A Review of the Factors that will Impact the Market Success or Failure of Video-on-Demand.

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c7160) has announced the addition of How to Make Money with Video-on-Demand: Moving from Marginal Viability to Substantial Profitability to their offering.

"How to Make Money with Video-on-Demand" consists of a 77-page report and a fully-interactive VOD financial model that together provide an in-depth consumer analysis and the financial implications for VOD. In addition, the report offers marketing solutions for pricing, features, programming content, competition, early adopters, churn, and other issues. The financial model lets you manipulate dozens of variables to project the profitability of any cable system over a 10-year period. This study is suitable for cable operators, content providers, technology suppliers, and institutional investors.

How to Make Money with Video-on-Demand addresses the following topics:

--1) Overview of the VOD market

--2) Consumer awareness of VOD

--3) Consumer usage of VOD

--4) VOD as a threat to video stores

--5) Level of interest and price sensitivity for special interest VOD programming

--6) Premium network programming on-demand

--7) Price sensitivity for various VOD movie pricing models

--8) Revenue and profit projections for all types of VOD content

--9) Financial analysis of a cable system's VOD investment

--10) Important marketing considerations

How to Make Money with Video-on-Demand answers the following key questions:

--1) Which VOD price points generate the greatest revenues and profits?

--2) How much will customers pay for various types of special interest VOD programming?

--3) How much upside revenue potential can be realized through increased awareness?

--4) How can operators dramatically increase their VOD movie revenues with little risk?

--5) How have customer satisfaction and movie ordering frequency changed since VOD was introduced?

--6) What would customers pay for a movie with a simultaneous release vs. a delayed release window?

--7) How does consumer demand for premium SVOD compare to premium a la carte VOD?

--8) How do programming costs, capital costs, and operating costs affect VOD profitability?

--9) Which types of VOD content are essential to ensure a profitable investment?

--10) Which combination of promotional tactics is the most cost-effective for driving VOD usage?

The purpose of this study is to help cable operators decide if video-on-demand (VOD) makes financial sense for their own cable system, and to guide them toward making VOD a profitable investment. We believe that VOD, if implemented properly, will become a successful revenue generato that cable operators and content providers can each rely on to produce profits and satisfy customers.

This study identifies the factors that will determine the ultimate market success or failure of VOD, and it contains the knowledge to help operators make the right decisions for their unique situation. This report is divided into three parts. Part I contains our market and consumer analysis of the VOD market, derived from primary and secondary research. Part II consists of a detailed financial analysis of various VOD investment scenarios, which has been conducted by Ron Rizzuto, PhD (Professor of Finance, Daniels College of Business at the University of Denver). Part III offers marketing recommendations for cable operators, based on primary research and analysis by Bob Green (Principal, Bob Green Marketing).

Part I begins with an in-depth introduction to VOD that directly addresses and defines the roles of the primary providers - cable operators, content providers, and content aggregators. It outlines our methodology of consumer research and our survey findings, which were obtained from our analysis of 939 completed surveys of 40 questions each. Accounting for demographic factors, we evaluate the usage, level of interest, and price sensitivity of VOD for various types of programming, movie packages, and features.

Our consumer survey was designed through discussions with industry executives, requests from our clients and Registered Users, and from our own experience and previous research. The consumer analysis examines the economic viability of various VOD pricing and programming combinations based on their programming costs, not taking into account the operating costs of a real world cable system. We also include a high level of detail for each analysis (even those that are not feasible) to give you a full perspective of the underlying variables and factors that influence the potential viability of a given price or package.

Part II incorporates the viable pricing and programming options from our consumer analysis into a financial model that considers a typical cable system's revenues, capital expenditures, and operating costs. It uses a discounted cash flow analysis to determine the profitability of various VOD investment scenarios, such as movies-on-demand, premium SVOD, and special interest programming. Part III presents several important marketing recommendations that every cable operator should consider when investing in VOD. Building on our consumer and financial analyses, these recommendations recap the most profitable programming and pricing options, discuss additional features that could enhance VOD, and suggest the most cost-effective promotional tactics for driving VOD adoption.

Finally, we offer a fully interactive financial planning model in a spreadsheet format that allows you to conduct customized VOD financial analyses of any cable system. The interactive model contains dozens of variables, ranging from digital subscriber count and buy rates to marketing costs and peak utilization rate. You will see how manipulating these variables affects the free cash flow that a VOD investment could generate over time.

Topics Covered

--Introduction

--PART I Market and Consumer Analysis

--PART II Financial Analysis

--PART III Marketing Recommendations

For more information visit http://www.researchandmarkets.com/reports/c7160