Shutting Down Voom HD Networks In U.S. Will Cost Cablevision At Least $45 Million

Last week, Cablevision (NYSE: CVC) finally admitted defeat for the once highly ambitious Voom HD service, announcing that it would close the domestic service early next year rather than continue with its own cable systems as the only distributor. Today, the company estimated in an SEC filing that shutting Voom down in the U.S. would result in a Q4 charge of between $45 million and $65 million as it writes down programming, equipment and other assets. Of that, some $25-to $27 million in cash will go to cover programming fees. Cablevision and its Rainbow Media Holdings subsidiary, which includes Voom, blame Dish Network’s decision to drop the service for its demise; Cablevision sued the company for $1 billion for breaching a distribution agreement earlier this year that dated back to when it was EchoStar (NSDQ: SATS).


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