Video-On-Demand At Lower Cost

At the National Cable Television Association Convention in Chicago last week, several new vendors were exhibiting high-capacity video-on-demand (VOD) hardware, VOD-management software, and studio licensing deals aimed at helping cable operators get into VOD. Both Diva, which last year began providing cable operators with a turnkey VOD package, and Unisys, a computer company, showed VOD hardware and software packages. Unisysí system is used to provide movies to Viewerís Choice. Other premium cable networks and pay-per-view providers such as HBO and Showtime promoted the adaptability of their services to digital VOD. Intertainer Inc. has deals with all the major studios, except Paramount, to provide movies for VOD, concurrent with standard pay-per-view.VOD is experiencing substantial reduction in the cost of the large digital video servers needed to operate a system. Further, VOD does not have to singularly bear the burden of generating revenue to pay for the necessary digital infrastructure conversion of a cable system. Now with the potential for cable operators to realize multiple revenue streams from providing high-speed Internet access, telephony and e-commerce, VOD is well positioned to soon compete effectively with direct-broadcast satellite services.