Report: 11M VOD Subs by 2006

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Worldwide video-on-demand subscribers will grow from 3 million in 2003 to 11
million by 2006, according to a new research report by In-Stat/MDR, a sister
company to Multichannel News.

Part of the reason for the increase is a drop in equipment prices. In-Stat
found that streaming prices have dropped from $600 per household in late 2001 to
$475 per home today.

The survey also found that one-third of digital subscribers in the United
States become regular VOD users once it's available to them.

In-Stat expects most of the growth inside the United States. "Until
cable-based VOD services expand into Asia and Europe, we expect the total number
of VOD users to remain relatively modest," senior analyst Mike Paxton said in a
prepared statement.

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