Voom Has Big Holes In Basic-Net Lineup
By R. Thomas Umstead -- Multichannel News, 10/19/2003 8:00:00 PM
Cablevision Systems Corp.'s ambitious Voom direct-broadcast satellite service features a cornucopia of HDTV networks — but does have some holes in terms of existing high-definition services.
Where it really has holes, though, is in the standard-definition lineup.
Cablevision executives say they are talking to all potential parties about distributing their services in standard- and high-definition formats, and that they expect their "cable favorites" list to burgeon beyond 40.
Deals with Viacom Inc.-owned MTV Networks and Showtime, for example, got signed only hours before last Wednesday's coming-out press conference and service launch.
But some cable-network executives last week said they were beginning to wonder whether they'd find a place on Voom.
Along with 22 HD services — rising to 39 by February — Cablevision announced deals with about 34 standard-definition channels last week.
That's a far cry from the 200-plus basic-tier services currently offered in the marketplace. Including Nickelodeon, a late entry to the package, Voom's "cable favorites" roster included three of the top 10-rated basic cable channels: Disney Channel, Nickelodeon and TLC.
Conspicuously absent: all of the Turner Broadcasting System Inc.-owned networks, including Turner Network Television and Cable News Network; and The Walt Disney Co.'s ESPN portfolio of networks.
Also missing are such staples as Lifetime Television, Fox News Channel, Black Entertainment Television, Scripps Networks' Food Network and Home & Garden Television and Universal Television Group-owned USA Network and Sci Fi Channel.
None of the nation's more than 20 regional sports networks — including those owned and operated by Cablevision's Rainbow Media Holdings Inc. division — are on board.
Cablevision executives said negotiations were ongoing and they expect to keep expanding the lineup as time goes by.
Executives from most of those networks — including TBS, ESPN and Fox News — confirm negotiations are ongoing.
Because Voom is HD-centric, it doesn't intend to match DirecTV or EchoStar Communications Corp.'s Dish Network channel for channel.
"They're positioning themselves as a satellite-in-the-sky HD tier," one executive from a basic network said. "They're not necessarily looking at it as a means to replace cable, but rather to complement it. It's not a head-to-head, where we have to have everything they have."
One sports-network executive said Cablevision wasn't in a rush to launch regional sports networks because of the toll they'd take on Voom's capacity.
"It's not something that they want to carry in the first move, including their own regional sports networks," he said. "It's all a bandwidth issue."
A Cablevision spokeswoman would not comment on such industry comments, but said the company's vision for Voom has always been to provide programming to an underserved HD market.
"This is a compelling value to consumers investing in HD technology, and there's a lack of [HD] programming in the marketplace," she said.
In addition to Disney Channel, Nickelodeon and TLC, networks listed on Voom's standard-definition tier include: A&E Network; Biography Channel; The History Channel; ABC Family; SoapNet; Toon Disney; Animal Planet; Discovery Channel; Discovery Health; Court TV; CSPAN and C-SPAN2; E! Entertainment Television; Style; FX; Speed; Hallmark Channel; Fox Sports World; Game Show Network; NFL Network; Oxygen; Outdoor Life Channel; and the Travel Channel.
Cablevision's Rainbow-owned networks AMC, Fuse, IFC and WE: Women's Entertainment are on board.
Cablevision confirmed deals with Viacom Inc.'s MTV Networks channels Comedy Central, Nickelodeon, MTV: Music Television, Spike TV, VH1 and TV Land.
Voom has a lot of HD programming, but lacks the live sports programming that comes with ESPN HD and HDNet.
Deals are in place with premium programmers Showtime, Starz Encore Group and Playboy — but not with top premium network Home Box Office.
Janco Partners analyst Matt Harrington said he was concerned by the lack of live sports content.
"It does not seem that there is much there that's a driver on viewership," Harrigan said. "The sweet spot [for HDTV] is the heavy sports consumer."
Charles Dolan, chairman of both Voom and Cablevision Systems Corp., conceded some programmers are attempting to tie carriage of networks on Voom with broader deals on Cablevision. But he and other Voom officials stressed those deals are being kept strictly separate.
"Voom is negotiating for Voom, we're not negotiating for Cablevision," Dolan said. "For some of the industry that's a problem, but we'll get through it."
| Top-Rated Nets | |
|---|---|
| The 10 highest-rated cable networks in the third quarter of 2003. | |
| Network | Rating |
| * Have signed carriage deal with Voom. Source: ABC Cable Networks Group analysis of Nielsen Media Research data. |
|
| TNT | 2.1 |
| Disney Channel * | 1.9 |
| Lifetime | 1.8 |
| Nickelodeon * | 1.7 |
| Cartoon Network | 1.7 |
| USA | 1.6 |
| ESPN | 1.6 |
| TBS | 1.5 |
| Fox News Channel | 1.2 |
| TLC * | 1.1 |
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