Cablevision Board To Debate Voom Fate (1 Viewer)

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rtt2

Supporting Founder
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Sep 8, 2003
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Well Cablevision's 4Q numbers should be out about February 10th. I am sure the board wants a sale before then. Lets hope this gets wound up soon.
 
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Amphicar770

SatelliteGuys Pro
Supporting Founder
Dec 26, 2004
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I just hope they get my install done before they become part of E* which I am desperate to get rid of. It should have been tomorrow but Installs Inc. screwed up scheduling with the installer. Now set for 01 Feb.
 

brewerdude

Active SatelliteGuys Member
Jun 24, 2004
16
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Riddle me this

How can the SEC allow Charles to buy Voom himself?? Something seems awful fishy about the head of a company starting a new venture with his company's assets, seeing it flounder, and them buying it with is own personal funds on the cheap. Seems a little under handed...
 

bbrukx

Active SatelliteGuys Member
Dec 20, 2004
20
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brewerdude said:
How can the SEC allow Charles to buy Voom himself?? Something seems awful fishy about the head of a company starting a new venture with his company's assets, seeing it flounder, and them buying it with is own personal funds on the cheap. Seems a little under handed...

I think you're right, some cablevision shareholders will sue that the VOOM business was sold too cheap, no matter what the price ends up being, this thing is far from being over...
 

Walter L.

Supporting Founder
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Mar 29, 2004
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Wow, 81 members and 94 guests on-line. I wonder how many of those "guests" are financial reporters or SEC officials ;) monitoring what the heck is going on here.
 

Ronald_Jeremy

SatelliteGuys Pro
Jan 2, 2005
3,429
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Rock Ridge!!!!!!!!!!!!
energetik said:
It posted $5.9 million in revenue and generated no revenue a year earlier.

$5.9 mil

@ avg $99/month/sub that is 59,595 subs.
@ avg $75/month/sub that is 78,667 subscribers.

It would actually be higher since they only had 26,000 in September.


[Edit: Damnit, I forgot about ad revenues!!!]
 

slacker9876

Professional Amatuer
Supporting Founder
May 20, 2004
1,821
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Spokane, WA
FrankJo said:
The most ironic thing is that no one over in the d* or e* forums is talking about voom, which makes me wonder how much real interest there is in it, and what's going on.

I already know we're interested in it. Hell , i'm interested in it and i don't even subscribe anymore.
Having been a subscriber to all three services (currently D*, 7 years) my two cents is only if I don't have to pay for it. Voom GAVE ME their service for 2 month free and I cancelled because it was so bad. I don't know if things have changed at all recently.

The only way I see Voom ever having success, short of acquisition by D* or E* is to sell themselves as an ala carte service. If I were able to purchase a Voom receiver for less than $100 and subscribe to only ALL HD premium movie channels, that would be worth about 40/mo to me. Making it ala carte, keep it real. Like someone posted ... without standard cable channels ... the whole package looses value. Add in the PQ issues reported by many, it plain is not worth it unless you are bleeding cash :)
 

rtt2

Supporting Founder
Supporting Founder
Sep 8, 2003
903
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Ron that is a funny name

but - you forgot equipment sales, service calls, box rentals, etc
 
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rtt2

Supporting Founder
Supporting Founder
Sep 8, 2003
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Charles Dolan could bid for Voom, memo hints
Long Island Business News
Jan. 20 2005 -- 4:25:16 PM EST
by KEN SCHACHTER

BETHPAGE - In the wake of a bruising boardroom battle at Cablevision, a memo has emerged that hints Charles Dolan and other family members could seek to buy the Voom satellite TV service.

On Wednesday, Cablevision directors sided with CEO James Dolan in deciding to sell or shut down 18-month-old Voom, which has failed to gain traction against rivals DirecTV and Dish Network.

Today, an internal memo was posted, and later removed, on the SatelliteGuys.US Web site. The purported internal Voom memo from Charles Dolan and his son Thomas said that potential bidders for Cablevision's Voom unit, Rainbow DBS, included the Dolan family. Should the business be sold, the memo said, Rainbow DBS staff "will simply work under new ownership."

The Dolan family owns a majority stake in Cablevision, but it was unclear whether family members would sell their shares in the firm founded by Charles Dolan to pursue Voom, seen by Wall Street as a high-risk venture.

In December, Cablevision aborted plans to spin off Rainbow DBS. Charles Dolan was to be chairman of the new company and Thomas Dolan was to be chief executive.
 

Bruce

That is my dog Bender.
Supporting Founder
Nov 29, 2003
6,302
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Walter L. said:
Wow, 81 members and 94 guests on-line. I wonder how many of those "guests" are financial reporters or SEC officials ;) monitoring what the heck is going on here.

Well I started this thread, I have to see what it will mutate into.
003.gif
fight.gif
 

Walter L.

Supporting Founder
Supporting Founder
Mar 29, 2004
1,855
0
Portland, Oregon
bruce said:
Well I started this thread, I have to see what it will mutate into.
003.gif
fight.gif
That means that you're liable. Be prepare to spend big $$$ on lawyers, the SEC officials may call you first for testimony :eek: :shocked :D
 

rang1995

Supporting Founder
Supporting Founder
Sep 30, 2003
904
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Bergen co NJ
The Lessons of Voom
What can the industry learn from the mistakes made by
Cablevision's satellite TV service? By Phillip Swann


Washington, D.C. (January 19) -- Voom is getting closer to doom.

Cablevision's board of directors this week decided that it would attempt to sell its
struggling satellite TV service. If the service can not be sold soon, the odds are good
that Cablevision will simply pull the plug. Voom, which launched more than a year
ago, has less than 30,000 subscribers despite an ambitious lineup of nearly 40
High-Definition TV channels. And The Wall Street Journal reported today that
Cablevision's board ordered management to immediately reduce spending on the
service, a likely signal that it will be closed if it's not sold.

What happened to Voom? Any why did Cablevision spend hundreds of millions of
dollars to launch the service?

As Cablevision proceeds to wind down the venture, it's a good time to look at the
lessons that can be learned from its failure.

Lesson #1:
Think Twice -- No, Three Times -- Before You Challenge the Establishment
Chuck Dolan, Cablevision's founder and chief Voom supporter, should have known
better than anyone that existing cable and satellite companies have a virtual lock on
the market. In the case of the satellite industry, which Voom dared to conquer,
DIRECTV and EchoStar now have nearly 25 million subscribers and a decade's
worth of experience and consumer recognition. There just isn't room for a third
player; Voom was a long shot from the beginning. The only way it could have
succeeded was to offer something that DIRECTV and EchoStar could not.

Lesson #2:
If You Want to Be Niche, Don't Spend Money Like You're Rich
Dolan must have understood lesson #1, which would explain his decision to market
Voom as a High-Definition TV service. DIRECTV and EchoStar now offer less than
10 high-def channels so Dolan concluded that Voom's heavy HDTV lineup would be
a magnet for the growing audience of HDTV owners. The problem, however, is that HDTV is not growing at the pace that Dolan and others had anticipated. There are
roughly 11 million HDTV homes in the United States, hardly an audience large
enough to justify spending hundreds of millions of dollars. If Dolan wanted to market
Voom as a niche service, he should have started with a conservative budget and then increased spending when more people bought HDTVs. However, he spent money on Voom as if the entire country was on the verge of buying a new set. (And
he's asked Cablevision's board for even more money!) In football, it's said that
you "outkick your coverage" when you punt the ball too far downfield, which permits the return team to set up a big run. Similarly, Dolan outspent his audience, leaving
Cablevision vulnerable to charges that the company has built a service whose supply may never meet demand.

Lesson #3:
Be Careful When Traveling In Foreign Territory
Cablevision -- and Dolan -- knows cable. There's no question about that. However,
the company seems to have underestimated the market forces that make the
satellite TV industry a trickier proposition. Unlike cable, which has a virtual
monopoly in most cities (many people subscribe because it's the only way to get
their local stations without a snowy picture), the satellite industry doesn't have the benefit of being partners with local governments who promote their service at every opportunity. Consequently, they have to work overtime to attract subscribers,
building massive retail units and spending millions of dollars on national advertising
campaigns. But, today, Cablevision's top executives and board members seem
surprised that the Voom venture is so costly.

Of course, this development is not uncommon in the business world. Many
companies, flush with success and profits, suddenly believe they can conquer a
different category or industry. For instance, the telephone companies are preparing
to launch TV services of their own. However, history shows that success in one industry does not often transfer to another. Just ask the fellow who persuaded Harley Davidson to make a wine cooler in the 1990s. What's that? You can't find a Harley Davidson wine cooler at your local supermarket?

Lesson #4
Be Wary of Those With Cloudy Vision
Many great leaders are visionaries. They see trends before anyone else, enabling
them to move their companies in the right direction at just the right time. However,
vision can be arrogance in disguise. In Voom's case, Chuck Dolan persuaded
his company that his vision was clear when it was actually clouded with arrogance.
He ignored all the warning signals and he believed his view was unassailable. Unlike wise visionaries, he did not heed the advice of others and alter his course when necessary.

And now, it's too late.

Phillip Swann, president of TVPredictions.com, has been quoted on TV technology
in dozens of publications and by broadcast outlets, such as The Chicago Tribune,
The Hollywood Reporter, Fox News and CNN. If you would like to contact Mr.
Swann, he can be reached at 703-505-3064 or at Swann@TVPredictions.com.
 

voombot

SatelliteGuys Family
Aug 24, 2004
85
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read that article yesterday, HDTV future doesnt seem so clear anymore.

Any former voom users from Newport News VA reading, can you PM me.
 

Walter L.

Supporting Founder
Supporting Founder
Mar 29, 2004
1,855
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Portland, Oregon
rang1995 said:
The Lessons of Voom
What can the industry learn from the mistakes made by
Cablevision's satellite TV service? By Phillip Swann

That article was already posted on this thread (here). I'll repost my response again: IMO, Phillip Swann doesn't have any credibility. He does predictions and later change based on what he see happen. I've confronted him directly before at AVSForum about that. Checkout this post.

Phillip:
On your March article you predicted that "Cablevision eventually will sell Voom's assets to either DIRECTV or EchoStar, perhaps as early as the end of the year.
Then on your November article you changed your predition to "I predict that Cablevision will close Voom or sell it to
EchoStar in the first six months of 2005 (if not sooner)."
How can you change your prediction? If you're in the prediction business and you want to establish credibility you can't simply change based on what happen. Also, I notice that you use words like PERHAPS and EVENTUALLY in your predictions; again, you shouldn't do that if you want to establish some credibility.

Of course, he never answer.
 

Ilya

XXI Century Explorer
Staff member
HERE TO HELP YOU!
Lifetime Supporter
Feb 16, 2004
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Yes, this article has been already posted on page 18 of this thread. Wow, what a long thread this is!!!
 

Mr.Poindexter

SatelliteGuys Family
May 25, 2004
91
0
Selma, CA
Ronald_Jeremy said:
$5.9 mil

@ avg $99/month/sub that is 59,595 subs.
@ avg $75/month/sub that is 78,667 subscribers.

It would actually be higher since they only had 26,000 in September.


[Edit: Damnit, I forgot about ad revenues!!!]

That $5.9M figure for revenues was for the third QUARTER which makes it three months.

$5.9M / (26K subs * 3 Months) = $75.64 per sub per month.

The current sub numbers is unknown to the general public.
 

vurbano

On Double Secret Probation
Supporting Founder
Apr 1, 2004
23,813
104
Newport News, VA
Scott Greczkowski said:
And any posting here is NOT under public domain, when you signed up you agreed that all posts here become property of SatelliteGuys, its like that on most every forum I know of.

:)
It is possible to view the posts without being a member isnt it? I know some forums are like that.
 

Walter L.

Supporting Founder
Supporting Founder
Mar 29, 2004
1,855
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Portland, Oregon
vurbano said:
The freakin memo is published already, it doesnt matter anymore
Now, yes I agree, it doesn't matter because it is publically available at Newsweek website. But at the time that I made that post it wasn't available anywhere else.
 
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