VOD, you sexy thing

By Susan Rush
from CED Broadband Direct, June 11, 2002

Content aggregator TVN Entertainment is continuing its charge in the VOD market. The latest: TVN has snagged a contract with The Erotic Networks.

Although financial terms were not disclosed, TVN will handle all of the adult channel's VOD needs linked to programming, transport and asset management via TVN components such as its proprietary ADONISS platform.

The deal is designed to expand The Erotic Networks' U.S. VOD distribution base beyond its current 1.2 million homes. As part of the deal, TVN will package the adult content channel with its "mainstream content" packages to its MSO partners. The Erotic Networks is a pay TV subsidiary of New Frontier Media.

Right now, adult entertainment reigns king in the VOD world. At the end of 2002, the VOD market is expected to generate $460 million in revenue, with the majority of that revenue being generated by the adult content sector, according to recent findings from In-Stat/MDR. "We firmly believe that The Erotic Networks' VOD offering will be among the most lucrative as the rollout of VOD accelerates in the months ahead," says Jim Riley, TVN's senior vice president of business development.

Last month, TVN inked a deal with Quicksilver to bring video-on-demand and subscription VOD to action sports enthusiasts, through a sports channel, dubbed UNION* The Boardriding Channel. Films from Volcom, Globe, 900 Films, Opper Sports, Bluefield Entertainment and EX TV/The Extreme Group will populate the channel.

TVN also inked a five-year deal with Insight Communications to fill the video-on-demand content and transportation void left behind by its bankrupt incumbent provider, Diva Systems.