No surprise: Ops feed off adult VOD revenue. (On Demand).(adult programming thrives on video-on-demand)(Industry Overview)

Multichannel News, April, 2003 by Stump, Matt

SEXUALLY EXPLICIT PROGRAMMING HAS BEEN A financial success for nearly every pay TV platform on which it appears, and video-on-demand is no exception. Cable's two principal adult programming providers, Playboy TV and The Erotic Network, have deployed their service on cable VOD platforms, and report buy-rate successes that haven't cannibalized their existing pay-per-view businesses.

TEN counts more than 5 million digital VOD homes, while Playboy counts 1.5 million, which means that most of cable's 7 million to 8 million household VOD base has access to adult product. Because adult content generates a bankable, predictable revenue stream, many of the expenses related to cable's early VOD rollout are funded by adult buys--something the providers of...

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