Wednesday, December 22, 2004
Is Voom Doomed?
The bell is starting to toll for HDTV satellite cable provider Voom. TV Perdictions.com had a great piece on some theories why the beleagured start-up might go belly up in 2005.
"1. Voom is Targeting the Wrong Audience
Voom has an impressive lineup of 30-plus HDTV channels. However, only 10-11 million people now have HDTV sets, Although the HDTV numbers are growing, the target audience is too small for a project this ambitious. The way it's spending money, Voom can't wait until
HDTV gets bigger.
"2. Voom will be co-opted by DIRECTV and EchoStar
DIRECTV just announced that it will launch four new satellites that will enable it to deliver 150 national HDTV channels by 2007 (Plus local HD signals). So much for Voom's competitive advantage.
"3. The Satellite TV business has Matured
DIRECTV and EchoStar, which have been in business for a decade, now have more than 20 million subscribers combined. Although satellite TV officials are loath to admit this, there may be only 15 million to 20 million potential subscribers still out there. (Many viewers cannot get satellite service because they either live in apartments or do not have a residence with a clear southern view of the sky.) DIRECTV and EchoStar, which have spent billions on marketing and branding, would seem well positioned to get the lion's share of new
subs. For Voom to succeed, it would have to take subscribers away from the existing services or somehow manage to leapfrog them in marketing awareness."
My question: would you get Voom?
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