DirecTV, the nations largest satellite TV provider will begin to offer video on-demand (VOD). According to a report in the Wall Street Journal, DirecTV has begun testing the VOD service and will begin a wider roll-out to subscribers in the next couple of months.
DirecTV’s satellites will automatically transmit a limited number of popular movie titles to customers’ digital video recorders, where they will be stored for viewers to order whenever they want. Viewers will be able to order other titles, including TV programs, by streaming them from the Web through a high-speed Internet connection on the DirecTV set-top box. DirecTV says that about half of its customers currently have high-speed Internet connections.
DirecTV has been late to the VOD game, as cable and rival satellite provider Dish already have a video on-demand service up and running since last fall. One aspect to the story that is intriguing is the mention of how DirecTV plans to use the data it gets from subscribers to sell ads.
More than just offering video on demand, this arrangement will let DirecTV tap what some analysts think could be a big growth area for TV providers — selling highly targeted ads.
With a set-top box connected to the Web, DirecTV will be able to track what programs people order through real-time data about a user’s television viewing behavior and allow the company to target ads. Cable operators already have similar plans, using the interactive capability of their set-top boxes.
With the launch of Hulu, and the recent update to Apple TV, 2008 is shaping up to be all about getting content to viewers in as many ways as possible.
[via WSJ]
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