Video on Demand is inherently an add on service of a TV service provider. As TV services started traversing over IP, the telecom and Internet service providers became TV service providers as well. So they also started offering VoD as a value added service over their IPTV platforms.

But as the broadband speeds are shooting up and the network is becoming more reliable world over, it is becoming possible to push high bandwidth consuming services like video with ease. With the existing broadband setup and now the super broadband networks being tried, video services over the public Internet is a reality with acceptable levels of QoS.

So which is the more yielding platform for the content providers and distributors? Is it still the TV? Well there seems to be paradigm shift. Some services over the public Internet have already become hot like Netflix and Comcast’s VoD over Internet. As per some industry figures, Netflix had 130 million views in January 2010. Similarly, Comcast’s On Demand service revenues were close to a billion dollars for 2009, and with the extension of service over the Internet, they are expecting a remarkable surge in it.

Seeing this growth and development in the market, the world’s largest retailer Wal-Mart also expressed its interest in the segment after acquisition of Vudu (online video streaming company).

Earlier trends in the industry also indicated that video is the next big happening over the Internet and now we are getting signs of On Demand video also getting its chunk. These signs clearly show that ISPs can scale their network not only in capacity but also in services and increase their ARPU coupled with reduction in fixed costs. Its a two way economy for ISPs.

Definitely trends like this is showing that ISPs are day-on-day becoming key influencers of the industry and what can really differentiate any communications service provider is to have the ability of offering and owning the IP network.

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