Inside the New Voom
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Inside the New Voom
Charlie Ergen didn't care about Voom's turbulent background. Rather, he saw something for his subscribers--lots of high-definition programming. Can Voom attract more customers?
By Mavis Scanlon
Voom version 1 failed as a stand-alone satellite and programming service. Voom version 2 is off to a good start with its EchoStar deal, but the HD content service could meet a fate similar to its predecessor if it doesn't eventually secure additional carriage deals.
In August EchoStar agreed to carry Rainbow Media's Voom HD Networks, the first step toward Rainbow's goal of establishing the service as an HD standard-bearer on a par with heavies like Discovery HD Theater and ESPN HD.
Getting there won't be easy. In addition to the difficulty of selling bandwidth-challenged cable operators on the value of its stable of 21 HD channels, Rainbow has yet to work out a deal with DirecTV. And while viewers are hungry for HD, networks with more recognizable names already fill some of the same niches as Voom.
GOLD IN THEM HILLS: A partnership with The North Face eases mountainous production costs for Voom's Rush channel.
Still, several factors could play out in Voom's favor as it seeks carriage deals with content distributors. Cable operators are toying with ways to conserve bandwidth for more hi-def content. DirecTV and EchoStar are increasing HD capacity as they launch additional satellites. And in 12 to 18 months, HD is expected to play a larger role in the battle for customers among cable, satellite distributors and telcos.
"I think we're in the right place at the right time," Josh Sapan, Rainbow Media CEO and president, says in his Manhattan corner office, situated nine floors above what Voom executives say is the largest HD post-production facility in the country. A retailer offering Voom will be able to tout it as a distinguishing element of an HD package, he adds.
In the EchoStar distribution deal, EchoStar subs who pay $9.99 a month for HD can gain access to 10 Voom channels for another $5. Next year, as EchoStar begins to deploy more advanced MPEG-4 boxes, Voom will cease to be an add-on, and all 21 Voom channels will be included in EchoStar's basic HD offering.
Voom has been banking content in anticipation of the larger deployment. The perception of a dearth of programming has dogged Voom since its early days, when it offered fewer than 1,000 hours of content and subscribers saw endless repeats. Today Voom offers roughly 3,000 hours of native HD content. It will add between 1,000 and 1,500 hours of new content in 2006, Voom co-general manager Greg Moyer says. Voom's 21 channels range from extreme sports and fashion to art and movies. Voom aims to offer something for everyone: concerts on Rave HD, art and museum tours on Gallery HD, exploration and nature on Equator HD and extreme sports on Rush HD. Plans for HD News call for 20 minutes of coverage hourly, up from 12.
WIN, PLACE AND SHOW: Rainbow Media CEO and president Josh Sapan (right) and Voom HD Networks co-GMs Nora Ryan and Greg Moyer are betting Voom will benefit from the competition for subs among cable, DBS and the telcos.
"We believe Voom will ultimately make it on the merits" of its programming, Sapan notes. "We think the industry competition and the focus on HD will serve our interests, but we're going to have to have programming that most people will like."
Fighting HD's High Costs
To lower mammoth programming costs, Voom has taken on sponsorship partners such as The North Face and Singapore's Media Development Authority; both will serve as underwriters. The North Face production partnership, announced in August, is creating the North Face Expedition series for Rush HD. The series will include expeditions to remote parts of the world, such as the Himalayas and the Arctic's Baffin Island; four episodes have been completed or are under way. The recently announced Singapore deal will provide productions from around the world for several Voom channels.
Another route to lowering programming costs would be to shutter several networks and offer a far smaller channel lineup. Sapan says his intention is to continue with all 21 channels, but that it's always worth evaluating the number of channels the service offers.
Time Warner's Solution
While satellite is Voom's biggest near-term opportunity, the cable distribution market will be tougher to crack. Operators have "expressed that 21 [hi-def channels] is a lot to swallow," Sapan concedes. "It's...a very big bandwidth request" for cable.
But some cable operators are pulling triggers that would allow them to at least double the number of HD nets they carry. Time Warner Cable could hypothetically carry all of the Voom networks once it has deployed switched digital video, says Kevin Leddy, SVP, strategy and development, for the MSO.
Even if cable operators make room for such a large offering, some question why viewers need Voom if they're already watching similar content on other HD outlets, such as Discovery HD Theater, PBS, ESPN HD and ESPN2 HD and, soon, National Geographic HD and MTV's new HD channel, MHD.
"The more HD content that becomes available, the less valuable is niche content or content that is valuable only by virtue of it being in HD," Yankee Group analyst Adi Kishore says.
With EchoStar in his pocket, there's less pressure on Sapan to immediately cut a deal with another distributor. Kagan estimates EchoStar will add 4.8 million hi-def subscribers in the next five years, ending 2010 with 5.5 million, all of whom will get Voom's HD channels.
International Ambitions
And while Sapan's working on deals stateside, there are opportunities abroad through the new Rainbow International affiliate. Overseas, Voom will be part of an offering that includes Rainbow's popular AMC and IFC networks and Mag Rack.
Internationally "there's a huge void almost everywhere" when it comes to HD programming, says Glenn Oakley, SVP, business development, Rainbow. He sees most of the opportunity initially in the United Kingdom, France and Germany. "They are several years behind us in take-up of HD." (At press time, Rainbow announced a deal to deliver Voom programming to Mandarin Oriental hotels overseas).
If Sapan has his way, Voom could become the next Discovery--a stable of networks with household name recognition. But Voom won't get there without additional U.S. carriage.
Sapan, an advocate of creating original programming suited to new technologies, says taking the risk of developing such content--and carrying it--are worth it.
Such opportunities are "less provable as something that will create great content immediately," Sapan says. "They involve a little more speculation, and slightly more risk, but they can also develop the greatest reward."
Charlie Ergen didn't care about Voom's turbulent background. Rather, he saw something for his subscribers--lots of high-definition programming. Can Voom attract more customers?
By Mavis Scanlon
Voom version 1 failed as a stand-alone satellite and programming service. Voom version 2 is off to a good start with its EchoStar deal, but the HD content service could meet a fate similar to its predecessor if it doesn't eventually secure additional carriage deals.
In August EchoStar agreed to carry Rainbow Media's Voom HD Networks, the first step toward Rainbow's goal of establishing the service as an HD standard-bearer on a par with heavies like Discovery HD Theater and ESPN HD.
Getting there won't be easy. In addition to the difficulty of selling bandwidth-challenged cable operators on the value of its stable of 21 HD channels, Rainbow has yet to work out a deal with DirecTV. And while viewers are hungry for HD, networks with more recognizable names already fill some of the same niches as Voom.
GOLD IN THEM HILLS: A partnership with The North Face eases mountainous production costs for Voom's Rush channel.
Still, several factors could play out in Voom's favor as it seeks carriage deals with content distributors. Cable operators are toying with ways to conserve bandwidth for more hi-def content. DirecTV and EchoStar are increasing HD capacity as they launch additional satellites. And in 12 to 18 months, HD is expected to play a larger role in the battle for customers among cable, satellite distributors and telcos.
"I think we're in the right place at the right time," Josh Sapan, Rainbow Media CEO and president, says in his Manhattan corner office, situated nine floors above what Voom executives say is the largest HD post-production facility in the country. A retailer offering Voom will be able to tout it as a distinguishing element of an HD package, he adds.
In the EchoStar distribution deal, EchoStar subs who pay $9.99 a month for HD can gain access to 10 Voom channels for another $5. Next year, as EchoStar begins to deploy more advanced MPEG-4 boxes, Voom will cease to be an add-on, and all 21 Voom channels will be included in EchoStar's basic HD offering.
Voom has been banking content in anticipation of the larger deployment. The perception of a dearth of programming has dogged Voom since its early days, when it offered fewer than 1,000 hours of content and subscribers saw endless repeats. Today Voom offers roughly 3,000 hours of native HD content. It will add between 1,000 and 1,500 hours of new content in 2006, Voom co-general manager Greg Moyer says. Voom's 21 channels range from extreme sports and fashion to art and movies. Voom aims to offer something for everyone: concerts on Rave HD, art and museum tours on Gallery HD, exploration and nature on Equator HD and extreme sports on Rush HD. Plans for HD News call for 20 minutes of coverage hourly, up from 12.
WIN, PLACE AND SHOW: Rainbow Media CEO and president Josh Sapan (right) and Voom HD Networks co-GMs Nora Ryan and Greg Moyer are betting Voom will benefit from the competition for subs among cable, DBS and the telcos.
"We believe Voom will ultimately make it on the merits" of its programming, Sapan notes. "We think the industry competition and the focus on HD will serve our interests, but we're going to have to have programming that most people will like."
Fighting HD's High Costs
To lower mammoth programming costs, Voom has taken on sponsorship partners such as The North Face and Singapore's Media Development Authority; both will serve as underwriters. The North Face production partnership, announced in August, is creating the North Face Expedition series for Rush HD. The series will include expeditions to remote parts of the world, such as the Himalayas and the Arctic's Baffin Island; four episodes have been completed or are under way. The recently announced Singapore deal will provide productions from around the world for several Voom channels.
Another route to lowering programming costs would be to shutter several networks and offer a far smaller channel lineup. Sapan says his intention is to continue with all 21 channels, but that it's always worth evaluating the number of channels the service offers.
Time Warner's Solution
While satellite is Voom's biggest near-term opportunity, the cable distribution market will be tougher to crack. Operators have "expressed that 21 [hi-def channels] is a lot to swallow," Sapan concedes. "It's...a very big bandwidth request" for cable.
But some cable operators are pulling triggers that would allow them to at least double the number of HD nets they carry. Time Warner Cable could hypothetically carry all of the Voom networks once it has deployed switched digital video, says Kevin Leddy, SVP, strategy and development, for the MSO.
Even if cable operators make room for such a large offering, some question why viewers need Voom if they're already watching similar content on other HD outlets, such as Discovery HD Theater, PBS, ESPN HD and ESPN2 HD and, soon, National Geographic HD and MTV's new HD channel, MHD.
"The more HD content that becomes available, the less valuable is niche content or content that is valuable only by virtue of it being in HD," Yankee Group analyst Adi Kishore says.
With EchoStar in his pocket, there's less pressure on Sapan to immediately cut a deal with another distributor. Kagan estimates EchoStar will add 4.8 million hi-def subscribers in the next five years, ending 2010 with 5.5 million, all of whom will get Voom's HD channels.
International Ambitions
And while Sapan's working on deals stateside, there are opportunities abroad through the new Rainbow International affiliate. Overseas, Voom will be part of an offering that includes Rainbow's popular AMC and IFC networks and Mag Rack.
Internationally "there's a huge void almost everywhere" when it comes to HD programming, says Glenn Oakley, SVP, business development, Rainbow. He sees most of the opportunity initially in the United Kingdom, France and Germany. "They are several years behind us in take-up of HD." (At press time, Rainbow announced a deal to deliver Voom programming to Mandarin Oriental hotels overseas).
If Sapan has his way, Voom could become the next Discovery--a stable of networks with household name recognition. But Voom won't get there without additional U.S. carriage.
Sapan, an advocate of creating original programming suited to new technologies, says taking the risk of developing such content--and carrying it--are worth it.
Such opportunities are "less provable as something that will create great content immediately," Sapan says. "They involve a little more speculation, and slightly more risk, but they can also develop the greatest reward."
VOOM HD to be bigger and better than ever...
Very nice find! I posted this in the Pub Members Forum early this week...seems to be right on target with the information posted in this article:
I wrote a letter to Mr. Dolan detailing how VOOM HD went from being a valued HD service to being one of near contempt after being moved over to Dish Network: endlessly looping and very little new programming. I received a very nice reply from a GM at VOOM HD Networks this morning. Here is the relevant portion of the reply I would like to share with Pub Members:
"We have been working with our new distribution partner, Echostar, to transition VOOM to Dish Network's infrastructure. Within the next few months we will be expanding the channel lineup as well as the total program offering. You can expect the expanded offering by the beginning of the new year; our goal is for you to find it even better in quantity and quality than what you first experienced."
Very nice find! I posted this in the Pub Members Forum early this week...seems to be right on target with the information posted in this article:
I wrote a letter to Mr. Dolan detailing how VOOM HD went from being a valued HD service to being one of near contempt after being moved over to Dish Network: endlessly looping and very little new programming. I received a very nice reply from a GM at VOOM HD Networks this morning. Here is the relevant portion of the reply I would like to share with Pub Members:
"We have been working with our new distribution partner, Echostar, to transition VOOM to Dish Network's infrastructure. Within the next few months we will be expanding the channel lineup as well as the total program offering. You can expect the expanded offering by the beginning of the new year; our goal is for you to find it even better in quantity and quality than what you first experienced."
Wow great information.. just made it a sitcky.. I wonder when echo will stop charging the 5 bucks..
The price of the new hd pack will probably be anywhere from 14.99 - 19.99 a month. They have given most new hd subs a 5.00 discount for 6 months. So if you sub to the hd pack and voom for 9.99 +5.00 , you were still only paying 9.99 .
Really? I think I've been paying 9.99 & 5.00.
Since right now there is only one HD Pak, and Voom is a 5.00 add on. I do expect the price to go up once the remaining Voom channels are added. But I do think you are right, they will add the Voom 21 into the HD Pak and probably raise the price to around 20 bucks.
Since right now there is only one HD Pak, and Voom is a 5.00 add on. I do expect the price to go up once the remaining Voom channels are added. But I do think you are right, they will add the Voom 21 into the HD Pak and probably raise the price to around 20 bucks.
"I think we're in the right place at the right time," Josh Sapan, Rainbow Media CEO and president, says in his Manhattan corner office, situated nine floors above what Voom executives say is the largest HD post-production facility in the country.
I got an idea - how about you move out of the most expensive area in the country to reduce your programming costs?
I got an idea - how about you move out of the most expensive area in the country to reduce your programming costs?
Bradtothebone said:
I don't expect E* to raise the price of the HD Pak when the additional 11 VOOM Originals are added. I do expect the price to go up when they start to add more national HD. Going into 2006 there are some well known networks announcing HD versions, hopefully then Charley will find some compelling content to add.
This is only my opinion though.
While I think this is good news, if you do the math, it isn't all that impressive.
Let's say Dish adds all 21 VOOM channels. Then VOOM adds 1000 to 1500 hours of new HD programming. That's only 50-75 hours per channel per YEAR, or 4-6 hours per month per channel.
Now if I'm paying $60 per year for VOOM and they add 300-400 hours that I might watch, that's still a reasonable deal.
Let's say Dish adds all 21 VOOM channels. Then VOOM adds 1000 to 1500 hours of new HD programming. That's only 50-75 hours per channel per YEAR, or 4-6 hours per month per channel.
Now if I'm paying $60 per year for VOOM and they add 300-400 hours that I might watch, that's still a reasonable deal.
Another way to look at it is that you could watch 8 hours of new content per day, five days a week, for six to nine months. How much TV do you watch?Tom Bombadil said:
Mario
Walter L. said:
Re-read that and do the math.
Leaving out the News Channel:
9 channels now offering 3,000 hours of native HD content, or roughly 333 hours per channel.
20 channels in 2006 offering 4,000 to 4,500 hours of native content, or roughly 200 to 225 hours per channel.
$10 for this? The repeat are about to get FAR WORSE!!!!
Does "new content" mean Voom original production as that seen on Ultra, Equator, Gallery, Rave, Rush and Worldsport? Or does it mean Voom original production plus telecined movies? From the context of the article, I would say the former.
