VOD ready to roll, Yankee Group says
VOD's technology and upgrades are in place this year "to achieve the critical mass required for commercial deployment," a Yankee Group study says. The research organization says the technology will generate revenue of $65 million by the end of the year and will reach $1.98 billion by the end of 2005.
Video-on-Demand: How Soon Is Now? says that limited content availability from studio reluctance to release new titles and "challenging" bandwidth requirements are offset by lower equipment costs, plant upgrades and digital set-top box penetration, allowing more widespread deployment of the technology.
Yankee Group analyst Adi Kishore says interactive TV has had a lot of services included in it, resulting in a fuzziness regarding its deployment and practicality. "Now we are beginning to see a focus on individual ITV services by MSOs, and a decision to selectively deploy those that offer a clear revenue stream, reduce subscriber churn, and are difficult or impossible for satellite operators to match," Kishore says. Many turn to VOD as a solution.
Other findings say cable operators will drive the VOD deployment; VOD will not be deployed widely by telcos in the short term; VOD will be deployed regardless of bandwidth constraints, with some resulting service denials; content limitations will affect buy rates, if not rollouts; and content choices will grow beyond movies in the long term.