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Report: Free Online Fare Spurs VOD, DVR Market

By Erik Gruenwedel | Posted: 03 Dec 2008

With the burgeoning availability of repurposed network TV content available free online, cable and satellite operators are increasing their investment in video-on-demand (VOD) and time shifting through digital video recorders to acquire and retain new customers, according to a new report.

New York-based ABI Research said carriers have begun incorporating software that allows consumers to “catch up TV” and “pause live TV,” in addition to network personal video recording devices.

“VOD and server-based time shifting are attractive services for consumers and give carriers a cost-effective weapon in combating the new offerings found outside of traditional pay-TV services, said Michael Wolf, director of research at ABI.

Wolf said increased availability of high-definition content has impacted storage capabilities and required carriers to expand server capacities.

“Those server vendors that design and develop products able to handle this expansion … are best positioned to garner this business,” he said.

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