On demand's premium evolution: pay programmers find SVOD alters viewer habits.(BROADBAND SPECIAL REPORT: THE BUSINESS OF ON DEMAND)(Starz Entertainment Group)(Home Box Office Inc)(Showtime Networks Inc)(Video-on-demand)
Multichannel News, July, 2005 by Stump, Matt
Cable's three large premium-network suppliers--Home Box Office, Showtime Networks Inc. and Starz Entertainment Group--entered the subscription video-on-demand business hoping to generate a little cash through additional affiliate fees and lowered churn. It didn't take long for consumers to find HBO, Showtime and Starz offerings, as they've become the most popular subset of VOD usage.
The viewership popularity has paid off on the business front, with executives saying churn--a key metric for pay-TV channels--has dropped between 10% and 20% in systems that offer the programming in on-demand format. Now, solid viewership and churn-reduction evidence almost take a back seat to a new phenomenon. It starts with the exploration of on-demand...
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