What HD and SD channels will we be getting next? Since Rainbow DBS maintains their silence about these issues, I thought I would solicit your thoughts and ideas. Anyway, here is my take on the subject:
New HD Channels: The general consensus is that VOOM has reached maximum channel capacity after recently adding WUSA and the two FSNs. I just don't see any more HD channels coming until after they transition to MPEG-4/WM9 (SD channels) in January, which will free up additional transponder space for both SD and HD. During the 1st quarter 2005, I see the following HD channels being added to the line-up: AMC-HD, IFC-HD, WE-HD and perhaps the INHDs in order to appease the masses. This course of action makes perfect sense to me. Here are my reasons:
Reason #1 - Rainbow DBS needs money and AMC, IFC and WE are money making machines. Rainbow Media can sell these three HD channels to other DBS and Cable providers. Remember, one of VOOM's competitive advantages is they produce their own programming and can therefore increased revenue by selling these HD channels.
Reason #2 - Creating HD content for all three channels will be cost effective because HD facilities are already being used to create VOOM HD Exclusive content.
Reason #3 - There is already a great deal of available HD content created for Cinema10 that can be passed to the new HD channels...and vice-versa. Sure, we may have already seen it several times...but Joe Schmoe hasn't seen it on his Adelphia or Comcast cable service.
Reason #4 - While Rainbow Media can actually market and sell programming for these three HD channels, there is no way in hell they are going to get rid of their 21 HD Exclusives. Why? Because it is valuable Niche Market advantage! Of course, we all expecting the HD Exclusives to continue to evolve over time.
Reason #5 - Expect to see the INHDs, AMC, IFC and WE on VOOM much sooner than on D* or E*. Why? Because Rainbow Media owns AMC, IFC and WE and can offer favorable terms to Cable providers - a little tit for tat. As Bennie Hill used to say, "TAT!"
Comparatively speaking, it costs them peanuts to produce HD content for these three channels since they own the production facilities and the licensing business is already in place. As I said, Cable providers will be more than happy to negotiate favorable terms with Rainbow Media (INHDs<--->AMC, IFC and WE).
Reason #6 - With 35k subscribers, and with a potential niche market of 1.5 to 2.0 million customers, Cable does not see VOOM as direct competition at this time. It would benefit both parties to negotiate favorable terms as they compete against D* and E* for subscribers. Since Dolan is a Cable Guy...this may actually work. In fact, it is quite possible for Cuban to wind up with a namesake stuck up his proverbial you-know-what.
Impact Items #1 - Voom can't wait on this one; they can not fall asleep at the wheel yet again! Of course, with only 35k active subs it is possible to move quickly to implement the following items just as long as they and their partners, Installs Inc. & Sears & others, have their collective acts together: (All customers will receive prior written notification of upcoming changes and a schedule of completion)
*Note: It is important to note that the new dish, DVR, and MPEG-4/WM9 modules need to occur at roughly the same time in order to limit logistical problems and expenseS associate with Installs Inc. performing multiple service calls.
Impact Item #2 - Sorry, but I just don't see VOOM being too excited about adding subscribers until after much of the above is in place. Of course, they are busy planning this evolution and should have all major Vendors on-site to support this evolution...so it may be possible to perform the upgrades and begin a major marketing campaign at the same time.
Impact Item #3 - The Marketing Campaign begins:
New SD Channels: I expect that many of the cable favorites (Sci-Fi, HGTV, Food Lifetime, etc.) will be added during 1st Quarter 05 along with a few religious and home shopping channels in order to round out the lineup. Yep, as part of their business model they will need to appease the masses! Again, Rainbow Media can negotiate favorable terms because they own AMC, IFC, WE and their newly created HD equivalents. Of course, these new SD channels will be part of the larger marketing plan to solicit new customers.
Miscellaneous Items: I see potential for VOOM offering an HDTV ONLY subscription for those who wish to maintain their lifeline or basic cable service. The HDTV ONLY package would offer the 18 inch dish, STBs (this could be refurbished equipment), "no contact" requirement and a small $99 installation fee. Of course, the installation fee could be waived with a 6 month service agreement.
Anyway, this is what I speculate will happen in the coming months, but what the hell do I know! What do you think?
NOTE: Lurkers, Spammers and former VOOM customers need not post to this thread...unless you have something of substance to contribute.
New HD Channels: The general consensus is that VOOM has reached maximum channel capacity after recently adding WUSA and the two FSNs. I just don't see any more HD channels coming until after they transition to MPEG-4/WM9 (SD channels) in January, which will free up additional transponder space for both SD and HD. During the 1st quarter 2005, I see the following HD channels being added to the line-up: AMC-HD, IFC-HD, WE-HD and perhaps the INHDs in order to appease the masses. This course of action makes perfect sense to me. Here are my reasons:
Reason #1 - Rainbow DBS needs money and AMC, IFC and WE are money making machines. Rainbow Media can sell these three HD channels to other DBS and Cable providers. Remember, one of VOOM's competitive advantages is they produce their own programming and can therefore increased revenue by selling these HD channels.
Reason #2 - Creating HD content for all three channels will be cost effective because HD facilities are already being used to create VOOM HD Exclusive content.
Reason #3 - There is already a great deal of available HD content created for Cinema10 that can be passed to the new HD channels...and vice-versa. Sure, we may have already seen it several times...but Joe Schmoe hasn't seen it on his Adelphia or Comcast cable service.
Reason #4 - While Rainbow Media can actually market and sell programming for these three HD channels, there is no way in hell they are going to get rid of their 21 HD Exclusives. Why? Because it is valuable Niche Market advantage! Of course, we all expecting the HD Exclusives to continue to evolve over time.
Reason #5 - Expect to see the INHDs, AMC, IFC and WE on VOOM much sooner than on D* or E*. Why? Because Rainbow Media owns AMC, IFC and WE and can offer favorable terms to Cable providers - a little tit for tat. As Bennie Hill used to say, "TAT!"
Comparatively speaking, it costs them peanuts to produce HD content for these three channels since they own the production facilities and the licensing business is already in place. As I said, Cable providers will be more than happy to negotiate favorable terms with Rainbow Media (INHDs<--->AMC, IFC and WE).Reason #6 - With 35k subscribers, and with a potential niche market of 1.5 to 2.0 million customers, Cable does not see VOOM as direct competition at this time. It would benefit both parties to negotiate favorable terms as they compete against D* and E* for subscribers. Since Dolan is a Cable Guy...this may actually work. In fact, it is quite possible for Cuban to wind up with a namesake stuck up his proverbial you-know-what.
Impact Items #1 - Voom can't wait on this one; they can not fall asleep at the wheel yet again! Of course, with only 35k active subs it is possible to move quickly to implement the following items just as long as they and their partners, Installs Inc. & Sears & others, have their collective acts together: (All customers will receive prior written notification of upcoming changes and a schedule of completion)
*Note: It is important to note that the new dish, DVR, and MPEG-4/WM9 modules need to occur at roughly the same time in order to limit logistical problems and expenseS associate with Installs Inc. performing multiple service calls.
- New dish will be installed (October - December) if possible.
- Customer orders for the new DVR will be accepted starting 1 November.
- Customers will be informed that MPEG-4/WM9 modules will be mailed out the first week of January.
- Those not wanting to install their own module should call 1-800-GET-VOOM to schedule an installation appointment.
Impact Item #2 - Sorry, but I just don't see VOOM being too excited about adding subscribers until after much of the above is in place. Of course, they are busy planning this evolution and should have all major Vendors on-site to support this evolution...so it may be possible to perform the upgrades and begin a major marketing campaign at the same time.
Impact Item #3 - The Marketing Campaign begins:
- Current customers will be given an opportunity to maintain their existing "no contract" purchase/rental subscription or subscribe to a 1 year lease/purchase contract.
- There will be pricing/equipment or other incentives involved to keep existing customers for this 1 year period...your guess is as good as mine.
- New customers will be offered a "free installation"/no equipment to buy offer in exchange for a 1 year service agreement.
- VOOM will announce the 5 new HD channels and perhaps 1 or two others (Wealth-HD?): 45 seems to be good number in my book!
- Sears stores will all have a new VOOM display (this is happening right now!) and installation personnel will be better trained at Installs Inc. (which is happening to some degree).
New SD Channels: I expect that many of the cable favorites (Sci-Fi, HGTV, Food Lifetime, etc.) will be added during 1st Quarter 05 along with a few religious and home shopping channels in order to round out the lineup. Yep, as part of their business model they will need to appease the masses! Again, Rainbow Media can negotiate favorable terms because they own AMC, IFC, WE and their newly created HD equivalents. Of course, these new SD channels will be part of the larger marketing plan to solicit new customers.
Miscellaneous Items: I see potential for VOOM offering an HDTV ONLY subscription for those who wish to maintain their lifeline or basic cable service. The HDTV ONLY package would offer the 18 inch dish, STBs (this could be refurbished equipment), "no contact" requirement and a small $99 installation fee. Of course, the installation fee could be waived with a 6 month service agreement.
Anyway, this is what I speculate will happen in the coming months, but what the hell do I know! What do you think?
NOTE: Lurkers, Spammers and former VOOM customers need not post to this thread...unless you have something of substance to contribute.
