Future Looks Bright for VOD

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Anaheim, Calif. -- Video-on-demand is a bright revenue stream that will
only get brighter with more studio product, greater rollout among MSOs and
increased awareness of the technology.

Those were conclusions drawn by panelists at the Cable & Telecommunications Association for Marketing's pre-Western Show luncheon
devoted to VOD Tuesday at the Anaheim Marriott.

Cable operators on the panel said
VOD will help the industry to drive digital penetration and curtail direct-broadcast
satellite churn.

'DBS has a pretty strong message and with consolidation, it will be more
powerful,' said Eileen Martin, area manager for Adelphia Communications Corp.'s
Cleveland system, where the MSO has introduced subscription VOD services. 'We
need critical mass to gain an advantage against the dish.'

'VOD services are seeing their day,' said Mike LaJoie, vice president of
corporate development at Time Warner Cable. 'The challenge is in aggregating
content and getting the message out to customers.'

Hollywood's lone representative
on the panel picked up on that theme

'We'd like to see more homes with access to VOD,' said Holly Leff-Pressman,
senior vice president, worldwide pay-per-view and VOD at Universal Studios, one
of two major studios that have VOD deals with cable.

'Consumer awareness is missing. We definitely need to come together to market
VOD.'

To that end, industry sources said the In Demand L.L.C.
MSOs are finalizing a new marketing theme, 'I control,' to define and market VOD
services on their systems. Said Steve Brenner, CEO of VOD distributor In Demand:
'For the first time in the industry, we have a competitive advantage over
DBS.'

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