[VOOM] VOOM Bankruptcy?

[mikehdtv]

New research from The Diffusion Group suggests that satellite HD=20
services will boom despite the impending failure of VOOM.

Just as direct broadcast satellite (DBS) video service providers=20
raised the bar with PVRs, expanded satellite HDTV offerings will=20
provoke cable companies to respond in kind. A new report from Dallas-
based research consultancy The Diffusion Group predicts that=20
DirecTV's recent announcement to deploy four new HD-capable=20
satellites over the next few years will spur cable competitors to=20
rapidly increase their HD offerings.

At the same time, and despite this new energy among DBS players,=20
upstart satellite and direct-terrestrial-television provider VOOM=20
will likely be reduced to licensing HD content, be absorbed by=20
another HD producer, or declare bankruptcy by year-end 2005.

"With DirecTV expanding its HD offerings with four new satellites,=20
the Company will have the capacity to deliver 1,000 additional local=20
and high-definition channels as well as 150 national high-definition=20
channels," says Scott Kipp, contributing analyst with The Diffusion=20
Group. "This will put DirecTV in an excellent position to grab a=20
significant portion of the 70 million U.S. households that will=20
be "HDTV-ready" by 2007."

Conversely, HD upstart VOOM is doomed. VOOM's recent SEC filing was=20
intended to prepare Rainbow Media (the parent company and subsidiary=20
of Cablevision) for spin-off as a separate company with its own=20
publicly traded stock. The spin-off was originally scheduled for=20
September pending SEC approval. Somewhat interesting was=20
Cablevision's claim that only by spinning-off Rainbow Media will=20
Cablevision be able to "reverse this trend and grow our customer=20
base quickly and significantly."

The VOOM service =96 launched less than one year ago =96 has attracted=20
only 29,000 subscribers, far short of the 200,000 pledged for year-
end 2004. After the company announced price increases and a=20
reduction in equipment subsidies during Q2 2004, subscriptions=20
decreased and churn increased. VOOM posted losses of $36 million in=20
Q1 2004 and $61.6 million in Q2 2004. Q3 2004 losses are expected to=20
exceed $80 million.

Full story at:
<http://www.emediawire.com/releases/2004/9/emw158048.htm>





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[hobesounddarryl]

[VOOM] Re: VOOM Bankruptcy?

This is a hot topic online. Keep in mind there is a bias to the report. Als=
=3D=0D
o, this is a report=20
aimed at stock investors NOT Voom subscribers. It is intended to motivate t=
=3D=0D
he purchase of=20
Satt company stock other than Voom. If it is 100% accurate (and you know ho=
=3D=0D
w often stock=20
analysts are 100% accurate about future forecasting), Voom subscribers can =
=3D=0D
still enjoy the=20
maximum amount of HD channels through the end of 2005. Then, we can switch =
=3D=0D
down to=20
one of the other guys and watch a tiny subset of HD channels. Then, somewhe=
=3D=0D
re toward or=20
in 2007 the Goliaths in this space may finally offer a large selection of H=
=3D=0D
D channels.=20

Nevertheless, in spite of the negative viewpoints of stock analysts, you ca=
=3D=0D
n enjoy Voom for=20
more than another year+ or not. If you are a stock investor and you trust s=
=3D=0D
tock analysts (I=20
am aware of some higher profile analysts who still had "buy" recommendation=
=3D=0D
s on Enron=20
late in the day after Enron filed bankruptcy), don't buy Rainbow stock. The=
=3D=0D
n you can enjoy=20
maximum HD channels without taking the risk of the stock losing value.

If you are not a stock investor, this kind of forecasting has little effect=
=3D=0D
on you until late=20
2005+.

Lastly, if you were thinking of trying Voom but this scares you, take the l=
=3D=0D
ease deal.=20
Virtually no risk no matter what happens. Or go with D* or E* and note how =
=3D=0D
much HD you=20
are NOT getting to watch on Voom for all of that time between now and late =
=3D=0D
2005+.


--- In VOOM@yahoogroups.com, "mikehdtv" <mikehdtv@y...> wrote:
> New research from The Diffusion Group suggests that satellite HD=20
> services will boom despite the impending failure of VOOM.
>=20
> Just as direct broadcast satellite (DBS) video service providers=20
> raised the bar with PVRs, expanded satellite HDTV offerings will=20
> provoke cable companies to respond in kind. A new report from Dallas-
> based research consultancy The Diffusion Group predicts that=20
> DirecTV's recent announcement to deploy four new HD-capable=20
> satellites over the next few years will spur cable competitors to=20
> rapidly increase their HD offerings.
>=20
> At the same time, and despite this new energy among DBS players,=20
> upstart satellite and direct-terrestrial-television provider VOOM=20
> will likely be reduced to licensing HD content, be absorbed by=20
> another HD producer, or declare bankruptcy by year-end 2005.
>=20
> "With DirecTV expanding its HD offerings with four new satellites,=20
> the Company will have the capacity to deliver 1,000 additional local=20
> and high-definition channels as well as 150 national high-definition=20
> channels," says Scott Kipp, contributing analyst with The Diffusion=20
> Group. "This will put DirecTV in an excellent position to grab a=20
> significant portion of the 70 million U.S. households that will=20
> be "HDTV-ready" by 2007."
>=20
> Conversely, HD upstart VOOM is doomed. VOOM's recent SEC filing was=20
> intended to prepare Rainbow Media (the parent company and subsidiary=20
> of Cablevision) for spin-off as a separate company with its own=20
> publicly traded stock. The spin-off was originally scheduled for=20
> September pending SEC approval. Somewhat interesting was=20
> Cablevision's claim that only by spinning-off Rainbow Media will=20
> Cablevision be able to "reverse this trend and grow our customer=20
> base quickly and significantly."
>=20
> The VOOM service =96 launched less than one year ago =96 has attracted=20
> only 29,000 subscribers, far short of the 200,000 pledged for year-
> end 2004. After the company announced price increases and a=20
> reduction in equipment subsidies during Q2 2004, subscriptions=20
> decreased and churn increased. VOOM posted losses of $36 million in=20
> Q1 2004 and $61.6 million in Q2 2004. Q3 2004 losses are expected to=20
> exceed $80 million.
>=20
> Full story at:
> <http://www.emediawire.com/releases/2004/9/emw158048.htm>



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<*> To unsubscribe from this group, send an email to:
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<*> Your use of Yahoo! Groups is subject to:
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=20