical and horizontal resolution and higher quality stereo sound as
compared to standard definition television. High-definition channels display
pictures that contain significantly more detail, resulting in much "crisper"
pictures. When we transfer to MPEG-4 standard definition compression, which we
anticipate occurring the fourth quarter of 2004, we will nearly double our
capacity to deliver standard definition programming. Similarly, with the
implementation of MPEG-4 high-definition compression, which we anticipate
occurring in the fourth quarter of 2005, we will increase our high-definition
capacity by 50%. For example, once the MPEG-4 conversion for standard definition
and high-definition is complete, we will be able to offer a package of up to 58
high-definition channels and 176 standard definition services. However, we have
not yet decided how we will allocate such increased capacity between standard
and high-definition but expect to make that determination during 2005 based upon
our perception of consumer preferences at that time.
The additional transponder capacity we have acquired through our
lease on Americom 6 would give us the capability based upon MPEG-2 compression
to offer
58
<PAGE>
either 39 high-definition channels or 156 standard definition channels or a
combination of high-definition and standard definition channels.
Market for HDTV
We believe that the market for HDTV is growing rapidly and presents
an attractive opportunity for a satellite-based service. According to a study by
the Consumer Electronics Association released in October 2003, 12 million
consumers are expected to have purchased HDTV products by February 2005. In
addition, the same survey estimates that approximately 30 million consumers
consider themselves likely purchasers of HDTV products within the next 3 years.
This growth in popularity of HDTV is expected to be fueled by
increased customer appreciation of the high picture resolution and enhanced
audio quality combined with a decline in prices for HDTV capable televisions and
by an increase in the number and diversity of HDTV programming services expected
to become available. In addition, the FCC has required certain upgrades in new
televisions from the current analog to the more advanced digital high-definition
technology that potentially will facilitate a more widespread distribution of
HDTV.
displaying digital television, with high-definition television offering more
enhanced vertical and horizontal resolution and higher quality stereo sound as
compared to standard definition television. High-definition channels display
pictures that contain significantly more detail, resulting in much "crisper"
pictures. When we transfer to MPEG-4 standard definition compression, which we
anticipate occurring the fourth quarter of 2004, we will nearly double our
capacity to deliver standard definition programming. Similarly, with the
implementation of MPEG-4 high-definition compression, which we anticipate
occurring in the fourth quarter of 2005, we will increase our high-definition
capacity by 50%. For example, once the MPEG-4 conversion for standard definition
and high-definition is complete, we will be able to offer a package of up to 58
high-definition channels and 176 standard definition services. However, we have
not yet decided how we will allocate such increased capacity between standard
and high-definition but expect to make that determination during 2005 based upon
our perception of consumer preferences at that time.
The additional transponder capacity we have acquired through our
lease on Americom 6 would give us the capability based upon MPEG-2 compression
to offer
58
<PAGE>
either 39 high-definition channels or 156 standard definition channels or a
combination of high-definition and standard definition channels.
Market for HDTV
We believe that the market for HDTV is growing rapidly and presents
an attractive opportunity for a satellite-based service. According to a study by
the Consumer Electronics Association released in October 2003, 12 million
consumers are expected to have purchased HDTV products by February 2005. In
addition, the same survey estimates that approximately 30 million consumers
consider themselves likely purchasers of HDTV products within the next 3 years.
This growth in popularity of HDTV is expected to be fueled by
increased customer appreciation of the high picture resolution and enhanced
audio quality combined with a decline in prices for HDTV capable televisions and
by an increase in the number and diversity of HDTV programming services expected
to become available. In addition, the FCC has required certain upgrades in new
televisions from the current analog to the more advanced digital high-definition
technology that potentially will facilitate a more widespread distribution of
HDTV.
Here's more: VOOM will have $$$ for next 12 months:
At December 31, 2003, the Company has reported current assets of $221,626 and
current liabilities of $492,100. Current liabilities includes $308,194 of
accounts payable to affiliates, net. As described in Note 16, a significant
portion of this balance has been or will be contributed to equity prior to the
spin off. In 2004, the Company expects to use net cash flows generated from
operating activities from its Rainbow Programming and Rainbow Cinemas segments
to fund the cash needs of its Rainbow DBS segment, a business with significant
cash requirements that has limited access to funding, given its early stage of
operations.
Funding needs for Rainbow DBS operations in 2004, which reflect capital
investment, operating losses, and funds required to develop its proprietary
VOOM(SM) HD programming channels, are expected to total approximately $482,000
(unaudited), including the approximately $85,000 Rainbow DBS invested in an
entity that acquired licenses from the FCC to provide multichannel video
distribution and data services. Of this amount, approximately $237,000
(unaudited) is being provided by Cablevision as an equity investment on or prior
to the date of the spin off. In addition, Rainbow Media Holdings LLC, a wholly
owned subsidiary of Cablevision, has the ability to borrow up to $100,000 under
its credit agreement (subject to covenant compliance and availability) and, if
necessary prior to the spin off, will use proceeds of those borrowings to make
equity investments in Rainbow DBS. Also, a bank has provided a commitment to
purchase $250,000 of Rainbow Media Holdings senior subordinated debentures, the
proceeds of which, if necessary prior to the spin off, will be invested in
Rainbow DBS (subject to covenant compliance and availability). The Company
believes that these investments will be sufficient to fund the cash requirements
of the Company, including Rainbow DBS, for the next twelve months.
All of the borrowings under the Rainbow Media Holdings credit facility as well
as any amounts drawn under its $250,000 subordinated debt financing will be
required to be repaid prior to the date of the spin off. The Company expects the
funds necessary for that repayment to come from new debt issued by AMC, IFC and
WE or a holding company that owns the interest in those companies. The Company
anticipates that the remaining proceeds of the financings could, subject to
certain limitations and financial covenants, be used by the borrowers to make
investments in Rainbow DBS. The ability of AMC, IFC and WE to invest in Rainbow
DBS will be primarily subject to (i) compliance with a total debt to cash flow
covenant, based on the cash flow of AMC, IFC and WE, and (ii) annual and
cumulative investment basket limitations on the amounts available for
distribution and investment. The need to finance the development of the Rainbow
DBS business will limit the funding available to the Rainbow Programming
businesses for additional programming development activities.
There can be no assurances as to the ability of the Company, Rainbow Media
Holdings, AMC, IFC or WE to secure any of this new financing. If sufficient
financing cannot be raised prior to the spin off, the spin off will not occur.
At December 31, 2003, the Company has reported current assets of $221,626 and
current liabilities of $492,100. Current liabilities includes $308,194 of
accounts payable to affiliates, net. As described in Note 16, a significant
portion of this balance has been or will be contributed to equity prior to the
spin off. In 2004, the Company expects to use net cash flows generated from
operating activities from its Rainbow Programming and Rainbow Cinemas segments
to fund the cash needs of its Rainbow DBS segment, a business with significant
cash requirements that has limited access to funding, given its early stage of
operations.
Funding needs for Rainbow DBS operations in 2004, which reflect capital
investment, operating losses, and funds required to develop its proprietary
VOOM(SM) HD programming channels, are expected to total approximately $482,000
(unaudited), including the approximately $85,000 Rainbow DBS invested in an
entity that acquired licenses from the FCC to provide multichannel video
distribution and data services. Of this amount, approximately $237,000
(unaudited) is being provided by Cablevision as an equity investment on or prior
to the date of the spin off. In addition, Rainbow Media Holdings LLC, a wholly
owned subsidiary of Cablevision, has the ability to borrow up to $100,000 under
its credit agreement (subject to covenant compliance and availability) and, if
necessary prior to the spin off, will use proceeds of those borrowings to make
equity investments in Rainbow DBS. Also, a bank has provided a commitment to
purchase $250,000 of Rainbow Media Holdings senior subordinated debentures, the
proceeds of which, if necessary prior to the spin off, will be invested in
Rainbow DBS (subject to covenant compliance and availability). The Company
believes that these investments will be sufficient to fund the cash requirements
of the Company, including Rainbow DBS, for the next twelve months.
All of the borrowings under the Rainbow Media Holdings credit facility as well
as any amounts drawn under its $250,000 subordinated debt financing will be
required to be repaid prior to the date of the spin off. The Company expects the
funds necessary for that repayment to come from new debt issued by AMC, IFC and
WE or a holding company that owns the interest in those companies. The Company
anticipates that the remaining proceeds of the financings could, subject to
certain limitations and financial covenants, be used by the borrowers to make
investments in Rainbow DBS. The ability of AMC, IFC and WE to invest in Rainbow
DBS will be primarily subject to (i) compliance with a total debt to cash flow
covenant, based on the cash flow of AMC, IFC and WE, and (ii) annual and
cumulative investment basket limitations on the amounts available for
distribution and investment. The need to finance the development of the Rainbow
DBS business will limit the funding available to the Rainbow Programming
businesses for additional programming development activities.
There can be no assurances as to the ability of the Company, Rainbow Media
Holdings, AMC, IFC or WE to secure any of this new financing. If sufficient
financing cannot be raised prior to the spin off, the spin off will not occur.
Here is an interactive map for AMC6:owlbox said:
http://www.lyngsat.com/tracker/amc6.html
Click your location to get approx azimuth & elevation.
For comparison, here's the same interactive map for Rainbow 1:
http://www.lyngsat.com/tracker/rain1.html
AND MY GREAT NEWS FOR TODAY...
I signed on today and I be
VaVaVooming on May 22!Sadly, I have my doubts about seeing Rainbow 1 from here. :river I will be bummed after 3 months of monitoring this list and licking my chops. :lick If the install works, there's a Sony 34XBR910 somewhere out there with my name on it.
Wish me luck. 
Sean Mota said:
Here's a bit more on the financing...
Posted: Wed., May 12, 2004, 6:24pm PT
Rainbow spinoff plans hinge on refinancing
Major financial hurdles still to be crossed
By MEREDITH AMDUR
NEW YORK -- If Cablevision investors were looking to ease their concerns about the prospects and costs of its new Voom satcasting platform, they probably didn't find comfort in documents filed with the SEC this week outlining the company's plan to spin off Rainbow Media Enterprises.
New York area cabler hopes to spin off the unit -- which comprises the nascent high-definition satcaster along with cable nets AMC, IFC and WE and Clearview Cinemas -- to shareholders later this year.
But there are still some major financial hurdles to cross before Cablevision can take the entity to the stock market, analysts noted.
Company has indicated that the stock listing is dependent upon refinancing all of Rainbow's outstanding debt load of up to $1 billion. That could prove challenging given current weakness in the high-yield bond markets and the high-risk nature of Voom.
Cablevision is already committed to spending some $237 million to fund Voom this year and claims it has financing in line from banks and existing credit facilities to fund the startup service through the first quarter of 2005.
Analysts at JPMorgan said the tenuous funding environment could delay the spinoff and prompt further investment by parent Cablevision -- the one thing investors are anxious to avoid.
To date, Voom has 8,000 subscribers but had a 21% churn rate in its first several months. Company admitted in its Form 10 that the service got off to a bumpy start with insufficient programming, some technical issues with receivers and overly high equipment prices.
Service now offers 36 channels in high-def, 21 of which are new and exclusive to Voom; over 80 channels of standard-def programming; and 18 channels of audio programming. Programming packages are currently priced from $39.90 to $79.90 per month.
Read the full article at:
http://www.variety.com/story.asp?l=story&a=VR1117904795&c=18
If I understand this correctly voom now has under mpeg2 what?
35HD and 80 SD
after mpeg4 they will have 58HD and 176SD on rainbow1 alone
then 39HD and 156 SD on amc6 under mpeg2
if mpeg4 is applied amc6 could offer say 60HD and 300SD?
So total could be 118HD and 476SD? capacity under mpeg4?
35HD and 80 SD
after mpeg4 they will have 58HD and 176SD on rainbow1 alone
then 39HD and 156 SD on amc6 under mpeg2
if mpeg4 is applied amc6 could offer say 60HD and 300SD?
So total could be 118HD and 476SD? capacity under mpeg4?
I don't see how what I said is false. "Bled cash" is just another way to say that more cash (from operations) was going out than coming in. Dish reported a loss in every year from 1996 until 2003, do you agree?
In any event, the point is that one or two annual losses isn't going to break a company with good cash flow.
why not? isnt encoding and decoding done at the source, voom and by our recievers?Sean Mota said:Don't think AMC-6 will do MPEG-4. But could you imagine 58 + 39 = 97 HD channels?
if you need a backup of all channels that would only be 48 or 49Sean Mota said:Don't think AMC-6 will do MPEG-4. But could you imagine 58 + 39 = 97 HD channels?
