Learning from Voom

Voom was thought to be the company that would be able to compete with DirecTV and Echostar in satellite service. However, after a $650 million loss it became clear that the company needed more than technology. By looking inside the Voom Company, you can learn from their business mistakes to avoid the same problems in your own business.

You Need More Than a Good Product

The Voom channels definitely had something to offer to their customers. Never before was such a wide selection of HD channels available for television viewers. However, it takes more than just a good product to make a profit. Market research needs to be done to see if anyone will buy the product. The money you put into research will definitely pay off to find out whether or not you can sell your product or not. You need to find out if you can make a valuable return on your investment or not. In the Voom case, their investment obviously did not provide the company with a profit.

Do Not do Business with Your Family

The Voom battle became a family feud. Charles Dolan, founder of Cablevision, felt that Voom was worth saving while his son the CEO, Jimmy Dolan, wanted to pull the plug. Eventually, Charles Dolan tried to buy Voom with the help of his other son. This caused major conflicts within the Dolan Family. You should avoid mixing family and business. This may seem like a harsh rule but it is something that can save a lot of heartache in the long run.

Know Your Competitors and Your Industry

One of the problems with Voom is that they did not expect the technological advances that their competitors had after they launched Voom. Know your competitors and know what type of industry you are in. Be aware of the outside forces that can affect your business. Is your industry known to change rapidly? Voom did not take into account what their competitors had up their sleeve and this became very detrimental to the business.

The Pain of Sunk Costs

It is hard to walk away from a large investment that does not give any returns. One must remember that a sunk cost is exactly what it sounds like; it is sunk, gone, vanished, kiss it goodbye. So many times businesses fall into the mistake of trying to save fallen projects because they have already put so much time and money into it. This was definitely the case with Voom. With the lost of $650 million Charles Dolan was bound to want to save part of the investment. This is an important lesson to learn in business. You must say goodbye to sunk costs.


Charles Dolan dreamed about creating a satellite company that could compete with DirecTV and Dish Network. However, almost no one was supporting to Charles Dolan in his cause at the end seeing that Voom was bound to fail. However, Charles Dolan would not listen to the other board of directors and continued in his efforts to save the dying business. It is important to sometimes swallow your pride and listen to the arguments of those around you to see if they possibly have some validity. Be open to what others are saying because they just might be right.

While it seemed that Voom had the capabilities to change the way viewers watch TV and to be very profitable, instead it failed shortly after its creation. This is because of a few business principles that were neglected. When working with your own new business, make sure that your business plan makes sense and that you pay particular attention to your team, the external factors that could affect your business, and know how to walk away when your great idea turns out to be a flop. If you are willing to do these things, you will avoid running into the same problems that Voom did.

Kaitlin Carruth is a client account specialist with 10x Marketing- More Visitors. More Buyers. More Revenue. To learn more about Voom, please visit I-Satellite.

In The News:

Gangnam Rest Hotel  Techstory
Sports briefs - Sports  Salina Journal
Satellite images of Beirut explosion show massive crater at port  Boston News, Weather, Sports | WHDH 7News

Satellite TV Deals FAQ

Satellite TV 'What'?So, what is a satellite TV?It's a complicated... Read More

HDTV and the iPod Photo: A Perfect Marriage?

They may seem like an odd combination, but the iPod... Read More

A Guide to Buying Your Next TV

It used to be simple; when you bought a new... Read More

How Satellite TV Works

Have you ever wondered how satellite TV works? With over... Read More

Dish Network vs DirecTV: Which Satellite Broadcast Provider Offers the Better Deal?

Whenever someone mentions about satellite TV in United States, Dish... Read More

Cable Vs Satellite TV - 7 Benefits To The Real Deal About Satellite TV Offer

In the United States, the two big satellite providers are... Read More

DirecTV vs. Dish Network -- Which Is Better?

The satellite TV systems and services offered by DirecTV and... Read More

How to Shop for Satellite TV Receivers and Dishes

It's undeniable - shopping for a new satellite tv system... Read More

Cable TV And Satellite TV - Which Is The Better System?

Cable TV and satellite TV - which is the better... Read More

Selecting a Satellite TV Network from the Audiences Perspective

The numbers of those who just connect their TV to... Read More

Plasma Compared To DLP Television and LCD

When you think of comparing plasma to DLP technology you... Read More

Insiders Review on Satellite TV Deals: Must Read For Those Who Are Looking For Free Satellite TV

Nowadays, I am sure that you are seeing ads for... Read More

Buying Satellite TV From Online Sources

Find Out What the Real Deal is Regarding Satellite TVWho... Read More

HDTV: An Introduction

HDTV stands for High Definition Television, and if you live... Read More

Satellite TV vs. Cable TV -- Which is Best?

The move is on. Last year millions of Americans switched... Read More

Looking For Satellite TV?

It was 1994 and I had moved into another home... Read More

The Potential Conundrum of Regulating Pay-TV

In last week's column, I argued the merits (or rather... Read More

How to Select a Video Display for Your Home Theater

First of all, don't assume you need a huge video... Read More

Digital Cable VS Satellite TV

Do you want to get more channels while saving money... Read More

Direct TV Deals a Blow to Unhappiness in Marriage

You might be surprised to learn that television is one... Read More

Direct TV Receiver

When a customer receives Direct TV programming, he or she... Read More

Amazing Things You Might Not Know About Television

The world's first colour television transmission occurred in John Logie... Read More

Home Theater Control ? Its The Remote, Stupid!

It's the one piece of equipment that can really make... Read More

Learning from Voom

Voom was thought to be the company that would be... Read More


Two new technologies in the world of TV, DLP and... Read More