Analysis
EchoStar Could Boom With Voom
The satcaster's addition of 10 high-def channels should mean the addition of high-def subscribers.
By Phillip Swann
Washington, D.C. (May 2) -- Which TV provider now has the most national High-Definition TV channels?
You might think it's DIRECTV, which is running a series of commercials saying it's adding 1,500 HDTV channels. Or, perhaps Comcast or Time Warner, both of whom have also been aggressive in its HDTV marketing campaigns.
However, the answer is EchoStar's Dish Network.
Yes, EchoStar. The nation's second largest satellite TV service yesterday added 10 high-def channels from the ill-fated Voom satellite service, which closed Saturday night. With the Voom 10, EchoStar now offers 17 national HDTV channels (plus a HD version of CBS and a Pay-Per-View HD channel), which is more than anyone else.
(Comcast offers 15-19 HD channels in some markets, which includes nine national channels; the rest are locals and PBS feeds.)
Plus, EchoStar says it will add 11 more original high-def channels from Voom sometime next year.
Unlike DIRECTV and the cable operators, EchoStar now has the bandwidth to carry the extra Voom channels, thanks to its purchase of Voom's satellite from former parent Cablevision. (Cablevision last month decided to close Voom and sell its assets, including the service's primary satellite.) However, EchoStar's decision to add the Voom 10 is brilliant marketing. And, here's why:
1. DIRECTV's HDTV Service Is On Pause
DIRECTV last week launched the first of four satellites that will enable the satcaster to dramatically expand its High-Definition TV lineup. However, the first satellite will likely not be ready for at least 2-3 months, meaning that DIRECTV is unlikely to add any high-def channels until then. The TV provider has little room on its current satellites.
And even when the first new satellite is operational, DIRECTV has already committed to offering local high-def channels in 12 markets later this year. Consequently, the satcaster may not have the space to significantly expand its national HD lineup at that point. On HDTV, DIRECTV to now vulnerable to attack from EchoStar.
In addition, cable operators are also struggling to find room for more high-def channels. Comcast, for instance, recently added TNT HD in some cities -- but not all -- because of a lack of bandwidth.
So, for several months, EchoStar should be able to say it has the most national high-def channels in the nation. That boast could enable it to steal high-def owners from both DIRECTV and cable.
2. Voom's Audience Is Available
Despite offering nearly 40 HDTV channels in total, Voom signed up less than 50,000 subscribers in 18 months. So, you ask, how can EchoStar succeed with just 19 HDTV channels?
Easy. Many HDTV owners balked at subscribing to Voom because of its uncertain future. However, EchoStar, which has more than 11 million subscribers and nearly 10 years of experience, is solid as a rock. Any HDTV owner who considered subscribing to Voom will find EchoStar's new lineup - and reliable history -- very attractive.
With HDTVs now in more than 10 million U.S. homes, EchoStar would be wise to launch a national advertising campaign to reach this growing audience. Although EchoStar can not provide local HD -- a big obstacle, to be sure -- it can stress the national lineup and suggest that customers get an off-air antenna to get their local HD signals for free (if they have a high-def tuner.)
With the addition of the Voom 10, EchoStar says it's now the HDTV leader.
Many HDTV owners might agree.
EchoStar Could Boom With Voom
The satcaster's addition of 10 high-def channels should mean the addition of high-def subscribers.
By Phillip Swann
Washington, D.C. (May 2) -- Which TV provider now has the most national High-Definition TV channels?
You might think it's DIRECTV, which is running a series of commercials saying it's adding 1,500 HDTV channels. Or, perhaps Comcast or Time Warner, both of whom have also been aggressive in its HDTV marketing campaigns.
However, the answer is EchoStar's Dish Network.
Yes, EchoStar. The nation's second largest satellite TV service yesterday added 10 high-def channels from the ill-fated Voom satellite service, which closed Saturday night. With the Voom 10, EchoStar now offers 17 national HDTV channels (plus a HD version of CBS and a Pay-Per-View HD channel), which is more than anyone else.
(Comcast offers 15-19 HD channels in some markets, which includes nine national channels; the rest are locals and PBS feeds.)
Plus, EchoStar says it will add 11 more original high-def channels from Voom sometime next year.
Unlike DIRECTV and the cable operators, EchoStar now has the bandwidth to carry the extra Voom channels, thanks to its purchase of Voom's satellite from former parent Cablevision. (Cablevision last month decided to close Voom and sell its assets, including the service's primary satellite.) However, EchoStar's decision to add the Voom 10 is brilliant marketing. And, here's why:
1. DIRECTV's HDTV Service Is On Pause
DIRECTV last week launched the first of four satellites that will enable the satcaster to dramatically expand its High-Definition TV lineup. However, the first satellite will likely not be ready for at least 2-3 months, meaning that DIRECTV is unlikely to add any high-def channels until then. The TV provider has little room on its current satellites.
And even when the first new satellite is operational, DIRECTV has already committed to offering local high-def channels in 12 markets later this year. Consequently, the satcaster may not have the space to significantly expand its national HD lineup at that point. On HDTV, DIRECTV to now vulnerable to attack from EchoStar.
In addition, cable operators are also struggling to find room for more high-def channels. Comcast, for instance, recently added TNT HD in some cities -- but not all -- because of a lack of bandwidth.
So, for several months, EchoStar should be able to say it has the most national high-def channels in the nation. That boast could enable it to steal high-def owners from both DIRECTV and cable.
2. Voom's Audience Is Available
Despite offering nearly 40 HDTV channels in total, Voom signed up less than 50,000 subscribers in 18 months. So, you ask, how can EchoStar succeed with just 19 HDTV channels?
Easy. Many HDTV owners balked at subscribing to Voom because of its uncertain future. However, EchoStar, which has more than 11 million subscribers and nearly 10 years of experience, is solid as a rock. Any HDTV owner who considered subscribing to Voom will find EchoStar's new lineup - and reliable history -- very attractive.
With HDTVs now in more than 10 million U.S. homes, EchoStar would be wise to launch a national advertising campaign to reach this growing audience. Although EchoStar can not provide local HD -- a big obstacle, to be sure -- it can stress the national lineup and suggest that customers get an off-air antenna to get their local HD signals for free (if they have a high-def tuner.)
With the addition of the Voom 10, EchoStar says it's now the HDTV leader.
Many HDTV owners might agree.
