With HD video-on-demand (VOD) becoming one of the front lines for service providers looking to win over subscribers, the Comcast Media Center has come up with a “VOD Valuation Tool” to help cable operators assess the costs and return on investment of launching an HD VOD service.
The VOD Valuation Tool works with “VOD in a Box,” which is jointly offered by the Comcast Media Center (CMC) and Arris. The VOD in a Box service delivers up to 3,300 hours of centrally managed VOD programming per month, including HD VOD content.
Drawing from the CMC’s analysis of cable systems that have launched the VOD in a Box service, the online tool allows cable systems to input customized data specific to their system architecture and market to help determine, among other things, the expenses and additional revenues they can expect in the first five years following launch. The financial modeling tool also can help cable system operators project the length of time it will likely take for their VOD offering to generate a positive return on investment (ROI).
“Seeing is believing, especially when a cable system operator needs to demonstrate to funding sources the expected value of their investment,” said Gary Traver, senior vice president and chief operating officer for Comcast Media Center. “With the increasing importance of VOD as a way to provide a competitive lineup of HD video choices, especially for cable systems serving smaller markets, the VOD Valuation Tool brings tangible insight into the benefits that a managed VOD service can add to the business.”
The CMC’s analysis found that on average, affiliates using the VOD in a Box service increased its pay-per-view revenues by 17 percent, per month, for each of the first 12 months following their launch of the managed VOD service.
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