In Demand’s Planning Events

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Seeking to boost the pay-per-view event category, In Demand will convert its
two highest-penetrated PPV channels to 24-hour event-only outlets beginning
Sept. 1.

In Demand's channels 1 and 2 -- which currently feature about 90% movie
product and 10% events -- will only offer sports, concert and special
programming events from outside distributors and In Demand-produced shows,
senior vice president of programming and development Dan York said.

The two channels are In Demand’s best-distributed outlets, reaching 27
million households.

Despite wider distribution of PPV technology over the past three years,
PPV-event revenue has failed to approach the record $486 million generated in
1999. Last year, PPV events generated $363 million, 90% from boxing and
wrestling events.

Yet York said that on In Demand 1 and 2, PPV events, despite only
representing 10% of the content output, rake in more than 90% of all
revenue.

Operators are accelerating video-on-demand rollouts and offering more movie
titles via VOD file servers, so In Demand doesn't need a full complement of 30
digital channel-based movie channels anymore.

York said In Demand 1 would premiere most of the major PPV events each month,
including marquee boxing and wrestling events. In Demand 2 will be oriented
toward all-day viewing of PPV events.

"We’ll also look to find targeted days of the week for different programs"
for In Demand 2, York added.

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