Voom's New Prices

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hdmitch22

Thread Starter
Member
Apr 30, 2004
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Voom's new prices include:
$49.90/month - VaVa $89.90
$199 installed
$9.50/equipment fee

OPTION 1:
Get additional receivers for a standard installation charge of $50 per receiver, plus a $14.50/month equipment fee per receiver.

So if I want 2 receivers, I would have to pay $249 to install?
And receiver one $9.50 and receiver two $14.50 per month to rent?
Is that right?

OPTION 2:
Buy + $499 installed...
Additional receivers can be purchased and installed for $299 each, plus a $5.00/month program access fee per receiver.

So that is almost $800 to get started?

How does Voom expect to survive with this new offer?

Does anyone have the new voomer drop off rate?

Thanks for the info.


PS - I am aware that you can still get voom for the old price at
retail locations until the weekend.
 
riffjim4069

riffjim4069

SatelliteGuys Master
Supporting Founder
Apr 7, 2004
35,239
312
SatelliteGuystonfieldville, U.S.A.
hdmitch22 said:
Does anyone have the new voomer drop off rate?
Do you mean the churn rate? If so, the following was taken directly from Rainbow Media Enterprises Amendment No. 1 to Form 10 Filing with the SEC:

"Since our launch in October 2003 through the end of April 2004, approximately 21% of the customers who had activated our service subsequently terminated the service."

My guess is they are trying to reduce the churn rate by imposing the hefty installation fee. IMO, this is the wrong plan of attack!!! At this point in time they should be providing "free" installation, "free" receivers (loaner) and require a one-year subscription.

"We have experienced significantly higher per subscriber acquisition costs than we originally expected. This has been heavily influenced by the relatively low number of new subscribers and by the subsidy in our current equipment offer. We must significantly reduce these costs over time to meet our long-term estimates and to be within our funding capabilities. We currently are unable to estimate our future subscriber acquisition costs. Future subscriber acquisition costs will depend upon how successful we are in attracting subscribers, which will allow us to spread certain costs over a larger base of new subscribers, and will also depend upon the extent to which we need to continue to offer subscribers subsidies, such as incentives to purchase receiver systems or free hardware installation."
 

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