Subscription VOD catches on: Pay-per-view proponents eye server capacity, price gap. (VB in Depth).(Brief Article)

Video Business, May, 2002 by Sweeting, Paul

NEW YORK--With the video-on-demand business developing mote slowly than expected, many cable operators ate shifting their attention to subscription-based on-demand services as a way to use the expensive new digital technology they've installed in systems during the past three years. However, the growing interest in subscription video-on-demand is sparking fears in some quarters that the new services could pre-empt the future development of more profitable VOD services based on the pay-per-view model.

The outcome of the battle could hold serious implications for both video retailers and studios. Since SVOD occupies a later window than VOD, its development could be less threatening to retailers. For the studios, however, SVOD could prove less...

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