Is VOOM an add on Service or not?

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Sean Mota

SatelliteGuys Master
Original poster
Supporting Founder
Sep 8, 2003
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Voom will not survive as a merely add on Service. In my opinion it will have to provide a certain amount of SD channels (currently not available in HD) to entice people. I cannot see the majority paying for any combination of VOOM + (E* or D* or Cable). In order to get all HD channels deliver by VOOM one will have to get the $100/mth package that includes all HD channels + all SD channels. Based on this you might get lucky and get E*, D* or Cable for the rest of channels that V* does not deliver. This means your bill will run $100/mth for Voom only (if you add more receivers there might be a $5.00 fee per receiver) + your other provider...

Plus remember no NBA LP, no MLB Extra Inning, since they do not carry any regional sports channels.
 
I think a lot of consumers would expect cheaper programming costs with the high hardware costs and also expect a large availability in SD in addition to HD and competitive pricing on the SD channels. They could profit well on the HD channels even if they had to discount the SD channels a good bit but packaging all the SD content with the HD content as well. They could give consumers a deal where they sell the SD channels at or slightly above cost then make their profits on the HD channels. This would attract customers just from the savings on the SD channels and help Voom by preventing them from subsidizing with hardware costs in the beginning and keep their costs down but having the subsidizing in SD programming instead.
 
The argument has been made that there are two satellite providers (E* & D*) that provide SD channels already. Why not have Voom an exclusive service for HD channels? Chuck Nolan believes that he can compete with E* or D* and he believes that this is not an HD only service. He is in the business to compete not to be an add-on service.

Can Voom add only HD channels w/o SD channels? I do not think so because of the current programmers require satellite service to carry their entire package of channels, both SD and HD.

Can Voom say that the quality of the SD channels is better than E* or D* and therefore they have a competitive advantage? Here I heard the same when comparing E* and D*. Some channels look much better on V* than D* and viceversa...

If V* is to provide a complete satellite system, alias E* or D*, where is all the space will come? I know you will mpeg4 in a year. Yeah but before you can introduce mpeg4, you need a business model. You need a business model now that will satisfy consumers not only in the HD front but also in the SD front.

All the HD enthusiasts might say "we do not care about SD channels" but that is not the sentiment of the entire population of non-hd customers. As more HD customers become available, it might make an impact but for now E* and D* rule and V* will have a tough time selling a product that it is expensive (initial fee) and has little to offer to non-hd subscribers (compare to E* or D*). They do not even have an SD only receiver available as of today!!
 
Sean Mota said:
Voom will not survive as a merely add on Service. In my opinion it will have to provide a certain amount of SD channels (currently not available in HD) to entice people. I cannot see the majority paying for any combination of VOOM + (E* or D* or Cable). In order to get all HD channels deliver by VOOM one will have to get the $100/mth package that includes all HD channels + all SD channels. Based on this you might get lucky and get E*, D* or Cable for the rest of channels that V* does not deliver. This means your bill will run $100/mth for Voom only (if you add more receivers there might be a $5.00 fee per receiver) + your other provider...

Plus remember no NBA LP, no MLB Extra Inning, since they do not carry any regional sports channels.

If their business model is based on being an add-on service they would certainly be in trouble in my house. They may have alot of good HD programming but having two satellite boxes and all the wiring that goes with them would just be too much for my family to deal with. It might work OK as an add-on to basic cable though.
 
Sean Mota said:
Voom will not survive as a merely add on Service. In my opinion it will have to provide a certain amount of SD channels (currently not available in HD) to entice people.

They seem to be positioning themselves as an HD service in their press statements, but their roll out of SD in MPEG 2 muddies that business plan significantly. Quite a few high-end U.S. A/V consumers already have two satellite systems, just to get more HD, and they go to quite a bit of inconvenience and Voom-like expense to do that. I believe that Voom could survive as an add-on service if Cablevision were willing to retain Voom as a wholly-owned subsidiary and concentrate on HD for several years, rather than spinning it off as quickly as possible. Once E* moves everything important to their two superdish configurations, V* will be in a better position to bid for more bandwidth at 61.5, and maybe 148 as well. They could then roll out MPEG 4 SD content and entice the dual set-up folks to drop a provider. Since Cablevision apparently wants to get Voom off its books as soon as possible, I can't see it surviving as a stand-alone entity. I think Charlie will try to buy it and make it an HD add-on to DISH, dropping HD on 105 (but maybe that makes too much sense).

--- WCS
 
Just got a mailer from VOOM. They are going after a full service market.

HD + many of the popular SD stuff like CNN, TV Land and the likes. They also say you can get locals - but if you read the details it is with the provided OTA antenna.

Still looks promising. If they had a few more of the channels I watch, I would seriously consider it.

They are selling it at 39.95 and that includes one Movie pack like HBO or Showtime. The special includes 2 months free programming.

It also has a 30 day trial. You don't like it, they refund your money (since you do have to buy the receiver - nice to see them buy it back).
 
orcatek said:
Just got a mailer from VOOM. They are going after a full service market.

HD + many of the popular SD stuff like CNN, TV Land and the likes. They also say you can get locals - but if you read the details it is with the provided OTA antenna.

This is what I thought I heard and read from the beginning. Yet, the information out there from Voom users are that this is an HD avenue ONLY. Clearly Voom itself does not agree with that assessment. You need to read between the line with all the information being posted on the net.
 
My plan: pick up a used voom box after Mar 31, 2004 for cheap. There will be a flood of them from VOOM and users that kept them past the drop-dead date.

If the service is still running, I'll subscribe to it if I can pick up a box cheap enough. I have a spare single DTV LNB someone was going to toss in the shed. That should work just fine...
 
It is enough to cover me & family if the planned additions occur. Really need firewire or PVR before going completely Voom.
 
rudolpht said:
It is enough to cover me & family if the planned additions occur. Really need firewire or PVR before going completely Voom.

I guess you're keeping with your other service and keeping V* past the 3/31/04?
 
I will go completely Voom if Firewire boxes are out before end of March. At this point I don't see taking advantage of the money back guarantee, only taking advantage of more & more HD. :)

Tim
 
Sounds like a good possibility of being a future paperweight, unless they bring the prices down on the hardware.
 
pmb said:
My plan: pick up a used voom box after Mar 31, 2004 for cheap. There will be a flood of them from VOOM and users that kept them past the drop-dead date.

If the service is still running, I'll subscribe to it if I can pick up a box cheap enough. I have a spare single DTV LNB someone was going to toss in the shed. That should work just fine...

Yes. This looks like a good idea and may decide VOOM to change their policy regarding self-installation. I read that VOOM is making a profit on these installation as well which it is included in the $750 initial fee.
 

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