Will Voom Survive?

[kryten98371]

West coast problems

I was all ready to install Voom. The problem with us out here on the west coast is that the bird is so low on the horizon.

I think that if Voom is to survive, they will need more customers on the west coast, thus a bird at around the 100+ degree location.

 

[Eric_C]

Sean,

Same thing, investors will follow mostly what they read.

As far as the anonymous 1B in dollars, does that also include some people to run the company? 1B at their current rate is what 2 quarters or less of losses?

Eventually you reach a point where dollars outweigh even the best idea's, like I said in my original post, they need to add subs fast, 125K+ in the next 2-3 months, if that doesn't happen no one will continue to throw money at them.

I feel I am the minority subscriber, I live right next to civilization but am just on the outskirts, or so says my roughly $20.00 per month in rural upkeep fee's for gas, electric, and phone. If I could get the Brighthouse HD DVR deal I never would have looked at Voom, just in the past few weeks its shaping up that cable, if they continue to offer the great HD DVR/Internet access value, will suck up all of the new subs that might become available. $108 per month, for HD, HD DVR, Internet Acccess at 3mbps, plus your digital cable station is a steal. I was at 149 for Voom/DSL, and now at 111 for E*/DSL but without the HD DVR and 1/2 the speed. Cable's ability to bundle deals like this and the fact they pretty much have amoritized their costs leaves them sitting on cash to subsidize the DVR deals and the like. D*, E*, and V* don't have this luxury. Its not going to effect D* for a while, but with E* and V* fighting over the rest of the customers out there, the cable companies deals pale in comparison to what you'd get from either.

Also, if someone just gave them 1B you figuire they wouldn't have painted such a crappy picture in the CC. Its bleeding, heavily. They seem to be doing a great amount of advertising, they should have done it during the free promo offer.

Revenue drives a stock price also. I know this well, I own a very good number of shares in a network worth 300 times its share value but it has no revnue as of yet, so no stock price...the market follows money. Voom is high risk and offers no great reward for investors, if it were on its own that might be different but right now all its going to do is drag down CV's stock price.

Voom was a great idea, handled poorly. Regardless of your wish to see something succeed or even going to the point of blind loyalty, in the end, they screwed themselves, its impossible to argue with that fact and be honest with the way they have handled things.

 

[rang1995]

this just came out
Special Report: 2005 Predictions

Voom Meets Its Doom
The struggling satcaster can't possibly survive
another year. By Phillip Swann

Editor's Note: Phillip Swann, president of TVPredictions.com, is
making 40 predictions for new TV technology in 2005. A new
prediction will be published every weekday at TV Predictions
for the rest of 2004, except for Thanksgiving and Christmas. Click
Predictions to see a list of his 2005 forecasts to date.

Washington, D.C. (November 12) -- Voom, the satellite TV service
from Cablevision, just reported that it lost subscribers over the last
three months. The news is particularly embarrassing when you note
that Voom has accumulated less than 27,000 customers after one
year. The company doesn't have the luxury of losing people at this
point.

However, the bad news is hardly surprising. When Voom launched a
year ago, I said it was doomed from the start for three reasons:

1. Voom is targeting the wrong audience
Voom has an impressive lineup of 30-plus HDTV channels. However,
only 10-11 million people now have HDTV sets, Although the HDTV numbers are growing, the target audience is too small for a project
this ambitious. The way it's spending money, Voom can't wait until
HDTV gets bigger.

2. Voom will be co-opted by DIRECTV and EchoStar
DIRECTV just announced that it will launch four new satellites that will
enable it to deliver 150 national HDTV channels by 200. (Plus local HD
signals). So much for Voom's competitive advantage.

3. The satellite TV business has matured
DIRECTV and EchoStar, which have been in business for a decade,
now have more than 20 million subscribers combined. Although
satellite TV officials are loath to admit this, there may be only 15
million to 20 million potential subscribers still out there. (Many viewers
cannot get satellite service because they either live in apartments or
do not have a residence with a clear southern view of the sky.)
DIRECTV and EchoStar, which have spent billions on marketing and
branding, would seem well positioned to get the lion's share of new
subs. For Voom to succeed, it would have to take subscribers away
from the existing services or somehow manage to leapfrog them in
marketing awareness.

So, what's Voom next move?

According to financial news sites, Cablevision's investors are
screaming for the company to shutter Voom as soon as possible. The
satellite TV service is bleeding red ink, causing Cablevision's profits to
suffer. So I predict that Cablevision will close Voom or sell it to
EchoStar in the first six months of 2005 (if not sooner).

EchoStar seems like an ideal candidate to buy Voom. The 27,000
subs wouldn't be very appealing, but Voom's orbital locations would.
EchoStar conceivably could use those slots to expand its HDTV
lineup, thereby staying competitive with DIRECTV when it launches
the four new satellites.

Either way, it's clear that Voom is doomed.

Phillip Swann is President & Publisher of TVPredictions.com. If you
would like to contact Mr. Swann, he can be reached at 703-505-3064
or at Swann@TVPredictions.com. And come back every weekday
for a new prediction for 2005!

 

[Eric_C]

I missed my calling as a financial analyst

Voom is doomed as a company, the channels and product I believe will live on.

It costs way too much money to launch a sat, get FCC bandwidth, blah blah blah, easier just to buy it, someone will buy this, or will be in those same financial rags as making a big mistake for letting an opportunity like that pass them up.

What would be the kicker is if D* bought it, I might be turning in my E* equipment faster than I thought.

 

[barth2k]

I don't think D* will buy it. They're launching their own, bigger and better satellite. They could buy the programming, but they have no bandwidth to carry it anyway for at least another year.

 

[Walter L.]

I don't think D* will buy it. They're launching their own, bigger and better satellite. They could buy the programming, but they have no bandwidth to carry it anyway for at least another year.

D* has publically say that they intend to use the new sats for HD locals to compete with cable companies. That is parhaps a smart move in their part. However, if you currently get HD locals OTA, D* HD-pack will continue to be of little value to you.

 

[Sean Mota]

Walter I just copy this from someone who posted at AVS. This is the quote from D* regarding their new satellites. In 2005 they expect to add 150 HD locals and in 2007 they will have capacity to add 150 HD national channels. Unless I read this wrong 2007 is when will see the 150 HD national channels.

from the D* website

"...The first two of these satellites, Spaceway 1 and Spaceway 2, will launch in 2005 with programming being offered to consumers by the middle of the year. These satellites will have the capacity for more than 500 local HD channels. With these satellites, DIRECTV will have the ability to bring local HD programming to most of the U.S. population, as well as continuing to expand standard-definition local offerings and other enhancements.

The next two satellites, DIRECTV 10 and DIRECTV 11, will launch in early 2007. These satellites will have the capacity for more than 1,000 additional local HD channels, more than 150 national HD channels, and other new programming offerings. These satellites will provide DIRECTV the capability to bring local and national HD programming and other advanced services to every U.S. household. Consumers will be able to receive all of these services, as well as existing DIRECTV® programming, with a single small satellite dish."

 

[Walter L.]

Sean,
I agree with your interpretation, it sounds like if you're a D* customer that currently get HD locals OTA, you will have to wait at least until 2007 for new HD channels (other than locals).

 

[Eric_C]

When I called D* to inquire about signing up the CSR, who was obviously reading off a cue card...for nearly 5 minutes, said the same thing. The first SAT is to increase HD content, the second for HD locals.

Normally I would not put alot of stock into what a CSR says, but this was scripted so she was obviously told to say this.

 

[Sean Mota]

so basically you put more weight on csr's script than to the press release by D*.

 

[Walter L.]

When I called D* to inquire about signing up the CSR, who was obviously reading off a cue card...for nearly 5 minutes, said the same thing. The first SAT is to increase HD content, the second for HD locals.

That's true only if the 2nd sat is launched 1st . Read the press release and never trust a CSR from V*, D*, E* or cable.

 

[talon1189]

I think Voom will be around at least 5+ years I think that it will take another year to get all the bugs out of the system. Trust me.......DTV, and Dish had there share of problems also when they were new also Customers just need to find more patience.

 

[wbuffetta]

talon1189 from your icon to your comments you indeed seem to have alot of patience. And if that dosent work it appears you are ready to (Scott Peterson) who ever you have to.

 

[vinnyv07]

You have to ask yourself...would you invest your money in VOOM? Thank goodness VOOM is backed by cablevision...which happens to be doing very well in its cable market....its carring VOOM along for the ride. Enjoy it now.....I hope it survives but the question seems to be , how much does Dolan believe in VOOM? Will he give up his dream?

 

[joemama]

Almost everyone posting here is willing to ride it out as long as it lasts. I commend you for that. But honestly, look at it as if it were your money backing Voom. Would you keep throwing money down a bottomless pit? Doesn't it bother you that as an individual you are able to be heard? I've seen less of it lately, but whenever there was a problem, Sean referred you to Wilt and he answered. That right there should tell you that Voom can't keep afloat. If somebody that is supposed to be that high up in the company can listen to an individual, they aren't looking at the future, they are hoping they have a future.

Voom has a little over 0.1% of the subscribers that D* and E* have together. Doesn't it also bother you that Voom's sub count actually dropped over the past few months?
Sure, they will keep broadcasting until the doors shut, but in the end will you be any better of for it? Y'all better hope that Voom gets bought out so your subscription gets taken over. Otherwise, you'll be shelling out $$$ to feed your HD fix from Cable, D* or E*.

As long as Voom lasts, I'll have something entertaining to read because everybody here will keep posting. I love HD. I keep saying that the inventors of TV can be happy now, because true HD is what they always hoped TV would look like. Did Voom have an impact on HD as one of the other threads has asked. Not really. Right now, I think the best HD(quality, not content) is coming OTA. They aren't squeezing the bandwidth yet. Instead of pushing for Voom, we should all be pushing for all local network channels to broadcast in HD with enough power to be received by a standard antenna!

 

[1080iBeVuMin]

...Doesn't it also bother you that....

Nope, it doesn't bother me.

As long as Voom keeps sending HD that I enjoy, why should I care how many other subscribers are out there? If Voom goes under, I will see what my choices are then.

What is my alternative to Voom right now? Another provider with a lot less HD? Sure, that makes a lot of sense. Where do I sign up?

 

[The Stone Man]

What's the worst that could happen? Voom decides they can't go on, and they decide to pull the plug and stop transmitting. All current customers are hosed and have to find a new provider. Life will go on.

Everyone has their own level of tolerance, and when they hit that point, they will look for another service. Some people have a low threshold for screw-ups and lack of features, so they bolt. Others are more optomistic, and prefer to wait and see what happens. Neither one is right or wrong. It is all about individual choice. That is something that our veterans can all identify with, I'm sure. I know I do.

And does it bother me that Voom is losing money? If I was an investor, it would bother me. But I'm a customer, so it is really not my concern. If they go out of business, then I might be without a provider for 3 days until I find something else, but I will still get the locals through OTA (assuming the STB remains viable). But instead of hoping for certain things to happen, I'll just enjoy what I have while I have it. When and if I ever reach my tolerance level, I'll find something else.

 

[vinnyv07]

But instead of hoping for certain things to happen, I'll just enjoy what I have while I have it. When and if I ever reach my tolerance level, I'll find something else.

Thats really a good point and thats really how to look at what we have right now. enjoy it while you have it. I dont have any money invested in VOOM....and like most we are just customers that pay monthly for a service. Hd is fantastic and Voom is providing the most HD right now.