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Consumers Call VOD Option of Last Resort

MediaPost reports that for all the hype surrounding video-on-demand TV services, usage remains low, it's getting few new subscribers, and people who do sign up tend to view it as a "last resort for television." Those are the main conclusions of "Video on Demand: Attitudes and Opportunities," a new report from consumer researcher E-Poll. What's wrong? and what has to change for VOD to succeed?

Above all, consumers say VOD should be offered free, which may be good news for advertisers, indicating that advertising may be a more viable alternative to pay-per-view and subscription-baed pricing models.

"There are a couple forces that are driving advertising for VOD," advises Gerry Philpott, E-Poll's president and CEO. "For cable to be competitive [other TV service providers] they'll have to offer a fair amount of free programming on demand." Consumers appears to be even more amenable to receiving targeted advertising as part of free VOD deals.

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