Subscription VoD Revenue Model Advances

While much telco and supplier attention has focused on free or pay-per-view video-on-demand (VoD) content for consumers, operators should keep a watchful eye to cableco progress with the subscription VOD revenue model for more focused content.

With SVOD, consumers pay an extra monthly charge for access to focused and accordingly packaged content such as Indian or Spanish language programming, sometimes spanning TV shows and movies.

SVOD represents a growing revenue opportunity for operators, who have made their money on free TV shows and movies as a lure to get viewers to rent new movies, which are increasingly available the same day they debut in stores on DVD.

The appeal and allure of VoD is growing, against a backdrop of a crippled economy, diminished consumer spending and the comparatively higher cost of buying DVDs or seeing first-run movies in theaters.

Add in a growing list of Web-provided movies from content owners and pureplay video portals and fatter Internet pipes from operators, it’s of little surprise that consumer viewing habits are evolving.

An SVOD case in point is cable giant, Cablevision Systems Corp. (CVC).

The company recently launched Bollywood Hits On Demand as the company's first international subscription video on demand (SVOD) service for iO TV digital cable customers.

Bollywood Hits On Demand gives cable customers unlimited access to a variety of South Asian films and music videos, and includes the ability to pause, fast-forward and rewind.

Bollywood Hits On Demand features more than 25 movies each month, including both classics and recent blockbusters, according to Cablevision. In addition, more than 50 Bollywood music videos are available each month.

In November, highlight films on Bollywood Hits On Demand will include the recent blockbuster Drona, direct from its U.S. theatrical release and C Kkompany, along with all-time favorites from Devdas to Mr. India.

“Cablevision is pleased to offer Bollywood Hits On Demand as its inaugural international subscription video on demand channel. It is a valuable enhancement to the broad array of programming we offer to our international customers,” said John Trierweiler, Cablevision's senior vice president of product management, in prepared comments.

More than 90 percent of Cablevision's 2.8 million cable customers are iO TV digital cable customers.

Bollywood Hits on Demand will be available for $9.95 per month to all Broadcast Basic customers and above who have a digital cable set-top box.

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