| Video on Demand (VOD) systems are | | | | recording 100 hours of programming in digital |
| revolutionizing home television viewing for | | | | quality. It allows users to tape shows/movies |
| consumers. Such systems personalize the | | | | even while watching another pre-recorded |
| viewing experience by allowing users to | | | | show. Recorded content of course, can be |
| create their own schedule of their favorite | | | | copied onto videotape or DVD for archiving if |
| movies and programming, freeing them from | | | | desired. Other features include the ability |
| schedules created by networks and channels. | | | | to pause, rewind, and fast forward live TV |
| The most recent JD Power & Associates | | | | programming. The Dish Network DVR allows the |
| survey however, indicates that consumer use | | | | viewer to skip commercials by selecting a 30 |
| of VOD has not yet reached its current | | | | second "skip" option or to instantly replay |
| capacity, as only 21% of viewers indicated | | | | scenes by selecting a 10 second "skip back" |
| that they had ordered a VOD service in 2005. | | | | option. In addition, the DVR gives viewers an |
| Lack of awareness about the benefits and | | | | on screen program guide complete with program |
| availability of Video on Demand and perhaps | | | | descriptions, times, and titles. |
| consumer comfort with the concept are | | | | |
| possible factors in the limited use of this | | | | DVR equipment is approximately the size of a |
| technology. | | | | VHS recorder and prices average from |
| | | | $450-$750 although some cable and satellite |
| Video on Demand systems can be offered via | | | | companies offer the equipment at no |
| "streaming" or download to a digital video | | | | additional charge when initiating services. |
| recorder. Streaming takes up a tremendous | | | | The Dish Network service, for instance, |
| amount of bandwidth and is most often used by | | | | offers their DVR free with their programming |
| cable companies. Downloading to DVR is more | | | | packages and offer the DVR/VOD type service |
| commonly offered via satellite television. | | | | free with their America's Everything Package. |
| Both systems allow users to choose when to | | | | Other Dish Network packages offer the DVR |
| watch selected programming so that a racing | | | | VOD service for $5.98 per month. |
| fan in Illinois for instance, doesn't have to | | | | |
| get up at 4:00 a.m. to view a race being | | | | Clearly the necessary technology and |
| broadcast from Japan. | | | | equipment for video on demand is readily |
| | | | available in the US and the benefits for home |
| A digital video recorder (DVR) may also be | | | | viewers seem impressive, however, are all |
| referred to as personal video recorder (PVR). | | | | viewers ready for this service? Perhaps not |
| These devices encode video data in MPEG | | | | quite yet for some but that is expected to |
| format and store the data on hard drive. A | | | | change quickly. For younger consumers who |
| digital video recorder offers a number of | | | | grew up playing videogames and attaching |
| advantages to the consumer giving them | | | | mobile devices to their bodies, the concept |
| greater control over their television | | | | of pushing buttons and taking control over |
| viewing. First and foremost, it allows users | | | | their entertainment, their interactions, and |
| to record live TV shows to hard disk in | | | | so forth is an expectation not just an |
| digital format; no tapes required. | | | | option. As all Americans become more |
| | | | technologically savvy VOD services will begin |
| The DVR offered by Dish Network, for instance | | | | to realize their full potential. |
| has a 120 gigabyte hard drive capable of | | | | |