The Rebirth of VOOM

[Scott Greczkowski]

Just got this in my email from Broadcasting and Cable. I would give a URL to the article but there is none in the email.

Kind of interesting that VOOM will soon be FREE in the HD Teir.

The Rebirth of Voom </SPAN><!-- <table class="table" align="right" cellpadding="4" cellspacing="4" border="1"><tr valign="middle" bgcolor="eeeeee"><td valign="top"><table cellpadding="0" cellspacing="0" border="0" align="right"><tr valign="middle" bgcolor="eeeeee"><td>

• Manufacturing is Up (+50%)
  
• Prices Are Dropping
  
• Sales Could Exceed 20M

</td></tr></table> </td></tr></table> -->


Voom HD Networks is reborn with, "a 180-degree different" business model, according to co-GM Greg Moyer. The company inked a 15-year "charter affiliation" deal with EchoStar (a former competitor when Voom was an all-HD DBS operator) but is also offering a 21-channel package to all domestic and international distributors.

Moyer says Voom's 21-channel lineup will eventually be delivered as part of EchoStar's most basic HD tier (it carries 10 channels today but will increase that to 21 with the deployment of MPEG-4 set-top boxes early in 2006). Moyer and co-GM Nora Ryan say they will accept no less from any other domestic carriage agreements.

Parent Rainbow Media Holdings has pledged to spend $100 million a year relaunching and operating the service. The goal is to deliver 21 niche channels that offer something for everyone and give HD viewers a channel lineup that encourages channel surfing.

The rebirth of Voom comes off of a painfully public implosion that also put it at the center of struggles in the Dolan family. Ryan, however, says the two years experience as an HD satellite-delivered service was valuable. "We just had a two-year, 40,000-home focus group," says Ryan of the failed satellite venture. "In HD homes, 71% of viewers turn first to an HD channel when they turn on the set." Ryan and Moyer also see validation of its strategy to offer many niche channels—including such radically new ones as Monsters HD, Gallery HD and Kung Fu HD—rather than fund more broadly focused channels. They see the advent of HD as a discontinuity that allows new brand entries, but those brands can only grow along with ever more VOD and audience fragmentation.

 

[mdonnelly]

Of course, the HD Tier will go up to $25/month when this happens.

 

[Scott Greczkowski]

I found it online
http://www.broadcastingcable.com/index.asp?layout=nocclamp&doc_id=1340005570&cache=FALSE&preview=TRUE

 

[riffjim4069]

Finally, a good move by the folks at Rainbow Media! IMO, it is much better to have 70 million subscribers paying a few pennies each month than it is to have 40k paying a premium. This move will increase competition and be a major factor in driving HD to become the norm and not the exception. I wonder how the HDNets and INHDs are going to respond? Now all they (Cable and DBS) need is bandwidth. :clap

 

[rkrenicki]

heh, I was just about to post this, I recieved the same email...

 

[kfried001]

Just got this in my email from Broadcasting and Cable. I would give a URL to the article but there is none in the email.

Kind of interesting that VOOM will soon be FREE in the HD Teir.

The Rebirth of Voom </SPAN><!-- <table class="table" align="right" cellpadding="4" cellspacing="4" border="1"><tr valign="middle" bgcolor="eeeeee"><td valign="top"><table cellpadding="0" cellspacing="0" border="0" align="right"><tr valign="middle" bgcolor="eeeeee"><td>

• Manufacturing is Up (+50%)
  
• Prices Are Dropping
  
• Sales Could Exceed 20M

</td></tr></table> </td></tr></table> -->


Voom HD Networks is reborn with, "a 180-degree different" business model, according to co-GM Greg Moyer. The company inked a 15-year "charter affiliation" deal with EchoStar (a former competitor when Voom was an all-HD DBS operator) but is also offering a 21-channel package to all domestic and international distributors.

Moyer says Voom's 21-channel lineup will eventually be delivered as part of EchoStar's most basic HD tier (it carries 10 channels today but will increase that to 21 with the deployment of MPEG-4 set-top boxes early in 2006). Moyer and co-GM Nora Ryan say they will accept no less from any other domestic carriage agreements.

Parent Rainbow Media Holdings has pledged to spend $100 million a year relaunching and operating the service. The goal is to deliver 21 niche channels that offer something for everyone and give HD viewers a channel lineup that encourages channel surfing.

The rebirth of Voom comes off of a painfully public implosion that also put it at the center of struggles in the Dolan family. Ryan, however, says the two years experience as an HD satellite-delivered service was valuable. "We just had a two-year, 40,000-home focus group," says Ryan of the failed satellite venture. "In HD homes, 71% of viewers turn first to an HD channel when they turn on the set." Ryan and Moyer also see validation of its strategy to offer many niche channels—including such radically new ones as Monsters HD, Gallery HD and Kung Fu HD—rather than fund more broadly focused channels. They see the advent of HD as a discontinuity that allows new brand entries, but those brands can only grow along with ever more VOD and audience fragmentation.

I don't mean to sound pessimistic, but how many re-births to we have to go through ;-) I wonder how long before we see new content.

 

[MikeD-C05]

I suppose after the mpeg4 conversion and the final approval of the sale of the Rainbow 1 satellite to Dish, we will see the rest of the Voom 21 channels and some NEW content. I would guess by January 2006.

 

[kfried001]

I suppose after the mpeg4 conversion and the final approval of the sale of the Rainbow 1 satellite to Dish, we will see the rest of the Voom 21 channels and some NEW content. I would guess by January 2006.

Sounds like a preganancy rather than a rebirth if we have to wait that long for new content ;-)

 

[philssatellite]

Sounds like a preganancy rather than a rebirth if we have to wait that long for new content ;-)

Now that's funny right there..I don't care who you are!! Gitter-dun!

could not have said it better myself.

 

[kfried001]

Now that's funny right there..I don't care who you are!! Gitter-dun!

could not have said it better myself.

I am just an old Voomer from October '03. One of the original Voom dinosaurs, hoping for a miracle that James Dolan can actually and will actually make this work.

Unfortunately he is all about short-term gain and does not appear to have the ability to grasp long-term strategy goals. Hopefully he will invest enough in Voom to generate demand around the globe and see a quick ROI. My concern in that he will attempt to market Voom with it's current content to see what demand he can generate without investing in new content (not spending $$$'s). Voom has another window of opportunity, let's hope they don't blow it again and they put some competent people at the helm. I don't believe anyone was at the helm last time....

Ken

 

[JH1949]

Of course, the HD Tier will go up to $25/month when this happens.

If it goes up to $25, do you think they will let me drop the requirement for Top 60 ? I'd rather just watch HD channels anyway.

 

[BobMurdoch]

Hey I remember when most of us paid $8 a month for Discovery HD alone. This is progress. More buttery HD goodness on the way is always good in my book.

 

[kfried001]

If it goes up to $25, do you think they will let me drop the requirement for Top 60 ? I'd rather just watch HD channels anyway.

Is there a base package requirement? Can't you just pay the $5.00 access fee and just get the HD Package. That is what I used to do.

 

[MikeD-C05]

Yes with Dish you can do that. You can do just about anything ala cart like :
Just locals and a no basic pack fee of 5.00.
Just premium channels and no basic pack fee of 5.00.
Just hd pack and Voom and no basic pack fee of 5.00.

 

[stanny1]

Hi Guys! I was a VOOMER from March 2004 until the bitter end. I always had the complete package from COX and still do. I had VOOM strictly for HD, which on COX sucks. I have hesitated to go DISH HD because I don't need all those SD channels.
What's the minimum I have to take on DISH to get all the HD content? MikeD-C05 seems to be saying I don't have to buy a lot of extra DISH stuff.
Stan in San Diego.

 

[Sean Mota]

You can have VOOM a la-carte I believe no more than $20 per month but you need to own equipment.

 

[MikeD-C05]

Yes, if you own your own equipment and you are under no commitments with Dish, then you can sub just to the hd pack and Voom . You will pay a no basic pack fee of 5.00 + hd pack at 9.99+ voom for 5.00= $19.99.