Introduction
 
Cable-based VOD services are now up and running in the US, with early indications that demand for services is beginning to increase. However, the sector still faces challenges which need to be met before VOD can become the mass-market technology that operators hope will drive revenue growth in the longer term.
 

 
Scope
 
This brief provides an update on recent VOD developments over the past twelve months
 
Provides an overview of services and strategy developments across US, Europe and Asia
 
Highlights the different digital platforms that can be used to distribute VOD content, and which is likely to succeed in the long term
 
Provides examples of what operators can do in order to boost demand for VOD services
 
Highlights
 
VOD remains an important differentiator for major cable operators, providing a response to the high levels of competition faced from digital satellite providers. As a result, providing on-demand services will be crucial if cable companies are to attract new customers and retain existing subscribers .
 

 
While personal video recorders (PVRs) and VOD are often seen as competing technologies which are vying for consumer attention, Datamonitor asserts that a combination of the two offers the greatest potential. Recent observations of viewing behavior from the US shows that PVR owners watch more on-demand content than those without such a device.
 

 
Although VOD services are becoming increasingly commonplace, usage is still relatively low. Datamonitor believes that a combination of increased marketing and greater content availability will help to boost interest in these services, which will ultimately drive the revenue potential of the sector.
 

 
Reasons to Purchase
 
Understand how the video on demand market has developed over the past 12 months
 
Discover the ways in which operators can boost the appeal of services
 
Learn how operators are deploying PVRs in order to provide a more compelling service to consumers

TABLE OF CONTENTS
 
ABOUT DATAMONITOR 2
 
ACTION POINTS 5
 
Outline of this brief 5
 
Key findings 5
 
VOD OVERVIEW 6
 
What is VOD? 6
 
VOD can take many forms 7
 
Cable holds the VOD advantage 9
 
Demand for VOD is growing 11
 
Consumer education needed to boost usage 11
 
VOD still faces stiff competition 12
 
DVD/video sales and rental remain crucial to movie studios 13
 
PVR & VOD in harmony? 14
 
P2P threatens content security 15
 
Considerable investment in VOD technology required 15
 
Will VOD technology market consolidation aid adoption? 18
 
PROGRESS TO DATE 20
 
US cable operators forge ahead with VOD deployment 20
 
UK: on-demand market becoming increasingly competitive 23
 
Progress in selected other markets 27
 
France: Noos launches push VOD 27
 
Italy: Telecom Italia boosts broadband TV portal 27
 
Spain: Telefónica extends reach of Imagenio 28
 
Japan: VOD launches planned 28
 
Taiwan: largest telco strengthens VOD service 28
 
CONCLUSIONS 29
 
APPENDIX 30
 
Definitions 30
 
Future readings 30
 
SPP writing team 30
 
How to contact experts in your industry 31