VOOM & CVC Q2 Report

[Seanb61]

The important part first- source -

http://biz.yahoo.com/bw/040809/95421_1.html

Rainbow DBS - VOOM
As of June 30, 2004, Rainbow DBS had approximately 25,000
activated VOOM customers. For the second quarter of 2004, Rainbow DBS
reported net revenues of $2.7 million, consisting primarily of
subscription revenue, as well as sales and rental income associated
with satellite receivers and related equipment. No revenues were
recorded for the same period in 2003, as the service had not yet
launched. The operating loss for the second quarter totaled $81.5
million compared to an operating loss of $3.6 million in the
year-earlier period. The AOCF deficit for the second quarter 2004 was
$71.8 million compared to $3.5 million in the year-earlier period. The
operating loss and AOCF deficit were primarily attributable to
subscriber acquisition costs, content development costs for the VOOM
high definition channels, and general and administrative expenses.

 

[rang1995]

25,000 by july 1... way below MY estimates...they need something big to happen it seems to get a big boost

 

[squicken]

25k? That is awful. Did they release their churn rate?

 

[zubinh]

25,000

Half of whom come to satelliteguys.us to complain!

 

[r.jones1116]

25,000 by july 1... way below MY estimates...they need something big to happen it seems to get a big boost

Free install, no monthly rental charges on receivers, free Vavavoom package for first 3 months and offer to buy you out of current 1 yr contract with DTV or Dishnetwork. The only thing Voom should ask of you is a contract period long enough to recoup their investment in the customer.

Obviously they didn't have to do that for us but there are some people that require a little more enticing.

 

[Lucky]

25k? That is awful. Did they release their churn rate?

What does churn rate mean ?

 

[Hi-Vac]

2.7m in revenues divided by 25000 customers = $108.00 per sub!

 

[vurbano]

What does churn rate mean ?

the people who drop it. It does no good to use up say 50,000 recievers on new customers if you have a 50% churn rate and wind up with 25,000 customers. Thats a churn rate of 1 out of 2. aweful. Obviously Voom needs to rethink this "exclusive" crap.

 

[vurbano]

2.7m in revenues divided by 25000 customers = $108.00 per sub!

Makes sense, im paying 107.00

 

[Dvlos]

I don't think this has to do with the Voom Exclusives at all, I think the horror stories with installers, the PQ that doesn't necessarily grab you if you've seen a little better elsewhere, problems getting equipment upgrades for OTA, and some firmware issues kept people away. Problem is now they want to charge you more for the same PQ and $200 for your installer horror story.

 

[zubinh]

Churn Rate has improved.

21% of Voom Subscribers have disconnected. It used to be 40%.

 

[vurbano]

Churn Rate has improved.

21% of Voom Subscribers have disconnected. It used to be 40%.

It used to be 1 in 5 I thought (20%). It was 40? really?

 

[vurbano]

I don't think this has to do with the Voom Exclusives at all, I think the horror stories with installers, the PQ that doesn't necessarily grab you if you've seen a little better elsewhere,..........

Combining the Voom exclusives would have a lot to do with improving picture quality.

 

[ChetK]

Combining the Voom exclusives would have a lot to do with improving picture quality.

Vurbano,

I noticed a lot of people on here talk about "combining Voom exclusives", but it's really not that simple. Many of the exclusive channels are their own intities. Like Rave is it's own intity. The only channels that I can see Voom combining (and I would prefer it) are the 10 cinema waste channels.

 

[vurbano]

Vurbano,

I noticed a lot of people on here talk about "combining Voom exclusives", but it's really not that simple. Many of the exclusive channels are their own intities. Like Rave is it's own intity. The only channels that I can see Voom combining (and I would prefer it) are the 10 cinema waste channels.

I thought they were all owned and run by rainbow dbs and exclusive Voom content. Anyway you could gain 72mbps (6*12) just by going to cinema 5 and turning off that acid trip screen saver called Moov.

 

[Dvlos]

Yes but then how can you tell the not so informed VOom customer and hopefull Voom customers that you offer the most HD by offering 20 instead of 36? >I< wouldn't mind dropping channels in exchange for more b/w you will NEVER see me call and be like "Wait bring me back more Moov" it just seems like Voom's holding out, until they get the new dishes installed and/or WM9/MPEG4 comes around to do something with their programming. However if that time comes around and the PQ is the same, and they are trying to nickel and dime us on our HDTV I'm probably going to quit. As long as Voom's pushing the envelope in HD I'm with them. Right now they are in quantity not quality.

Also I still think Cablevision can do things to boost Voom without it involving "money" like allowing INHD or INHD content to get on Voom.

 

[Bruce]

Churn Rate has improved.

21% of Voom Subscribers have disconnected. It used to be 40%.

No, it was about 20% before.

 

[squicken]

20% is bad. I think Dish's and DirecTV's are <5%. Usually customer acquisition costs are $200+ per customer. I'm sure all of Voom's internal projections were for subs. to be much higher and churn to be much lower.

 

[zubinh]

No, it was about 20% before.

The following is a direct excerpt from the Dow Jones news story published today at 11:57Am:

"Satellite TV service Voom posted an operating loss of $81.5 million, compared with a $3.6 million operating loss a year ago. The company said it closed the quarter with 25,000 customers. Customer defections improved, but were still high at 21% as of the end of June. Earlier in the year, churn was as high as 40%. "

 

[Ilya]

20% is bad.

With $0 down and no-contract offer this is to be expected. Once VOOM starts locking customers into long-term contracts as D* and E* do, the Churn Rate will go down.