Big Media's "On-Demand" Entertainment: What's the Business Model?
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Code :BSM0033
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Region : USA
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Introduction:On-demand viewing on Comcast Corp's cable systems had exceeded one billion in the first 10 months of the year 2005. Apple computers sold one million downloads within 20 days of launching its on-demand service. At Time Warner Cable it was found that the average household watches 30 on-demand programmes a month. Craig Moffett (Moffett), analyst at Sanford Bernstein says, "Video on demand is starting to approach the magic number of once per day per household, this shows that on-demand viewing is becoming central to the way families consume media, and means that these families would find it hard to switch to services that do not offer it". With consumers' growing enthusiasm for on-demand entertainment, big media companies abandoning their age-old policies and choosing to provide popular shows via on-demand services and venture capital firms investing in media and technology companies, on-demand entertainment seems to be the future trend. But one thing was missing - the business model. Dennis Miller, a general partner of Spark Capital, a Cambridge (Mass.) venture-capital firm that invests in media and technology companies says, "Wherewe are now, there is nomodel thatmakes sense". |
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