VOOM-21 to have long life!

Scott Greczkowski

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Sep 7, 2003
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The New York Newsday is reporting some great news for VOOM fans, which includes the fact that Cablevision will spend $100 million a year on the VOOM21 channels and their deal with Echostar for the VOOM 21 is 15 years!

http://www.newsday.com/business/ny-bzhd4254926may12,0,7052633,print.story?coll=ny-business-headlines

Cablevision still paying for service



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'); document.write('<EMBED SRC="http://adserver.trb.com/ads/newsday/house/profacts/profacts120_0903.swf" NAME=GA swLiveConnect=false WIDTH=120 height=90 QUALITY=high BGCOLOR=#FFFFFF MENU=false LOOP=false TYPE="application/x-shockwave-flash" PLUGINSPAGE="http://www.macromedia.com/shockwave/download/index.cgi?P1_Prod_Version=ShockwaveFlash">'); document.write('</EMBED>'); document.write('</NOEMBED>'); document.write('</OBJECT>'); } else { document.write(''); document.write(''); document.write(''); } // --></SCRIPT></TD></TR></TBODY></TABLE><!-- HTML ad style --><!-- /Ad Space: html.ng/tag=std&site=newsday&color=longisland&edition=newspaper&content=business&channel=main&adtype=rail&adsize=120xn&adplacement=1 --></TD></TR></TBODY></TABLE>Harry Berkowitz

May 12, 2005

Cablevision has agreed to spend at least $100 million per year to fund the 21 high-definition channels that are all that's left of the failed Voom satellite TV service.

The commitment was disclosed in a quarterly financial filing by Cablevision Systems Corp., which shut the Voom service April 30 but decided to keep operating the channels and pitching them for cable and satellite TV providers to carry.

The spending minimum, which is capped at $500 million, is part of a 15-year deal under which EchoStar Communications will offer the channels to its Dish Network customers. EchoStar gets a 20-percent stake in those channels under the deal, the filing disclosed.

If Cablevision reduces the number of HD channels, it can cut the spending to as low as $38 million per year. If it falls short of the minimums, EchoStar can drop the channels.

"It's an awful lot of money for Cablevision to continue to spend for these networks," said Craig Moffett, an analyst at investment firm Sanford C. Bernstein & Co.

Cablevision has said it invested about $1 billion in Voom, which attracted only 48,000 customers. It estimates the shutdown will cost as much as an additional $155 million, plus $45.8 million for settling liabilities.

Voom's sole satellite is being sold to EchoStar for $200 million.
Copyright 2005 Newsday Inc.
 

Cornstalkk

7-4-7
Supporting Founder
Apr 22, 2005
91
0
Ohio
I would be curious as to how many subscribers VoOM will have after those switching from the satellite service to E*, as well as those that added the Voom 10 to their existing HD pack.
 

bcope9

SatelliteGuys Family
Jun 15, 2004
107
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Thomson, GA
I would say that once the channels are changed over to 110/119/129 then all of the HD subs will get them. I have had them for 2 weeks now and really enjoy the sampling. I have watched stuff that I have no interest in.
 

Sean Mota

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Sep 8, 2003
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New York City
Here's the exact quote from SEC filing:

Source

NOTE 19. SUBSEQUENT EVENTS



In April 2005, subsidiaries of Cablevision and CSC Holdings entered into agreements with EchoStar Communications Corporation (“EchoStar”) relating to the launch and operation of the business of Rainbow HD Holdings, LLC, the Company’s VOOM 21 high-definition television programming service. Under those arrangements, EchoStar will initially distribute a portion of the Rainbow HD programming service and, beginning in 2006, if the contemplated transactions have been completed, will carry all 21 of the channels included in the Rainbow HD programming service. In connection with the arrangements, EchoStar would be issued a 20% interest in Rainbow HD Holdings, the Company’s subsidiary owning the 21 channels included in the Rainbow HD programming service, and that 20% interest would not be diluted until $500,000 in cash has been invested in Rainbow HD Holdings. The issuance of the 20% interest in Rainbow HD Holdings to EchoStar and EchoStar’s agreement to distribute all 21 of the channels included in the Rainbow HD programming service are subject to customary closing conditions, and the closing of the sale of the Company’s Rainbow 1 satellite to EchoStar.

Under the terms of our affiliation arrangements with EchoStar covering our VOOM 21 channels for a 15 year term, if we fail to invest $100,000 per year up to a maximum of $500,000 in the aggregate (which $100,000 amount may be reduced to no less than $38,000 if we decide in the future to reduce the number of channels) in the entity that owns and develops these channels, EchoStar may terminate the affiliation agreement. We have the right to terminate the affiliation agreement if the VOOM 21 service is discontinued in the future.
 

theBruce

The New Member of the Year
Supporting Founder
Nov 29, 2003
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$100 million is not a lot of money for 21 channels, that is only a little less then $5 million a year for each and for channels that hopefully will show 12 hours 'new' and 12 hours 'repeats' they will need a lot more money to pay for content.

Say you wanted to start your own Sci-Fi/Action channel.

These are real license fees per episode from the futon critic:

6-7 am-babylon 5 (syndicated) $97,500
7-8am-roswell (syndicated) $125,000
8-9am-x-files, the (syndicated) $325,000
9-10am-n.y.p.d. blue (syndicated) $450,000
10-11am-star trek:d.s.9 (syndicated) $700,000
11-12pm-star trek:voyager (syndicated) $700,000
12-1pm-c.s.i. (syndicated) $1,600,000
1-2pm-Alias (syndicated) $200,000
2-3pm-Angel (syndicated) $250,000
3-4pm-buffy/vampire slayer(syndicated) $625,000
4-5pm-ER (syndicated) $900,000
5-6pm-Law & Order (syndicated) $800,000

a years budget is blown in a day.
And no, I do not expect a line up like this, but this is what the channels like TNT, Sci-Fi, TBS pay for content, then deals with the movie studios for movies, it cost a lot of money to do a channel.
 

mperdue

Supporting Founder
Supporting Founder
Oct 17, 2004
2,068
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McCordsville, Indiana
mdonnelly said:
I was thinking that $100K was kind of low. $100M is a little more realistic.
The heading for the quoted section is...

CABLEVISION SYSTEMS CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands)
(Unaudited)​
 

jimmykce1

SatelliteGuys Pro
Apr 5, 2004
801
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It would be nice if cable companies can start transmitting VoOm programming. However, I guess the cable companies will have to go through DishNetwork to get the feed now.
 

mdonnelly

Supporting Founder
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Aug 26, 2004
7,111
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jimmykce1 said:
It would be nice if cable companies can start transmitting VoOm programming. However, I guess the cable companies will have to go through DishNetwork to get the feed now.
It's like INHD-1 & 2, in reverse. :D
 

Sean Mota

SatelliteGuys Master
Supporting Founder
Sep 8, 2003
18,932
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New York City
I think you have underestimated the contracts and the money that were already paid. La Liga Soccer already paid for 2005-2006 season. Equator HD has some contracts already paid. Gallery/lab/Auction/Ultra/HDnews already paid for their equipment on hand and they produced their own content. Animania --> Yes will need to pay for more content. HD cinema channels already have an extensive library of movies that were already paid for and only a fee needs to be paid to re-run them. I think $100M/year will suffice and hopefully it will increase as more subscribers sub to the Voom-tier and they get new outlets.
 

kfried001

SatelliteGuys Pro
Jan 9, 2004
352
0
bruce said:
$100 million is not a lot of money for 21 channels, that is only a little less then $5 million a year for each and for channels that hopefully will show 12 hours 'new' and 12 hours 'repeats' they will need a lot more money to pay for content.

Say you wanted to start your own Sci-Fi/Action channel.

These are real license fees per episode from the futon critic:

6-7 am-babylon 5 (syndicated) $97,500
7-8am-roswell (syndicated) $125,000
8-9am-x-files, the (syndicated) $325,000
9-10am-n.y.p.d. blue (syndicated) $450,000
10-11am-star trek:d.s.9 (syndicated) $700,000
11-12pm-star trek:voyager (syndicated) $700,000
12-1pm-c.s.i. (syndicated) $1,600,000
1-2pm-Alias (syndicated) $200,000
2-3pm-Angel (syndicated) $250,000
3-4pm-buffy/vampire slayer(syndicated) $625,000
4-5pm-ER (syndicated) $900,000
5-6pm-Law & Order (syndicated) $800,000

a years budget is blown in a day.
And no, I do not expect a line up like this, but this is what the channels like TNT, Sci-Fi, TBS pay for content, then deals with the movie studios for movies, it cost a lot of money to do a channel.
Didn't it say that $100M is the minimum and the cap is $500M per year ?
 

JamesJ

AKA Stuart628
Supporting Founder
Jul 21, 2004
8,167
22
Akron (Cleveland), Oh
I am confused, so if time warner wants to get these channels/package, they have to go through dish, I had heard elsewhere earlier that talks were going good with time warner and cablevision, which is kinda confusing cause then it would make sense that time warner is barking up the wrong tree they need to go to echostar and good ol mr charlie, is my thinking right or how far off am I here. and also wouldnt investment costs actually go down for cablevision the more that compaines like time warner, and such invest and buy into it? it would almost become self supporting would it not
 

Vicki

SatelliteGuys Pro
May 25, 2004
704
0
Rocklin, CA--near Sacramento
Jamey K said:
All of the VOOM threads should really fall into the E* catagories now.
Sorry, Jamey K, but I don't agree at this point in time. :no There will come a time when that will be totally true, but right now, I think both forums provide pertinent information, and the traffic on each forum will ultimately tell the tale of when the swan song should be heard...and the Mods will be the first to notice, I'm sure.

Thanks, again, though, for allowing me to join your Recovering VoOmer group last month! :D :) Hope you're doing well in your recovery! And hope you stay in touch, on whatever forum! :) Vicki
 

BFG

SatelliteGuys Master
Supporting Founder
Mar 2, 2004
8,207
0
Orlando
Threads about getting the V* channels on dish and question about dish programming, services, and equipment should be in the E* forum, but this is a story mainly about the Voom operations, and not really about E* service
 

Jamey K

Recovering Voomer
Supporting Founder
Feb 16, 2005
2,625
3
West Texas
Vicki said:
Thanks, again, though, for allowing me to join your Recovering VoOmer group last month! :D :) Hope you're doing well in your recovery! And hope you stay in touch, on whatever forum! :) Vicki

Why,Miss Vicki, You can join any group with me anytime. But I must disagree with you this one time. :)

Dish is mentioned as much as Voom in this forum anymore. Why hide? Be proud of your new E* service. Voom should be a sub-forum in the E* main forum.

JMO.
 

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