|
Dish network to distribute Voom's HD channels |
|
|
|
|
NEW YORK (AP) - Cablevision Systems Corp. salvaged some value from its money-losing satellite TV venture called Voom, announcing Friday a deal with EchoStar Communications Corp.'s Dish network to carry Voom's 21 high-definition channels.
Cablevision decided to shut down the Voom satellite TV service earlier this year after the business failed to grow a substantial subscriber base.
Cablevision said that the Dish network would carry 10 of Voom's high-definition TV channels at first, including channels with sports, animation and news programming, expanding to all 21 of Voom's channels next year. The financial terms of the deal were not disclosed.
Voom became the center of a family feud within Cablevision after James Dolan, the company's CEO, sided with board members against his father Charles, the company's chairman, in calling for the business to be shut down.
The company sold Voom's satellite to EchoStar, a move that Charles opposed. Charles tried to buy the remainder of Voom's assets from Cablevision privately, but he and the company never reached an agreement.
The company eventually said it would shut down the satellite subscription service but continue to try to find distribution deals for the channels.
Voom attracted fewer than 50,000 subscribers since its launch in 2003, a far cry from the 14 million subscribers of The DirecTV Group Inc. and the 11 million subscribers that Dish has.
Voom also never came close to being profitable, losing $661 million last year on revenues of $14.9 million.
Cablevision's shares fell 61 cents, or 2.3 percent, to $25.48 in afternoon trading on the New York Stock Exchange. The stock has traded in a 52-week range of $16.13 to $31.64.
|