Rainbow Media said it is shutting down the domestic operations of its Voom high-definition programming service.
The shutdown follows Dish Network’s decision in May to drop Voom’s 15 channels. The only other major distributor of the channels is Cablevision Systems, Rainbow’s parent company.
Rainbow sued EchoStar Communications, which was Dish’s parent company before it was spun off, over the carriage dispute.
Rainbow CEO Josh Sapan, in an internal e-mail, called the decision “difficult and painful.”
“Voom’s domestic business was made possible through an affiliation agreement between Rainbow and EchoStar, which was established in 2005. Unfortunately, earlier this year, a significant legal dispute arose with EchoStar. While that lawsuit is progressing, the expectation is that it will be at least a year before any sort of resolution is reached,” Mr. Sapan said. “Unfortunately, as we analyzed the opportunities and challenges in the current environment and the lawsuit, it became clear that we can no longer operate Voom domestically, particularly without EchoStar fulfilling its obligations and providing its support.”
The closure will result in an unspecified number of layoffs, although some staffers will move over to Voom’s international operations, which continue. Voom channels are available in about three dozen countries.
Senior VP Glenn Oakley will continue working on Voom’s international business. Another key Voom executive, Greg Moyer, was named president of Scripps Networks International earlier this week.