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VOD Provider, Demand Video, Ceasing Operations

VIDEO ON DEMAND PROVIDER, DEMANDVIDEO, CEASING OPERATIONS Sunnyvale, CA (April 30, 2001)

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DemandVideo, a privately held company providing Video on Demand (VOD) services for the cable television industry, announced today that “adverse market conditions” had forced it to cease operations, effective immediately.

The company, founded in September 1998, was headquartered in Sunnyvale, CA. That office was responsible for its server and network technology solutions. The firm’s Santa Monica office was responsible for content acquisition, consumer and affiliate marketing, and digital arts.

DemandVideo’s comprehensive and cost-effective VOD services delivered a compelling, turn-key solution for its affiliates. Its early distribution emphasis was with broadband service providers (BSPs) since that market, with its 100% digital subscriber base, was able to deploy VOD immediately. BSP subscribers with the DemandVideo service could choose from a selection of on-demand programming, including recent Hollywood hits, classics, children’s titles, how-to programming, etc. Using the DemandVideo interface to rent a title, subscribers had real-time viewing privileges for 24 hours with complete VCR functionality: play, pause, rewind and fast-forward.

“We had enjoyed significant momentum since the Western Cable Show late last year,” said DemandVideo President and CEO Richard Hercules. “In recent months, we announced an important affiliate distribution deal with Denver-based WideOpenWest—on top of our installed base with Seren Innovations and Everest—and content deals with Court TV and the BBC. Several other important content and distribution agreements were about to be signed. Regrettably, adverse market conditions sorely impacted our and our affiliates ability to raise the capital necessary to continue.”

Besides Hercules, DemandVideo’s senior executives were Larry Coleman, Senior Vice President and General Manager, Content and Product Strategy; YP Chen, Senior Vice President, Engineering and Operations; Susan Marr, Vice President, Corporate Development; Cheryl Koll, Vice President, Affiliate and Consumer Marketing; Steve Schuh, Vice President, Sales; and Brian Stevenson, Vice President, Programming.

Author Ken Pyle, Managing Editor

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Comments

One response to “VOD Provider, Demand Video, Ceasing Operations”

  1. Ken Pyle, Managing Editor Avatar
    Ken Pyle, Managing Editor

    The above press release was from 2001, but I just published it tonight. Paul and I left in February 2001 to start Viodi, so I wasn’t there at the very end.

    I wanted to preserve a fragment of history that would otherwise be lost in the crush of new technologies and services. DemandVideo was one of three early VOD services (Diva being the original and Intertainer being another one started in the late 1990s).

    DemandVideo received a fraction of the investment of the others. Still we did launch and I think the total number of subscribers who had access to the service was around 10k by the time of its demise.

    VOD was especially challenging at that time, operations, technology cost, set-top integration were all factors, but probably the biggest challenge was access to content. Plus, there was the challenge of aggregating enough customers fast enough.

    It was fun working with a great team, an excellent learning experience and an opportunity that changed my life.

    Reply

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