Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Craig Moffett - Sanford C. Bernstein.
Craig Moffett - Sanford C. Bernstein
Good morning. I wonder if this is within the bounds that you set for the questions to ask. Mike, are there any specific debt covenants that are jeopardized by the inability to release audited financial statements?
For Tom, can you just talk about where the subscribers are coming from that are getting you to raise your subscriber guidance to 3.5% to 4%? Are these coming from satellite? Are they coming from new entrants to the paid TV category and how high can that eventually go?
Jim Dolan
Craig, we can let Tom answer the second part of your question, but we're not going to address the first part.
Craig Moffett - Sanford C. Bernstein
Okay, thanks.
Tom Rutledge
Craig, the subscribers are coming from satellite customers, generally. They are the biggest group of multi-channel consumers in our marketplace and we have a superior video service that has more high-definition channels, local market high-definition channels at a free price; there's no cost to the consumer. So you have HD adoption driving subscribers as well as the triple play. The value proposition with our high-speed data service and voice service combined with our video service makes it a very compelling offer and a value proposition for satellite subscribers.
In addition, in this quarter we're going to be launching additional switched video products. We're going to launch 60 more channels of ethnic programming and I think that will help round out our video package, so that in every sense, it will be superior to satellite.
Craig Moffett - Sanford C. Bernstein
Do you have a sense of, given the kind of growth that you've had, how high the number can conceivably go? I guess the other question is where is Verizon getting subscribers from, because they don't seem to be coming from you?
Tom Rutledge
To my knowledge they really don't have very many subscribers anywhere. But in our market, in the areas that they've been marketing about six months they have achieved approximately 2% penetration. In the total area that they're working they have less than 1%. So Verizon is not taking subscribers from us. I don't believe they're taking significant numbers from satellite either.
Our growth is coming throughout our footprint. It's coming from satellite subscribers, but it's also coming from additional multi-channel homes, people who are buying cable because of the value proposition in total with phone and data.
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