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GreatMac

SatelliteGuys Guru
Jan 19, 2005
124
0
Not sure I agree with the Walmart angle for Voom.

Apart from the fact that Walmart is hardly the driving force behind HD sales currently, Voom also competes through exclusive HD content, which would be have to be dumbed down to the point of loosing its value if it were to serve the Walmart shopper.

But this is a moot point, since Walmart is not available, anyway. Voom needs to be creative. One way would be to team up with a PC card maker and Apple and MS, to provide Voom PC cards. This would make Voom a no brainer for anyone with a HTPC (MCE alone has close to a million and a half users). If they strike deals with the major PC makers to include a Voom PC card and a Voom service pack with their HTPC boxes, it can be a huge advantage over D* and E*. HTPCs are a fast growing market. For better revenue flow, Voom can even lease the cards, for a bit less than the DVR they are preparing.

You don't have to sink to the lowest common denominator or have the largest customer base to be profitable. Look at E* (less subs than D*, but profitable) and Apple with the iPod (pricier, more exclusive than the competition, but also more profitable and successful). And no, they don't sell the Apple iPods in Walmart....
 
vurbano

vurbano

On Double Secret Probation
Supporting Founder
Apr 1, 2004
23,813
104
Newport News, VA
GreatMac said:
Not sure I agree with the Walmart angle for Voom.

Apart from the fact that Walmart is hardly the driving force behind HD sales currently,
Thats the point. Currently there is no driving force anywhere. In order for digital to grow it must become a money maker and in order for HD programming to grow it must become a money maker also. Currently Analog is THE money maker. In order to get the analog shut down we need to have 85% of households able to recieve a digital signal. That means Joe sixpack will have to own these sets and recievers. Hopefull Joe will see the HD sets and buy one over a digital only set. The lower priced HD set prices in a place like Walmart could make this happen in droves. Not specialty electronic stores for the upper class or upper middle class. We simply dont have the numbers. Those specialty stores and their salesman want to sell high not low. If you count on BB and CC to do it we all may as well sell our sets and come back in 10 years!
How does this affect Voom? Well without the HD sets out there as potential subscribers, Voom fails under its curent business plan. Very simple.
 
shanewalker

shanewalker

Overall, an O.K. Guy
Supporting Founder
Mar 15, 2005
1,239
0
KC/MO!
Here's an idea: They could sell Voom straight off the back of Schwan's trucks. Frozen chicken fingers, ice cream sandwiches and satellite direct to your farmhouse door. My grandma would be thrilled ;).
 
Z

zombie

SatelliteGuys Pro
Feb 19, 2005
213
0
GreatMac said:
And no, they don't sell the Apple iPods in Walmart....
It's only a matter of time they started selling them in Sams Club..
 
G

GreatMac

SatelliteGuys Guru
Jan 19, 2005
124
0
zombie said:
It's only a matter of time they started selling them in Sams Club..

True, but the iPod was established as THE portable MP3 player without sinking to Wallmart. All I am saying is that Voom doesn't have to dumb down to such an extent to be successful. In fact, if it starts looking too much like D* and E*, there will be no reason to go to Voom over the competition.

BTW, if Voom waits until HD is in Wallmart, they'll be out of business. Plus, by the time HD gets to W, D* and E* will start throwing money at HD, and they have more $$$$$$ than Voom.

I still think Voom has to figure out a sexy angle to get a lock on the current HD market, and teaming up with HTPC makers could be a good building block. If Voom did this and you are one of the more than 2 million HTPC owners, there would be no existing (legal) option to get encrypted signal into your HTPC other than VOOM.

Plus, it will get Voom offers into all of the stores (such as BB) that sell HTPCs where Voom may not be allowed currently.
 

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