Defining VOD

TIM CLARK

Industry pundits who gathered at last week's Paul Kagan VOD Summit felt the video-on-demand name doesn't clearly define its versatility or depth of content beyond hit movies. B-movies, recorded commercials and video games will also drive VOD. Some felt VOD will meet or even exceed video store buy rates. Others weren't as optimistic.

Rob Jacobson, SVP-In Demand, thinks Kagan VOD projections are "quite robust" and need to be shaved back "quite a bit."

Jacobson says that until VOD has established a widespread presence, industry projections will be hard to define.

"It's hard to say what the exact numbers are because we don't have a full breadth of content."

Breadth of content needs to be stressed in order to lure consumers and drive buy rates.

"The industry hasn't even begun to market VOD," says Ray McDevitt, EVP-marketing & program management, Diva. Besides pricing and marketing, McDevitt says a number of titles, movie exhibit windows and digital penetration will help define the potential of VOD.

Coupled with a personal TV service, VOD actually becomes TOD or "television-on-demand," according to Kim LeMasters, CEO, Replay TV.

"Major advertisers understand the power of advertising on ITV," says LeMasters. "What they don't understand, they want to learn."

ReplayTV research indicates consumers will watch their favorite recorded commercials or commercials that might pertain to their own tailored interests.

"Today, we are seeing just the tip of the iceberg for advertisers and consumers," says LeMasters.

ReplayTV discovered that 10% of people polled found television to be entertaining by itself. By adding a personal TV service into the equation, the appeal factor jumps to 80%.