Rainbow Filed form 10 yesterday....big news!

[Walter L.]

Big Buck,
My opinion is that DirecTV and EchoStars priorities today are to add local channels to compete against cable companies rather than adding HD channels to compete against VOOM. This will allow VOOM to be by far in front of the competition by the time that HDTV get widely adopted.

 

[txcruiser]

I agree with Walter. That's one of the reasons I'm leaving DISH for VOOM. DISH is focusing way too much on getting towns like Topeka their locals. That's great news if you live in Topeka, but not for those who want more HD channel selection.

 

[bbtkd]

i'm an institutional investor currently researching rainbow media. gator's question regarding the viability of voom is the largest issue in the CVC/rainbow story. on page 103 of the form 10 you'll find detail on the company's liquidity situation.

currently rainbow is projecting that it will need $482m to fund voom in 2004. CVC is contributing $237m to rainbow while the remainder will have to be funded through debt. rainbow currently has access to $250m in debt financing from a bank so the company should be operational for at least a year.

what i'm now trying to figure out is if VOOM is able to gather enough subs to justify continuing operating before DirecTV's and EchoStar's HD content catches up. as early adopters of voom technology your opinions on this subject would be extremely helpful and appreciated. thanks in advance for your help.

- big buck

i'm curious

Gaining subs will be an uphill battle if Voom cannot get themselves into Best Buy, Ultimate Electronics, and other major retailers. They are in Sears, so they need to play that up for all they can - but it's just not the same.

Secondly, if they continue to slant their marketing to HD, then they will hurt in the short-term as the public ramps up slowly to HD and they won't make it to the long-term. They need subs and they need them soon - so I think they need to somehow start appealing to current SD customers who think/know they will go to HD in the next 2 years. In other words, they need to be able to lure some SD customers away from the other sat providers - and they can't afford to wait for HD to be the driving force. If they can get people moving now - they are more likely to stick with Voom. Later - when the competition is getting more HD - people will just stick with what they have.

Having said that - I don't know how they can lure SD customers since they have fewer channels, more technical problems, and spotty install performance. They bet everything on HD, but the move to HD is moving too slow. Perhaps thay can fuel a faster move to HD with an advertising campaign that says "the time for HD is now - with Voom" or "don't wait any longer for HD - it's here now with Voom". The big catch there is that HD monitor prices are still so high...

 

[Walter L.]

Gaining subs will be an uphill battle if Voom cannot get themselves into Best Buy, Ultimate Electronics, and other major retailers. They are in Sears, so they need to play that up for all they can - but it's just not the same...

There are ENOUGH potential subscribers NOW in the US. If I recall correctly, ther are about 12 mil HDTV owners in the US. THat should be more than enough to survive and grow later. The key is to attract customers now.

 

[Sean Mota]

big buck,

This is year is very critical for VOOM to increase subscribership. On Feb 19, 2004, the lease program with $0 was introduced. It gained them 10K + subscribers. This lease program with $0 is supposed to terminate in May 31. Let's say that by May 31 they have 15K subs. The competition with Direct and Dish will be stiff in the next few months. I would not worry too much about Dish since their HD plans are not clear. DirecTv, on the other hand, will have their 7S satellite operational by June 2004. We all know what DirecTv main focus is -- locals. If that remains, VOOM needs to come up with a competitive offer in June to attract more subs. The competitive offer will need to be better than what Direct/Dish offers. What is their plan? We don't know yet but will definetly know by June 2004.

The big player on this is Sears. This Sears deal has been sleeping from day one. Someone needs to shake up this deal and make it work. Sears cannot continue to be a retailer for VOOM and generate zero subs for VOOM. I receive Sears own advertising and I have not seen one ad about VOOM.

VOOM needs independent retailers to which they can give good commission for each subscriber that signs up with VOOM.

VOOM can also implement something like "club dish" (Dish Network has this). Each of us can be awarded credit towards programming for bringing subscribers to VOOM.

 

[DarrellP]

I've gone into one of the Sears stores around Portland (Clackamas Center) and they always have Voom going on the HD displays but I've not taken the time to grill them on it since I always have my 8 year old daughter with me and she always whines when I want to go look at Electronics so we are usually in a hurry to get out.

 

[JonH]

Having said that - I don't know how they can lure SD customers since they have fewer channels, more technical problems, and spotty install performance. They bet everything on HD, but the move to HD is moving too slow. Perhaps thay can fuel a faster move to HD with an advertising campaign that says "the time for HD is now - with Voom" or "don't wait any longer for HD - it's here now with Voom". The big catch there is that HD monitor prices are still so high...

I really think they should make it much more clear that you can recieve the HD channels on your non HD television. And drive home the point that when you do it looks like a DVD not lousy SD.

I think all of this is great news and the fact that they have a long term plan that makes sense shows they are commited to being a player. If some of those new Sub numbers are correct they may be on their way. If by Jan 2005 we are still talking about disapointing subscriber numbers then they are in trouble.

 

[ricks]

I really think they should make it much more clear that you can recieve the HD channels on your non HD television. And drive home the point that when you do it looks like a DVD not lousy SD.

I think all of this is great news and the fact that they have a long term plan that makes sense shows they are commited to being a player. If some of those new Sub numbers are correct they may be on their way. If by Jan 2005 we are still talking about disapointing subscriber numbers then they are in trouble.

Great point about the quality of the HD feed on an analog set from a marketing standpoint. I don't think I've seen anyone mention that before. I'm in that boat now since I'm not-so-patiently waiting for the new Sammy Tantus line to be released in September. Nevertheless, the difference on my nice Sony XBR Wega in viewing a HD feed is very noticeable and equal to DVD quality.

 

[DarrellP]

Great point about the quality of the HD feed on an analog set from a marketing standpoint. I don't think I've seen anyone mention that before.

I've been saying this for years with the Dish 6000 and also in this forum for new Voom users. I've had a HD stb for 3 1/2 years but only recently bought my projector, I'd been using my old 27" TV for normal viewing and a computer monitor for HD.

 

[omard.]

I went to a Sears store in North Riverside, IL and they had one tv with Voom on it. The Voom sign was on the floor. Dish network had all the other TVs. This was three months ago have not been there since. It's a good thing I already knew about Voom before that experience if not I would never had signed up.

 

[Ken F]

Wow. This is really speculation at its best

That's why it's clearly labeled as speculation and "possibilities."

 

[cpdretired]

I went to a Sears store in North Riverside, IL and they had one tv with Voom on it. The Voom sign was on the floor. Dish network had all the other TVs. This was three months ago have not been there since. It's a good thing I already knew about Voom before that experience if not I would never had signed up.

I went to the Chicago Ridge store and it wasn't even hooked up. The salesman had no idea when it would be. After then I went to Ford City. What a joke. The sales lady said that Voom only gives us one channel. After watching for a few minutes I found this to be a Sears produced loop adverstising Voom and power saws. I did mention the current offer with no contract. I may as well been talking to the wall. The sales person had no idea what I was talking. My suggestion was for them to call Voom.

 

[Seanb61]

They bet everything on HD, but the move to HD is moving too slow. QUOTE]

Don't forget that the move to HD is expected to grow exponentially in the next 2 years.

 

[Seanb61]

big buck,


The big player on this is Sears. This Sears deal has been sleeping from day one. Someone needs to shake up this deal and make it work. Sears cannot continue to be a retailer for VOOM and generate zero subs for VOOM. I receive Sears own advertising and I have not seen one ad about VOOM.

We should see people on the Extreme Home Makeover show picking out Voom systems to install in hte houses.

 

[vurbano]

Compusa. they are big and are selling big screen TV's here. Voom needs a contract there. Plenty of tech people shop there.

 

[rang1995]

They bet everything on HD, but the move to HD is moving too slow. QUOTE]

Don't forget that the move to HD is expected to grow exponentially in the next 2 years.

Don't forget the biggest part(90%) of the HD selling season will be nov-dec jan up intill superbowl..that's the way ot has always been and voom will have it's ducks lined up for the first time for this year.(and rental slots on the new SAT) so any newbies will have for hdtv voom opr the others with alot less..to me only one thing makes D* more attrative and that is Direct ticket for the NFL E* has nothing, and Voom will have a clear lead for HD...

 

[vurbano]

Don't forget the biggest part(90%) of the HD selling season will be nov-dec jan up intill superbowl..that's the way ot has always been and voom will have it's ducks lined up for the first time for this year.(and rental slots on the new SAT) so any newbies will have for hdtv voom opr the others with alot less..to me only one thing makes D* more attrative and that is Direct ticket for the NFL E* has nothing, and Voom will have a clear lead for HD...

too bad most of those Holiday shoppers will be shopping at the superstores and not see Voom in them.

 

[Bruce]

And his other big selling point "until superbowl" when there will be no superbowl in HD on Voom(or D* and E* either)this is where cable is ahead.

 

[vurbano]

And his other big selling point "until superbowl" when there will be no superbowl in HD on Voom(or D* and E* either)this is where cable is ahead.

cable only has 6 hd channels in this area

 

[Seanb61]

And his other big selling point "until superbowl" when there will be no superbowl in HD on Voom(or D* and E* either)this is where cable is ahead.

why would there be no superbowl on Voom? if you can get your locals you will have it.