The take-up of video-on-demand and other digital contentdelivery services could be slowed because of the ongoing strength of DVD profitmargins, delegates at Screen International's DVD: The Home Cinema Summiton Thursday (July 8) were told.
On some European services, a movie via video on demand cancost as low as Euros 3 - far less than the high profit margins on premiumpriced DVDs.
"Studios are cautious about VoD - they are not going tocannibalise the DVD cash cow," said Guy Bisson, analyst at Screen Digest,said.
"Clearly the retail sales model is head and shouldersabove everything else," said Screen Digest's Helen Davis. "Theconsumers are paying a premium price."
Delegates heard how video on demand could be revolutionisedby the roll-out of broadband, which is moving at an exceptionally fast rate.
This year, broadband take-up in the UK and Europe willlikely overtake the number of homes with digital TV.
Panellists, who included Mark Windy, head of technology andnew media and the European Film Companies Alliance, highlighted the value ofarchive titles to video on demand businesses and discussed the pros and cons ofnew technologies such as disposable DVDs and digital delivery.
"However good digital rights management is, you willalways be able to break the code," said Saul Klein, CEO of DVD onlinerental service Video Island.