Video on demand

First I feel it necessary to define what I mean by Video on Demand (VoD). I mean in the broadest sense of on demand. Walking into your local DVD rental emporium is VoD. The time lag between making a decision and the fulfilment is a function of the operation and technology. So what isn’t VoD? Buying a DVD or taking a DVD out of your personal library isn’t VoD – something in-between. At the opposite end from VoD is broadcast where programmes are scheduled to play at a time determined by station that also decides what content to aggregate into its schedule.

So in my definition of VoD I would include the walled gardens of IPTV services like BT Vision even though they exhibit the broadcasters’ trait of decided what content to aggregate onto their platform. Internet TV services such as Joost and the BBC’s iPlayer are VoD as is a download or stream.

VoD is still an emerging service with early adopters still dominating the consumer base. This is unlikely to change for sometime for a number of factors.
These are 1. Uncertainty 2.Complexity and 3. Confusion caused by: -
• Proprietary technologies and applications that require multiple installations on your PC.
• Multiple set top boxes, sling box, IPTV box, Multimedia centres
• HDTV on the horizon which technology or device will give the best experience or will new boxes and technology require me to ditch my new but obsolete investment.
And others.
Even if these are all resolved and a “Blue-ray” standard emerges there is still a big benefit that broadcast has over VoD though few seem to recognise it or be developing it as a strategy. It is “Discovery”.

What is discovery? Well, most viewers know where there favourite TV Soaps are they switch channels to watch their Soap. How do they now? Well they look in the news paper, TV guide or know it’s always on. What about a new Soap? Here the marketing is done by the broadcast TV channel (or Network) Posters, newspaper but also trailers that are placed around other programmes.

Other channels don’t need to do this as much as their brand value broadly describes the content they aggregate for the viewers’ entertainment. Examples of my interpretations of these TV Brand are; Disney is a family channel, I could place an 8-year old in front of it in complete confidence that they would not hear a profanity. MTV once a music channel is now a 16 – 30 year old life style content. National Geographical, The Discovery Channel etc all have consumer understood values that set the viewing expectations.

BT Vision on the other hand and Joost may promote themselves and the extent of their content libraries but I have yet to see much more. This is because, to date, their content has previously been shown on TV or in Cinemas and therefore someone else has done the marketing and created the awareness. Users of these services are primarily looking for something they missed or want to see again. They may see something that they watch on speculation, but not the primary motivation.

Will VoD services see the day when there is content made primarily for VoD and secondly for broadcast? Will VoD commission exclusive content? Could they bid for 24, Lost or Heroes, so these programmes appeared exclusively or initially on their platforms? To succeed they will have to spend more and get smarter at marketing and enabling their target market to discover the delights, benefits and freedom of VoD.