| Cablevision’s VOOM To Be Spun Off? |
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| Home Theater News Industry-Trade News | |
| Written by Jerry Del Colliano | |
| Friday, 31 December 2004 | |
 Cablevision’s
HDTV-oriented satellite service VOOM is likely slated to be spun off,
says the Seattle Post Intelligencer. Despite sales of DTV sets in
October 2004 topping 1,000,000 units, VOOM has struggled. Cablevision
owns and operates a vast cable TV network, as well as a number of TV
networks, including AMC, The Independent Film Channel (IFC) and WE:
Women's Entertainment, in addition to the Clearview Cinemas chain of
movie theaters.
Cablevision said in a regulatory filing that the company would cease the spin-off in its current form and try to "pursue strategic alternatives" for the satellite business. According to online reports, VOOM has about 26,000 subscribers, creating in the neighborhood of $5,900,000 in revenue. Total operating expenses will top out at over $75,000,000 this year creating a virtual black hole of profitability, even for the deep-pocketed Cablevision. Both DirecTV and Dish Network are viable suitors for Voom’s satellite services. HDTV sets are selling like hotcakes, yet HD content is still pretty scarce during most popular programming times. The main reason for the lack of HDTV is the lack of bandwidth to broadcast it and Voom’s satellites offer a quick shot in the arm to one of the satellite providers. Recently, DirecTV said they would launch four new satellites to provide local HDTV signals from space to major market. With the acquisition of VOOM, this could become reality even sooner. Like this article? Bookmark and share with any of the sites below.        |
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