TVN Shifts Focus to VOD

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TVN Entertainment Corp. will discard all but one of its 20 linear pay-per-view channels early next year in an effort to focus more resources on its video-on-demand business.

As operators seek to regain valuable bandwidth -- and with TVN’s PPV channels generating just 10% of the company’s transactional business -- executives said the move is an acknowledgement of the realities of the burgeoning VOD marketplace.

“We are very excited about VOD and are seeing exciting numbers in the industry in terms of the growth of VOD-enabled homes and buy-rates,” TVN chief operating officer Doug Sylvester said.

“There’s really starting to be great consumer acceptance of VOD, so we’re positioning our company for the future of the transactional business, which, we believe, is VOD,” he added.

Beginning next month, TVN will start eliminating 19 PPV channels -- 10 movies, three adult slots and six themed channels. By April, all that will remain is one generic PPV channel featuring live events and movies, according to Sylvester.

“The overwhelming majority of our affiliates have been pushing for this transition and have been driving their business toward VOD,” Sylvester added. “In some cases, there are some affiliates that would like to continue to offer PPV channels next year, and in those cases, we’ll support their transition.”

For more on TVN, please see R. Thomas Umstead’s story on page 3 of Monday’s issue of Multichannel News.