User content, mostly hot-talk, is what built AOL pre-internet, and its awesomely profitable, tic.

Om, losing their AD revenue is not the primary reason for what’s holding content guys back from VOD. They’re also waiting for the arrival of RBOC video network.

Content players want to play distribution channels against each other, or better yet they want to wait and own their own distribution, ala ESPN Mobile.

There’s not much difference between VOD and downloading from the Internet, so if that’s the choice for content, they’re much better off waiting for downloading services they control. Plus they can keep 100% of the revenue and get distribution for FREE.

So Brian Roberts, wouldn’t you do the same thing?

PS. A typical In-Demand payout split is 5% to InDemand, 35% for MSO, 60% to content.

Alex, I’ll take 100% over 60% any day.

To sum up the current showdown between content and distribution, the distro guys are killing themselves, and there is alot more distro power coming to market than killer content.

What would John Malone do?

could not agree with you more. they are trying to play the waiting game but given the track record of bell companies and their big bet on microsoft, i am worried that whole thing is not going to show up on time. by then the whole illegal thing is going to take off. anyway lots of food for thought here.