Video-on-demand might never be a huge revenue generator, but it can still serve as an important service "differentiator" in terms of comparing digital-cable services with direct-broadcast satellite, according to In-Stat/MDR (a sister company to Multichannel News).
“Even as the number of VOD users is on the rise, consumer interest in VOD service remains lukewarm due to concerns about pricing and a continued lack of compelling content,” the research firm said in a prepared statement.
A recent survey by the company showed that while 80% of respondents were familiar with VOD, only 8% were regular users of the service.
More operators are now considering launching VOD, though, as the current cost per stream has fallen to approximately $300, In-Stat added.
The research firm predicted that total worldwide cable VOD subscribers would reach 17 million by 2008.