More on DISH / VOOM

[Scott Greczkowski]

The following was sent this week to dealers in its retailer "Facts Blast" newsletter and this portion concerns Dish / VOOM.

CABLEVISION



EchoStar announced that it has agreed to purchase certain satellite assets from Rainbow DBS Co., a subsidiary of Cablevision Systems Corporation, for $200 million. Specifically, EchoStar has agreed to purchase Rainbow 1, a direct broadcast satellite (“DBS”) located at 61.5 degrees West Longitude, together with the rights to 11 DBS frequencies at that location. The satellite includes 13 frequencies, up to 12 of which can be operated in “spot beam” mode. The EchoStar III satellite is also located at 61.5 degrees West Longitude and broadcasts DISH Network TV programming to hundreds of thousands of consumers today using DBS spectrum licensed to EchoStar at that location. EchoStar is assessing how the Rainbow satellite’s flexibility can best be utilized to enhance DISH Network’s existing service. Please note that we cannot offer the Voom television service via this satellite because the purchase does not include Voom’s programming, customer list or other related assets. The deal is subject to regulatory review, and at this time, we cannot predict exactly when it might close. For updates, please stay tuned to upcoming Retailer Chats and Facts Blasts.

 

[BFG]

Same thing...

 

[korsjs]

i just hope it is approved soon. i hate seeing the voomers hold out hope for something that looks like it will leave them looking for a new provider. i wonder if voom is sending something out to their 26,000 subscribers notifying them of the satellite sale and what to expect.

 

[Minsk1]

I hope that this E* deal will be dead soon like their previous deal to purchause D*. Remember the mood of D* backers couple years ago. I hope V* will survive (somehow).

Andrew

 

[tonyp56]

What do you think will happen to Voom if Dish doesn't buy some of their assest? I'm sorry but I don't see how Voom will survive another year let alone for now on. IMHO

 

[BobMurdoch]

WHO is going to pour $500 Million a year into a service that the market has deafeningly shown to not want?

They would need at least another 0 on the end of the subscriber numbers (260,000 instead of 26,000) to even hold ANY hope. Another case of the pioneer being killed while the guy who swoops in and buys the assets on the cheap makes out (see the Iridium Satellite Phone debacle for a similar situation)

 

[Zookster]

i wonder if voom is sending something out to their 26,000 subscribers notifying them of the satellite sale and what to expect.

I would be surprised since I just received an email from VOOM today reminding me that I only have one more month to sign up for 3 rooms for $1.

 

[rocatman]

The "Facts Blast" was probably put out by Dish because I am sure some retailers were telling potential customers that Dish would add the Voom HD channels. It also protects Dish from liabilities from retailers stating and/or hinting this to potential customers.

 

[tnsprin]

The "Facts Blast" was probably put out by Dish because I am sure some retailers were telling potential customers that Dish would add the Voom HD channels. It also protects Dish from liabilities from retailers stating and/or hinting this to potential customers.

Absolutely nothing changed from the original email I received from Dish on 1/20.

A copy available at
http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=dish&script=410&layout=-6&item_id=665115

 

[dfergie]

I get the feeling that Voom is not dead...Rainbow 1 is one sat...they still will have the new one right?

 

[bcope9]

What if Voom does the smart thing and only leases space from other birds? This would make sense if they want to stay alive. Besides leasing is how E* has gotten all the bandwidth and nothing to do with it yet.

 

[JohnL]

I get the feeling that Voom is not dead...Rainbow 1 is one sat...they still will have the new one right?

Sure, Voom did have a satellite or two on order both of which were cancelled. Even if the order was NOT cancelled, please tell me how Voom could use either satellite or Both with NO Transponder licenses to use as The sale of Rainbow 1 also includes their uplink center as well as all 11 transponder licenses that Voom uses to transmit their service.

Even though Voom has a core audience of 26,000 subs this is plain and simple a MONEY PIT that Cablevision and ANY OTHER company would never take on. Sorry but the writing is on the wall. Even if the sale is not approved Voom is DOOMED.

John

 

[mkm4]

The sale of Rainbow 1 also includes their uplink center

Their new, not yet completed uplink center. They are still using the original one, which wasn't included in the deal.

 

[Scott Greczkowski]

I do not believe that the construction of the new satellites has been canceled. And VOOM does not need a license to broadcast from the slots where the Satellites are supposed to go (they are leasing the spectrum from someone else who is licensed for that location)

Don't count VOOM out yet. No one knows what tricks they will pull out of their hat.

 

[mwgiii]

So Scott,

You think Voom may be selling the 61.5 sat & frequencys to provide cash until Voom can get the satellites up in the leased spectrum and come roaring back?

 

[rcbridge]

Could they be looking to lease some of them from Dish until a new bird can be obtained and launched?

 

[mothergoose45]

Voom isn't coming back, it would be a bad business decision. They won't do any better this time around. With every other cable/Sat provider getting more into HD, Voom would just crash again. Why would anyone invest in it. Cablevision won't.

 

[Scott Greczkowski]

I have no idea. They do seem to be pushing along though. I don't know how, I don't know why, but they are pusing along.

 

[BobMurdoch]

All of the Cablevision shareholders and Wall Street think it is dead. If they didn't, you would hear them pounding fists on tables on CNBC on a daily basis.

In the post-Enron era, corporations will not continue pouring money into ideas that shareholders hate..........

 

[chevyN8]

It's all about subscribers. They have to be pulling in enough money from subscribers to pay for the costs of running a satellite business. They don't have enough subscribers and the number isn't growing. If they do survive this, they have to come up with something to grow the number of users. I see ads on TV for VOOM quite often, so IMO people know it exists...they just don't want the product as it exists today.