Thursday, September 15, 2005

Blockbuster probing online video-on-demand

Via the Miami Herald:
Blockbuster demonstrated an online video service at a trade show in Europe last week and has completed a test involving 5,000 British households, but officials downplay talk of service in the very near future.
Netflix will be testing video-on-demand using set-top boxes this year.
Netflix's test of video-on-demand this year will be "very modest," said spokesman Steve Swasey.

"It will be limited mostly by content for the reason that the studios are not licensing that many titles for electronic delivery," Swasey said.

Studios typically earn only $1 or $2 from each movie rental but can make $12 or more from each DVD sale, giving them a short-term incentive against supplying recent movies to video-on-demand services.
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