Voom’s Price Hike

rtt2

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Sep 8, 2003
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VOOM’S PRICE HIKE;
Service setup no longer free;
In an effort to curtail losses and prepare for spinoff by Cablevision, company also raises programming fees

BYLINE: BY HARRY BERKOWITZ

BODY: Voom has stopped giving it away.

The nationwide satellite TV service launched by Cablevision Systems Corp. in October has begun charging $199 for installation in an effort to cut heavy initial losses.

Previously, installation was free for customers who did not buy equipment up-front. That deal was aimed at attracting more subscribers after a slow start for the service, which stresses high-definition programming.

The new installation charge also is aimed at cutting back on customers who sign up for the service but then don't pay the required monthly fees.

Voom has raised its monthly programming fees by $10, pushing them to $49.90 per month for a basic package and $89.90 for one that includes premium channels such as HBO and Showtime. Spokeswoman Bo Park said the higher fees reflect the addition of more channels.

Voom, based in Jericho, is continuing to charge $9.50 a month for equipment if customers do not choose the option of paying $499 for equipment and installation up-front.

Cablevision, which is preparing to spin off Voom as a separate company with its own publicly traded stock, has assured investors and lenders that there will be limits on how much money the venture will spend.

"While the higher prices do not ensure Voom's success, it shows that management is no longer willing to lose as much per new subscriber," said Richard Greenfield, an analyst at the independent research firm Fulcrum Global Partners.

In recent filings, Cablevision said that beyond initial financing, the new venture, which will also own the cable channels AMC, Independent Film Channel and WE: Women's Entertainment, will not spend more than $150 million per year and $600 million altogether on Voom. For initial financing, in addition to a $950 million credit line, Cablevision is about to sell $800 million in junk bonds.

As of April 30, Voom had 8,000 activated customers plus 3,400 awaiting installation. DirecTV and Echostar Communications have at total of more than 22 million subscribers.
 
"8,000 active customers and 3,400 waiting".......................doesn't sound very good!

Surely doesn't make me want to run out and subscribe!

Is there still a backlog of equipment??
 
videobruce said:
"8,000 active customers and 3,400 waiting".......................doesn't sound very good!

Surely doesn't make me want to run out and subscribe!

Is there still a backlog of equipment??

As you will hear from others, these are very old numers back in April. Other reported numbers are somewhere between 30,000 and 35,000. Still not a high number but the Dolan's have been in this position before and they are betting on the future of HDTV and DTV. The later mandated by the U.S. government.
 
3,400 sounds like too big of a number. Somebody must not be doing their job very well if they are THAT far behind. Speaking of the price hike, am I the only one that thinks Voom should NOT have announced a TEN DOLLAR price increase without also announcing several new channels? I understand they are short on space, but announcing that a deal is in place for when they get more space would be nice. The Voom basic pack is NOT worth $49.90, and it was BARELY worth $39.90.
 
DBSOgre said:
3,400 sounds like too big of a number. Somebody must not be doing their job very well if they are THAT far behind. Speaking of the price hike, am I the only one that thinks Voom should NOT have announced a TEN DOLLAR price increase without also announcing several new channels? I understand they are short on space, but announcing that a deal is in place for when they get more space would be nice. The Voom basic pack is NOT worth $49.90, and it was BARELY worth $39.90.

(sarcasm on)
there you go again with your whining and complaining. if you don't think it's worth it, then leave! go enjoy your 4 channels on d* or e*
(sarcasm off)
 
I'm one of the 3,400 waiting! I am unable to receive the signal from the current satellite and am waiting for the next one to come online. I would also pay the extra $10 month to have HD, but it is a moot point at the moment... All of this talk does make me think that Voom is holding on by a shoe-string and will either flourish or fail in the NEAR future. My hope is with success of course. If nothing else, Voom may put more pressure on other providers to roll out more HD channels sooner than previously planned.
 
After reading these few threads on VOOM, I can't see going this route with all the problems/issues.
I will have to see what Dish has in the line of problems/issues and hope there are fewer to deal with.
 

Voom and OTA

Looks like no Voom for the next few days in NJ

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