There’s complex maths involved: the cost benefit analysis for mid to smaller sized telocs and cable providers. On paper it’s a great idea, but in reality, it’s a tough sell. In the short-term, the steady march of improvements to MPEG video transmission systems and the massive legacy set-top base means there just isn’t a compelling need for MSOs to buy into an IP video conversion.
But it could work for PC-basedVOD services fueled by high-speed cable modems. Already, providers including Akimbo and the Starz Encore-RealNetworks offering (Starz! Ticket on Real Network) are delivering Internet-based VOD services, and cable operators may well choose to add their own services rather than see that revenue stream flow elsewhere.
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