Early Development
Developing VOD required extensive negotiations to identify a financial model that would serve both content creators and cable providers while providing desirable content for viewers. Key factors identified for determining the economic viability of the VOD model included VOD movie buy rates, Hollywood and cable operator revenue splits.
Cable providers offered VOD as part of digital subscription packages, which by 2005, primarily allowed cable subscribers to only access an on-demand version of content that was already provided in linear distribution. Included in these packages were "extras" and "bonus footage" rather than full episodes of television shows.
Read more about this topic: Television On Demand
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