Mark Chertkow, MD of Graphic Image Technologies, explains how available technology awaits the necessary infrastructure for video-on-demand.
"For a while now there have been a lot of hyped predictions surrounding video-on-demand (VOD)," he says.
"According to industry observers and research groups, VOD is about to reach critical mass as a product. Strategy Analytics even predict that VOD revenues will reach a total of $287 million at the end of this year and jump to $3.5 billion in 2005."
VOD allows people to request and view content whenever they want, without having to record it first. The technology also offers the ability to stop, fast-forward and rewind. It is aimed largely at the consumer market as an eventual rival for video and DVD hiring services or the set schedules of TV movie channels.
"The concept is getting out to consumers that they can have this on-demand world," says Chertkow. "With VOD, there is convenience, choice and control. There is also no running to the video store to drop off rentals - and no late fees or rewinding involved."
A key missing ingredient, of course, is broadband access, which is far from ubiquitous in the local market.
"There`s a lot of hype, but there are serious challenges," says Chertkow. "Most homes do not have the guaranteed standard of broadband with acceptable service levels and quality standards haven`t yet been established for the industry, even in overseas markets. What`s the use of watching a movie if the quality is poor?
"Consequently, the stakes are rising for makers of video-on-demand servers and software systems, many of which came to market long before there really was sufficient consumer awareness or adequate infrastructure. The main reason was that VOD is seen as the ideal solution and companies have rushed to exploit the potential.
"However, problems with scalability - the number of streams supported - the bandwidth of delivery platforms and the costs involved have all caused delays in the mass uptake of the technology. The present business model may be flawed in itself. It will definitely take time for the technology and infrastructure to mature to the point where it becomes viable.
"The other alternative is to look at the model and make changes to reshape the requirements of the solution. An innovative approach may solve many of the existing problems and facilitate the eventual broad deployment of the technology.
Chertkow points out, however, that one market that is immediately ready for this technology is in the leisure industry.
"VOD technology has opened up growth opportunities for hotel in-room entertainment," he says. "It is a perfect product for major resorts and hotels that already possess the necessary infrastructure."
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Graphic Image Technologies is a media focused company operating in the digital video, advanced Web and multimedia environment.
The GIT Multimedia Bureau produces presentations, CD-ROMs and kiosks. In addition, it develops Web applications and provide database and e-commerce integration.
In the video arena, GIT is focused on offering a vast array of solutions, ranging from broadcasting video over satellite and ATM, to multicast applications for use in the corporate LAN and WAN and Internet streaming environments. For more information, go to www.git.co.za.
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