VOD steps up in Tampa

Cable World, Jan 8, 2001 by K.C. Neel

A mid talk that the roll out of interactive television has slowed, 130,000 digital customers in Tampa Bay, Fla., are getting video-on-demand services from Time Warner Cable.

Many operators see VOD as a good way of introducing customers to interactivity. It doesn't require a lot of expertise -- push a button, and a movie or event appears -- and it allows customers to have a lean-forward and lean-back experience -- that is, watching a movie passively -- at the same time.

Even before this month's expansion in Tampa Bay, Time Warner has been at the forefront of VOD deployment, having launched services in Hawaii in 1999 as well as Tampa Bay and Austin, Texas, last year. The MSO is using Concurrent Computer's MediaHawk Broadband VOD system in Tampa, which consists of 36 video servers in 34 hubs and two regional digital headends.

The systems can deliver 15,500 simultaneous MPEG2 video streams with storage capacity for about 160 100-minute movies, says Concurrent president/CEO Jack Bryant.

Time Warner plans to expand its VOD rollouts to other systems this year, says spokesman Mike Luftman, but he declined to say when or where the deployments will be. It's likely the company will use a mix of VOD equipment providers.

Time Warner has deployed Concurrent technology in its Tampa and Hawaii systems, and Seachange International equipment in its Austin property.

Time Warner is marketing the service as "IControl" offering recent releases for $3.95 each, classic titles for $1.95 and adult programming for $7.95. The prices are similar to what pay-per-view movies cost. Operators hope the ease of ordering coupled with an expanded content lineup will enthrall customers. PPV has never been able to live up to its hyped potential, but operators are confident PPV will provide a platform that consumers will embrace despite the necessary shift in business formula.

"We're a subscription-oriented business, and VOD is a transaction-oriented business," Mike Lajoie, VP-corporate development, told Cable World late last year. "It's been a challenge, but it's been something that has been working quite well."

Time Warner isn't tracking individual subscriber usage with its VOD rollouts. Rather, Lajoie says tracking usage by hub, neighborhood, title or studio is the way to go. Closely monitoring network load in the event of an unexpected burst in service popularity is also a concern for Time Warner VOD.

That's where Concurrent's technology comes in, Bryant says. The product is scaleable so operators can expand the service as demand increases.

"You need to be aware of that so you can add more streams so the consumer doesn't get a `video busy' signal," says Lajoie.

Time Warner has been a believer in VOD since its ill-fated full service network trial in Orlando, Fla., in the early 1990s. People liked being able to buy movies instantly, but the service proved too expensive to rollout commercially. Technology and the cost of equipment and content has come down to the point where VOD is finally a viable product.

Internet and TV: Competing Pursuits
for Home Entertainment?

A December 2000 tracking study about home entertainment
usage and purchasing patterns finds that the majority of U.S.
households are well equipped with TVs, CD players and PCs.
In addition, the research shows consumers are engaging in
similar pastimes as in 1998, such as watching TV, listening
to music, playing games on TV and the computer, and surfing
the Internet.

% of Total Respondents Who
Spend Leisure Time ...       2000   1999   1998

Watching TV Programs           98     98     96
Listening to Music             92     91     91
Reading                        91     91     91
Watching Videotapes/DVDs       89     80     88
Playing Video Games on TV      74     NA     NA
Surfing the Internet           58     38     35
Playing Computer Games         27     36     44

SOURCE: CTAM Pulse