Friday, July 14, 2006

Free Video-On-Demand system

Free Video-On-Demand system supported by advertisements

Introduction

The purpose of this document is to describe a free VOD system supported by advertisements. This system will bring great benefits to different parts such as: end user consumers, content providers and advertisement agencies.

Today there are many discussions (even implementations) around the VOD advantages but all presents the issue as a service that allows consumers to rent videos at a certain price. There are no plans for a free VOD system.

Description

The main ideas of the Free VOD system described in this post are:

- a Free VOD system offered by Internet Service Providers to their customers at no additional charge;
- Viewers will have access to a database of thousands of categorized movies, documentaries and shows from where they can pick whatever they choose. No more annoying interruptions that the show is not free and costs, etc. The entire database is categorized and has graphics and reviews for each item.
- When a video is chosen the play begin instantly, the end consumer having the ability to pause, rewind or fast forward the show;
- From time to time the show is interrupted by intelligent target commercials, exactly like those from a usual television channel;
- Each viewer will have a personal profile into the system so the commercials will be precisely targeted according to each person interests, location or monthly income;
- To be future proof the system should take advantage of IPTV technology and probably make use of Microsoft’s TV platform on client side;
- Although the viewers will be able to use the Free VOD system, the recommended solution will be a standalone unit (like a standard A/V box) that connects to local Ethernet (or maybe directly to phone line or TV cable) and to a TV set. Different variants of this device may be produced: dedicated used only with the Free VOD system, other hybrid devices (a Free VOD receiver with a DVR functionality) most useful to existing TV providers that distribute also live TV besides the Free VOD system;
- Optionally, the system may work also as a classic VOD system. When viewers pick a movie they’ll be asked if they want to pay for it to see it free of commercials or if they want to see it for free;
- In order to work the Free VOD system should offer content from big movie industry companies: Sony Music and Film, Warner Bros, Imax, etc.

Justification

- Nowadays technology is advanced enough to allow implementation of this system. Because the service will be offered directly by ISP providers the bandwidth and connection quality will support the service without any problems (a standard resolution video transmission encoded in MPEG4 requires only 1.5MBits / second bandwidth);
- consumers are educated to see commercials during TV shows so advertisement presents will be seen as normal;
- The Free VOD system will be used like the Web Sites are used today – although commercials are annoying the Internet users prefer free sites (with advertisements) rather than sites that charge for information;
- TV consumers are used with the model where they pay a monthly payment and receive content without being forced to pay each time they pick something to watch;
- Advertisers can target very precisely their commercials and more than that because the service is digital (over internet) the viewers can order products as they watch the TV (either they are watching from a computer or from a internet enabled device connected to their TV set);
- ISPs can offer the service free of charge to their clients;
- The system can collect different information about viewers and make automatically statistics. In this way the price of commercials may be adjusted based on customers requests (most wanted shows or the new ones may cost more);
- This system will change forever the way video distribution works – I estimate to have the same impact that iPod devices produced and probably will take out of business established companies such as BlockBuster or NetFlix;
- The system may be offered free of charge to ISP providers (such as Bellsouth, Comcast, EarthLink, etc);
- Will bring a lot of fame!

Benefits at a glance

Consumers: Free movies and shows available on demand.
Advertisers: The ability to target customers precisely, Obtain detailed information about viewing habits.
ISPs: New services offered to existing customers, Diversification of services.
Content providers: Money from advertisements will pay viewed movies, Increase movie sales.
System producer: Money from commercials and (optional) money from ISPs that will use the service.

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