A Pivotal Week for VOOM

[shaun-ohio]

This could be a pivotal week for Cablevision and its struggling VOOM satellite TV service.

Cablevision's agreement to maintain VOOM expires Thursday, March 31. The company and its chairman, VOOM backer Charles Dolan, agreed earlier in the month to keep VOOM up and running while Dolan figured out how to take over the satellite TV service from the cable company.

Cablevision was planning to shut down VOOM this week, but gave Dolan time to put together a transaction after he replaced members of the Cablevision board, among other strategic moves.

While the VOOM deadline is Thursday, "This does not necessarily mean that the service will be shut down," said Tom Eagan of Oppenheimer and Co. "We expect Cablevision to extend the agreement."

However, Eagan said long term it's likely EchoStar will buy the VOOM programming suite in addition to the satellite supporting the satellite TV service. EchoStar agreed in January to buy the VOOM satellite, known as Rainbow 1, and other satellite-related assets for $200 million.

"We doubt that EchoStar wants to 'waste' the satellite's transmission capacity on the VOOM service," Eagan said. "Moreover, after the satellite sale closes, EchoStar may look to transfer VOOM subscribers over to the DISH platform. Until then, VOOM's success could be DISH's success."

Also, this week, the first round of comments concerning EchoStar's takeover of the Rainbow 1 satellite are due at the Federal Communications Commission.

 

[007BlackMan]

How would EchoStar transfer Voom Subscribers over to the Dish platform? You say that E*would likely buy Vooms programming suite in addition to the satellite TV service. Does this mean Rainbow1 will keep transmitting for E* even if Charles Dolan doesn't get any backers to help its struggling satellite service?

 

[riffjim4069]

Didn't E* have an opportunity to purchase VOOM programming assets and subscribers back in January and passed on the offer? Why the sudden change of heart? Hasn't Charlie said repeatedly that he has no interest in VOOM programming at his Charlie Chats? These two statements contradict one another, "Eagan said long term it's likely EchoStar will buy the VOOM programming suite in addition to the satellite supporting the satellite TV service." and "We doubt that EchoStar wants to 'waste' the satellite's transmission capacity on the VOOM service," Eagan said. Very confusing.

 

[vurbano]

Where is anything that backs up what Eagen says???? Dish hasnt said they are buying anything else!!!!!!

 

[AxE]

First of all it sounds like Eagan is just speculating at this point. Nobody knows exactly what Charlie Ergen is going to do as far as Rainbow 1, and VOOM programming is concerned including us (retailers).

Secondly.....It would be in Ergens best interest in my opinion (as well as many others)to purchase VOOM programing and upgrade current VOOM subs to E* equipment, dish and all at no cost. Thats what, 50,000 new customers in one shot? Sounds like a smart financial move to me.

 

[Walter L.]

This article is ridiculous and full of contradictions.

 

[AxE]

I agree

 

[ChrisDuncan]

I don't put any faith in that article at all. But if E* did try to switch Voom customers over for free, who would really be interested unless they also bought the Voom programming along with it? Even then, what about all the premium HD channels?

I know I'd have to just laugh at the offer. I also have D*, and while they've made a mockery of HDTV, at least they seem to have some type of a plan for the future (though it'll probably just amount to offering HD locals to put them even with cable).

Before DirecTV, I had Dish (non-HD) for a few years, and I just don't think I could stomach any more commercials where I have to see Charlie Ergen's face, or sit through a charlie chat. Never again.

 

[speedyray]

That article makes zero sense. If DISH were to try to convert me without at least everything I get now, I would just tell them to go to hell. I bet most people would. The reason we signed up was for HD content. DISH has what 5-6 channels. VOOM is the only reason I ever left cable. I watch DVDs and soon HD-DVDs 90% of the time while watching TV about 10% of the time. HD has changed that a little, but without VOOM, it will be back down there.

 

[AxE]

If E* does buy V* programming, they would do a free install on 4 rooms as well as all current promos like 180 channels for $31.99 for 3 months, and up tp 2 free HD receivers.

I can understand what you are saying about who would be interested unless they offered all V* programming, After you have the luxury of all of those HD channels? That's why I am saying that it would be a smart financial move for Ergen to not only buy the satellite but also the programming. Not only would that make Voomers happy, but it would attract a large new customer base, which would make us retailers happy. And honestly, I can't see E* charging more than about $60/mo. for the 120 channel pkg with all that HD content.

Right now E* and D* have the same channels available for HD depending on your region. You all probably already know that D* is going to start launching the new satellites later this year for HD content. This would just be an opportunity for Ergen to get a jump on them.