New 10-K up for Cablevision

[Bruce]

New 10-K up for Cablevision at:

http://www.sec.gov/Archives/edgar/data/784681/000104746905006818/a2153426z10-k.htm

Rainbow DBS

The Rainbow DBS business began operations in October 2003 with the introduction of the VOOMSM service, which carries a larger number of high-definition channels than any other satellite provider or cable television system. As of December 31, 2004, the VOOMSM service offering included over 30 channels in high-definition, including 21 currently exclusive VOOMSM channels and over 70 standard definition channels. The VOOMSM service is currently transmitted by the Rainbow DBS satellite, Rainbow 1, that was constructed by Lockheed Martin, successfully launched in July 2003 and delivered to its 61.5°W.L. orbital position. From this orbital position, the satellite can provide coverage to the contiguous United States, provided customers have a line of sight to the satellite. As of February 28, 2005, Rainbow DBS had approximately 40,000 subscribers.

 

[vurbano]

well this might shut up Lurker about the "source" crapola on the sub count.

 

[storageset]

I found this paragraph interesting.

The March 2005 Agreement between the Company and Charles and Thomas Dolan terminates on March 31, 2005. Charles F. Dolan has the right to terminate the agreement before that date. Upon any termination, any cash or shares deposited by Charles F. Dolan that have not been used to fund costs or segregated to pay costs associated with new commitments or other agreements will be returned to him and the shutdown of Rainbow DBS will be implemented immediately. In the event of a shutdown, the Company anticipates incurring significant costs relating to early termination of various contracts, other contractual obligations, employee termination benefits and other costs.

 

[vurbano]

I found this paragraph interesting.

The March 2005 Agreement between the Company and Charles and Thomas Dolan terminates on March 31, 2005. Charles F. Dolan has the right to terminate the agreement before that date. Upon any termination, any cash or shares deposited by Charles F. Dolan that have not been used to fund costs or segregated to pay costs associated with new commitments or other agreements will be returned to him and the shutdown of Rainbow DBS will be implemented immediately. In the event of a shutdown, the Company anticipates incurring significant costs relating to early termination of various contracts, other contractual obligations, employee termination benefits and other costs.

old news

 

[Bruce]

Rainbow DBS launched its VOOMSM service on October 15, 2003. The Rainbow DBS segment had not produced any revenues and incurred operating expenses of $89.7 million during 2003. For the year ended December 31, 2004, Rainbow DBS' net revenues amounted to $14.9 million and operating losses amounted to $661.4 million, including impairment charges of $354.8 million.

 

[Bruce]

Technical and operating expenses (excluding depreciation and amortization, including impairments) for the year ended December 31, 2004 increased $182.4 million as compared to the prior year primarily due to increases of $41.5 million in costs to license and develop content for the VOOM high definition channels, $20.3 million of costs primarily to operate the uplink and broadcast facility and the customer call center, $8.8 million of programming license fees and $2.9 million of costs of equipment sold and related installation. Additionally, the 2004 results include a write-down to net realizable value for inventory not deployed of $29.1 million, a write-down to net realizable value of licensed film assets of $75.8 million and a $4.0 million write-off of deposits (related to FCC construction bonds for milestones not anticipated to be met) recorded in conjunction with the Board of Directors' decision not to spin-off the DBS business, but instead to seek strategic alternatives.

 

[joep]

The first official document on the Voom subscriber count at 40K as of 2/28/05?

 

[Bruce]

The first official document on the Voom subscriber count at 40K as of 2/28/05?

Yes



Company anticipates incurring significant costs relating to early termination of various contracts, other contractual obligations, employee termination benefits and other costs.

The assets and liabilities of Rainbow DBS included in the consolidated balance sheet of the Company at December 31, 2004 consist of the following:
Cash, receivables, inventory, prepaid and other assets -$36,317,000
Plant and equipment, net and MVDDS licenses -$48,610,000
Satellite and related assets -$200,000,000
Total assets-$ 284,927,000


Accounts payable and accrued expenses -$53,661,000
Feature film liabilities and other liabilities -$77,303,000
Minority interest -$4,842,000

Total liabilities $135,806,000

 

[Bruce]

In April 2004, Rainbow DBS entered into a ten-year lease agreement for transponder space on a satellite, commencing in October 2004. Rainbow Media Holdings provided irrevocable letters of credit for $19,800,000 as a security deposit. Rainbow DBS will initially lease 13 transponders, increasing to 16 in January 2005, with the option of leasing additional transponders. The agreement contains early termination provisions whereby Rainbow DBS would be permitted on certain dates and in certain circumstances to terminate the agreement. In the event of early termination, Rainbow DBS would be required to pay an early termination penalty. In addition, Rainbow DBS would be required to make payments pursuant to the agreement up to the termination date.

The minimum future annual rentals for all operating leases during the next five years, including pole rentals from January 1, 2005 through December 31, 2009, and thereafter, at rates now in force are as follows:
2005 $ 103,906,000
2006 104,829,000
2007 98,436,000
2008 95,404,000
2009 92,769,000
Thereafter 559,223,000

 

[Voom4Me]

Rainbow DBS's take on their competition...

EchoStar and DirecTV have a highly-developed sales and distribution system. Their satellite receivers are sold in a significantly greater number of retail outlets than ours. As a result of these and other factors, Rainbow DBS' receivers and programming services are less well known to consumers than those of EchoStar and DirecTV. Due to this relative lack of consumer awareness and other factors, Rainbow DBS is at a competitive marketing disadvantage compared to EchoStar and DirecTV.

DirecTV and EchoStar are, and will be for the foreseeable future, in an advantageous position with regard to operational experience, market entry, programming, and possibly, volume discounts for programming offers.

Cable Operators enjoy certain competitive advantages inherent in cable television technology over DBS providers. For example, cable companies are able to provide analog service to multiple television sets within the same household at an incremental cost to the consumer that is lower than the cost to DBS providers of servicing multiple sets. Cable companies are also investing heavily in new digital technologies that allow them to bundle traditional analog video offerings with expanded high-quality digital video delivered terrestrially or via satellite and other services, such as two-way high-speed Internet access and Voice over Internet Protocol services on upgraded cable systems. For example, many cable companies now offer on-demand television services (including, in some cases, high definition on-demand services) and high-speed Internet access over their upgraded fiber optic systems. These bundled services may be attractive to consumers due to discounting of the bundled services and the fact that the consumer receives a single bill. This bundling trend is likely to continue in the future with the expansion of the provision of high definition television services throughout the cable industry.

Taken from the link posted by bruce... Might be old news, but thought it was interesting...

 

[Bruce]

Sean,
do I get a Sticky for this thread, if I get one, I will feel special and loved.

 

[Sean Mota]

Sure...

 

[Scott Greczkowski]

Aww is'nt that special. Group hug!!

NOT!!

 

[madpoet]

Look everyone... boo is sticky

 

[Bruce]

Look everyone... boo is sticky

If this is the end of Voom, it is only fitting that I get a sticky.


And I do hope it is not the end of Voom, we need more choices for providers, and my step-father will be mad at me since I recommend the service,and he has only had Voom for about a month now, and I have not had a chance to go over and check it out.

 

[James Long]

old news

Still the truth.

Glad to see someone finally put a sub number in a filing. For those quoting 46k or 47k please update your brain cells.

If this is the end of Voom, it is only fitting that I get a sticky.

Even if it isn't the end, it is a nice summary of where they stand.

JL

 

[Sean Mota]

Still the truth.

Glad to see someone finally put a sub number in a filing. For those quoting 46k or 47k please update your brain cells.

Even if it isn't the end, it is a nice summary of where they stand.

JL

justalurker, apply to yourself your own medicine... you were the one quoting less than 20k and not believing the ~ 40K figure in the other Press Release .


P.S. Exact Quote from JL on 3/2/05: "Anonymous sources are not confirmation they are just enshrined rumor mongers."

 

[LunkHead]

I bet they are close or over 50K buy the end of the month...2 weeks of installs since the report and 2 weeks of installs left to go...

I recently talked to an installer in my area and he said VOOM installs have really picked up....

Keeping my fingers crossed!

 

[GreatMac]

I bet they are close or over 50K buy the end of the month...2 weeks of installs since the report and 2 weeks of installs left to go...
...

I agree. Just upgraded to the larger dish and the installer mentioned he is doing a lot of Voom lately.

...For those quoting 46k or 47k please update your brain cells....JL

There are about 20,000 or so loose brain cells lurking around here: someone somehow lost them. With a 50% loss, it's amazing he can type on a keyboard :neener :neener :neener :neener :neener

 

[James Long]

justalurker, apply to yourself your own medicine... you were the one quoting less than 20k and not believing the ~ 40K figure in the other Press Release .

Not quoting, estimating. There is a difference. My estimate was presented as such, not as a fact, and was done BEFORE February 28th when the first hint of "46k" emerged. It was also a Dec 31st figure several forum readers were estimating back then ... - Based on this newly released figure, 30k would be a better estimate for Dec 31st, with 5k added each month after (and 5k still waiting on Feb 28th according to the unnamed source).

P.S. Exact Quote from JL on 3/2/05: "Anonymous sources are not confirmation they are just enshrined rumor mongers."

Still true. It's nice to see the SEC filed 10k "confirming" the alleged 46k and 46k w/5k waiting rumors.

JL