Video on demand (VOD) over DSL is beginning to look like a realistic option, says broadband analysts Point Topic, who is expecting subscriber figures to reach over one million by this time next year.
Point Topic estimates that as of this month there were at least 230,000 DSL subscribers worldwide with VOD, but as many operators push forward with ambitious rollout plans subscriber figures look set to rocket.
More efficient and cost effective networks distribution of video content and positive feedback from existing users are among some of the reasons that Point Topic gives for its postive outlook.
If this is true, business plans for VOD can expect to break-even reasonably early rather than suffer a long period of heavy losses.
Film studios are becoming more willing to agree content deals and broadband operators are starting to consider that VOD might become an essential part of every broadband portfolio rather than an expensive luxury says Point Topic.
VOD over cable industry is more tricky as it is already built upon video entertainment and because of the different technical characteristics of broadband distribution over cable networks. Many cable companies already offer near VOD but widespread VOD will require major network investment says the report and will happen as an evolutionary rather than revolutionary development.
By 2004, Point Topic expects 520,000 users to be using VOD over cable services, with Hong Kong’s PPCW and Italy’s FastWeb providing 390,000 users and 130,000 shared between ten other providers.
The following table shows an extract of the TV and VOD over cable services that are currently in customer trials or operating commerical services.
| Operator |
Service Location |
Service Description |
No. of VOD Subscribers |
| FastWeb |
Italy |
Internet, telephone, TV and VOD. |
110,147 at end 2003 |
| Kingston Communications |
Hull, UK |
City ILEC with broadband and interactive TV over ADSL, including VOD service, VOD relaunched in July 2001. |
More than 5000 at Feb 2004 |
| Video Networks |
London, UK |
VOD, TV and internet access via TV over DSL. Struggling with high cost base. |
3550 at early 2004 |
| Intertainer |
USA |
A pioneer of VOD, founded in 1996 to stream movies over ADSL and cable but ceased operations in Oct 2002 when the studios refused to continue supplying content on acceptable terms. Peaked at 147,000 subscribers. |
0 since Oct 2002 |
| PCCW |
Hong Kong |
VOD launched 1998 as Netvigator, withdrawn 2002. VOD to PCs only for Netvigator subscribers. |
250,000 video subscribers |
| Softbank Broadmedia |
Main Japanese Cities |
TV channels and VOD. |
50,000 at May 2004 |
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