Satellite Updates and VOOM

harshness

SatelliteGuys Master
May 5, 2007
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VOOM had a "sordid" past.

You seem to have lost the section that talked about the date DISH dropped VOOM channels altogether.

Note also that this seems to be a second run for a whole lot more money:

http://www.dmwmedia.com/news/2008/06/03/voom-hd-claims-$1b-damages-dish-network-exit
 

riffjim4069

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Apr 7, 2004
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True, but that's why people come here to SatelliteGuys. Alas, I believe Charlie dropped VOOM to save money and this is VOOM's grab to get back whatever they can. VOOM can ask for 2.5B or whatver pie-in-the-sky figure they wish, but I don't see them getting more than 500-600M even if they were to prove their case. We shall see...
 

HDRoberts

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May 13, 2008
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True, but that's why people come here to SatelliteGuys. Alas, I believe Charlie dropped VOOM to save money and this is VOOM's grab to get back whatever they can. VOOM can ask for 2.5B or whatver pie-in-the-sky figure they wish, but I don't see them getting more than 500-600M even if they were to prove their case. We shall see...
And that's a big if. Lots of issues to sort out regarding the $100M/year on programming part of the agreement that Voom was to spend. Was it for 21 channels or 15? Does that number include certain overhead costs or not?

I just wish they could resolve this so we could get AMC and IFC in HD, plus maybe a few of the Voom channels still offered elsewhere.
 

lern4483

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Jun 6, 2004
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And that's a big if. Lots of issues to sort out regarding the $100M/year on programming part of the agreement that Voom was to spend. Was it for 21 channels or 15? Does that number include certain overhead costs or not?

I just wish they could resolve this so we could get AMC and IFC in HD, plus maybe a few of the Voom channels still offered elsewhere.
Im still missing MonstersHD as well as Rave...

It would be nice if they resurfaced somehow.

Dont think it will ever happen though.
Cablevision shut them down too soon...

With HD exploding they way it is it made no sense to shut down.
 

mdonnelly

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Aug 26, 2004
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Im still missing MonstersHD as well as Rave...

It would be nice if they resurfaced somehow.

Dont think it will ever happen though.
Cablevision shut them down too soon...

With HD exploding they way it is it made no sense to shut down.
Actually, it was an excellent reason to shut down. HD wasn't a novelty any more, it was becoming mainstream. VOOM as a product wasn't a deciding factor for customers making a provider choice. No providers would sink any money into VOOM programming if it wasn't going to bring them new business.
 

Scott Greczkowski

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VOOM should have morphed what became HD demo channels down into a handfull of real HD channels with real schedules. A number of the channels could still be alive and thriving today if they would have done this instead they wanted to force everyone to carry all 15 of their channels. That ultimately was the real issue with VOOM that killed it.
 

Geronimo

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This thread is very, very, very familiar.
 

orlmac

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Feb 15, 2008
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Scott, do you think there is any chance that what was MonstersHD or any other VOOM channels will ever resurface here in the U.S.?
 

riffjim4069

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Apr 7, 2004
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VOOM should have morphed what became HD demo channels down into a handfull of real HD channels with real schedules. A number of the channels could still be alive and thriving today if they would have done this instead they wanted to force everyone to carry all 15 of their channels. That ultimately was the real issue with VOOM that killed it.
I agree, but this was only the secondary reason that VOOM failed in my opinion. VOOM failed because of the horrible affiliation agreement that Dish Network signed with VOOM - they agreed to pay VOOM "super-premium" prices for HD in 2005, but by 2008 HD was no longer a premium service. In fact, according to the terms of the agreement DISH was supposed to be paying VOOM $5 per month for each and every HD customer (actually only 93% per the penetration requirement) by 2012, which is probably close to what DISH pays for the Starz or Showtime channels, and up to $6.43 per basic HD customer by 2019. With more than 11M estimated HD customer by the end of the contract (these esimates provided by VOOM), DISH would be paying VOOM roughly $70M per month or $840M per year to carry the VOOM HD channels. Yikes! Additionally, VOOM had no incentive to alter their 15-channel lineup (i.e., smaller programming bundles or a la carte) since DISH had already agreed to pay pay for all 15 HD channels for 15-years, and they would be required to offer similar terms to DISH. Needless to say, VOOM was not about to give-away their meal ticket.

In a nutshell...the Affiation Agreement killed VOOM and both parties were culpable since neither wanted to re-negotiate the agreement when HD no longer demanded premium prices (just look at what happened to HDNet and INHD). Again, I"m not sure if VOOM failed to meet their "spend requirement" or if DISH concocted reasons to legally or illegally terminate the affiliation agree. However, I can say that it makes no sense for VOOM not to meet their contractual obligations since DISH was their 15-year cash cow, and DISH had every reason to terminate the agreement...legally or illegally. Heck, under this agreement DISH ws required to pay VOOM potentially more than $800 million dollars in the final year of the contract. This is a programming expense that has a direct, long-term, impact on earnings whereas getting their arse handed to them in court, much like Tivo, would result in charges that do not impact earnings and, to be honest, in the long-run it is much, much, much cheaper than honoring the affiliation agreement.

- If anyone thinks that VOOM does not have a good shot of winning this case...they are not being objective.

- If anyone thinks that VOOM will be awarded billions should they prevail...they are probably incorrect.

- If anyone thinks that MonsterHD or any of the VOOM channels will reappear prior to this case concluding...this "ain't gonna happen" because it would serve to limit damages and support DISH's counterclaim that VOOM did not pursue other market opportunities.

- If anyone feels that VOOM will reappear as a 5, 10 or 15 channels lineup even if VOOM is awarded more than a billion dollars in this case...dream on! This is a money grab! We may see a MonstersHD or WorldSportHD some time in the future...but never VOOM HD.

In summary, VOOM is dead due to the "pseudo-exclusive" affiliation agreement, both business partners (that's what they were) not wanting to renegotiate the terms of the agrement or strategy to move the VOOM product forward, and the "money grab" to prove damages. It's now up to a judge and/or jury to decide who is telling the truth, who is legally correct, and assess liability and damages if warranted.
 

riffjim4069

SatelliteGuys Master
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Apr 7, 2004
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And that's a big if. Lots of issues to sort out regarding the $100M/year on programming part of the agreement that Voom was to spend. Was it for 21 channels or 15? Does that number include certain overhead costs or not?

I just wish they could resolve this so we could get AMC and IFC in HD, plus maybe a few of the Voom channels still offered elsewhere.
I have no idea who is going to win this case other than to say that it makes absolutely no sense why VOOM would meet their obligations since VOOM was the favorable end of this 15-year agreement...and it makes perfect sense why DISH would want to terminate the agreement.

I agree with you about AMC and IFC...they are two of my favorite channels on FiOS and Dish Network customers should have them in their lineup.
 

Pepper

DVR Addict~Mad Scientist
Supporting Founder
Mar 16, 2004
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Satsuma, AL
And without VOOM there as an example of pristine picture quality, the bar has been lowered and every other HD channel that existed back then looks worse now.

Remember (Discovery) HD Theatre before they added the popup ads and constantly changing channel bug? Looked a lot better back when they had to compete with VOOM in the picture quality department.
 

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