Voom is targeting the wrong audience: Fewer than 7 million people have HDTV sets, and perhaps as few as 2 million actually have the digital tuners required to receive hi-def signals. Although the HDTV numbers are growing, Voom's target audience is too small.
Voom will be co-opted by DirecTV and EchoStar: The new service may pick up some early hi-def subscribers, but look for DirecTV and EchoStar to counter that by expanding their HDTV lineups in the coming months. Voom's biggest selling point could be wiped out by the middle of next year.
The satellite TV business has matured: DirecTV and EchoStar, which have been in business for a decade, now have about 20 million subscribers combined. Although satellite TV officials are loath to admit this, there may be only 15 million to 20 million potential subscribers still out there. (Many viewers cannot get satellite service because they either live in apartments or do not have a residence with a clear southern view of the sky.) DirecTV and EchoStar, which have spent billions on marketing and branding, would seem well positioned to get the lion's share of new subs. For Voom to succeed, it would have to take subscribers away from the existing services or somehow manage to leapfrog them in marketing awareness. With Voom's $749 price tag-hundreds of dollars more than DirecTV or EchoStar-well, good luck.
http://www.tvweek.com/technology/102003swann.html
Voom will be co-opted by DirecTV and EchoStar: The new service may pick up some early hi-def subscribers, but look for DirecTV and EchoStar to counter that by expanding their HDTV lineups in the coming months. Voom's biggest selling point could be wiped out by the middle of next year.
The satellite TV business has matured: DirecTV and EchoStar, which have been in business for a decade, now have about 20 million subscribers combined. Although satellite TV officials are loath to admit this, there may be only 15 million to 20 million potential subscribers still out there. (Many viewers cannot get satellite service because they either live in apartments or do not have a residence with a clear southern view of the sky.) DirecTV and EchoStar, which have spent billions on marketing and branding, would seem well positioned to get the lion's share of new subs. For Voom to succeed, it would have to take subscribers away from the existing services or somehow manage to leapfrog them in marketing awareness. With Voom's $749 price tag-hundreds of dollars more than DirecTV or EchoStar-well, good luck.
http://www.tvweek.com/technology/102003swann.html
