Well, this fantasy could easily become a reality in the near future (in the US to start). Thanks to a recent deal that Blockbuster has just signed with broadband provider Enron, people everywhere could enjoy a video-on-demand service that delivers movies to your TV with a few quick clicks.
Blockbuster's chairman and CEO, John Antioco, is calling the agreement the ultimate in "bricks, clicks, and flicks." How will it work? Enron will stream feature-length movies to your home through a DSL line connected to your TV set. The DSL connection plugs directly into a set-top box that sits on top of your TV, and requires transfer speeds of at least 1.5Mbps. Blockbuster claims the service will be available in limited markets by the end of the year.
But while the two companies are very optimistic about the project, it would be wise to hang on to your video-rental card for the time being. "Based on the trends," says Jupiter Communications analyst Joe Laszlo, "it's going to be a while before video-on-demand works."
Laszlo thinks Blockbuster's announcement might be a bit premature since there are a few major obstacles that this type of video-on-demand service needs to overcome. For example, DSL is currently available only in limited markets. (Telstra this week announced DSL pricing for an Australia roll-out.) Secondly, most DSL services stream video at rates of approximately 300-600Kbps, not the 1.5Mbps needed for this sophisticated service. In fact, it will be some time before DSL providers make the technological leaps required to get the service running nationwide.
Plus, when the service rolls out, it's going to be more expensive than current video-rental options, says Laszlo. In addition to paying a AU$78 (via Telstra) monthly fee for DSL service, you'll have to pay for the set-top box, as well as rental fees to Blockbuster.
Even if this service is far from perfect, Blockbuster and Enron aren't the only ones with grand plans for the video-on-demand market. Cable companies are also exploring ways to offer personalized services for the home market. Laszlo predicts that in the short run, video-on-demand services will utilize cable web connections -- not DSL. But, it's still unclear how exactly these services will operate.
Until then, don't be surprised to see other companies forming partnerships to position themselves to take advantage of technology that's available today. Time Warner, for example, recently announced plans to offer ReplayTV to consumers in southern California as part of their cable service. So, while you won't be able to choose your movie off the shelves of Blockbuster, you can pause, replay, and record live television -- which is sure to come in handy during this year's Olympic games. And live TV is something you can't find at Blockbuster.
