Can cable operators, programmers, advertisers design a VOD model that works?
By Jon Hemingway When it comes to video-on-demand (VOD), cable operators, networks and advertisers are a lot like eager summer tourists on a road trip: They know where they want to be but can’t agree on how to get there. Most TV executives agree that watching favorite primetime shows whenever you want will be a reality within the next few years—or sooner. According to a recent study by the Leichtman Research Group, the portion of U.S. digital-cable households that have used VOD grew from 25% in 2004 to 60% in 2006. And a study by PricewaterhouseCoopers (PwC) reveals that, although VOD represents a fraction of end-user spending on television distribution, the segment is by far the fastest-growing. Viewers will spend $2.1 billion on VOD services in 2007, a 23% rise from 2006. PwC projects such spending will double by 2011, to $4.2 billion, a compound annual growth rate of 19.5%. No other service element available today will grow as fast. But cable operators and advertisers are still tryi
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- Can cable operators, programmers, advertisers design a VOD model that works?
