Orange’s Video-on-demand Launch Suspended
Source: solokay.blogspot.com
From all indications, the much anticipated video-on-demand service from Orange, a unit of France Telecom, is being delayed to enable the company put some logistics as regard the service in order. The commercial launch of Orange’s UK fixed-line broadband television service has been scheduled to be made available for use before the end of the year.
This service allows its users to watch video-on-demand content through their Orange Broadband connection on their home TV and for a start, the company has chosen to partner with MGM and Disney-ABC International as content partners with the promise that more company would be involved by early next year.
Although, there have been much speculations about the service from different analysts, some believe that company’s broadband network is not yet developed enough for a full roll-out and they doubt the potential profitability of internet protocol television.
Speaking on the need for Orange to wake up to the task, Ian Maude of Enders Analysis said that "”It’s important for them to protect the broadband base from other service providers particularly Sky [which has more than 1m broadband subscribers]"
He further stated that ”They are not going to make any money out of IPTV - we estimate for example that Virgin Media makes around £2 to £3 a month per video-on-demand subscriber.
”But Orange needs to offer it because everyone else is and to prevent broadband and telephony customers leaking to the competition." The Analyst concluded by saying that To offer the service Orange needs to install broadband equipment in BT’s exchanges. By September it had covered only 40pc of the population whereas rivals have coverage of around 60pc"
But the people at Orange believe that it is mere speculations and they strongly hope that the service would strive well in UK market, already the France launch of the service has been successful.
The Orange’s service is expected to be a hybrid of Freeview channels offered over the air and on-demand content down the phone line, similar to BT Vision.
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