Does a free service like DirecTV on-demand lead to generating revenues?
Pontual: The buy rate of cinema titles on the a la carte menu for our on-demand customers is higher than the buy rate of customers that consume these titles from linear channels. This increase to buy rates was anticipated, because the user has more opportunities to purchase the title and have better navigation experience. Via Satellie: How is DirecTV’s on-demand technology different, if at all, from the other providers? Pontual: Everyone one of our customers who has an HD PVR is able to access these services. When compared to cable providers, the major difference is that DirecTV has large storage in the homes and a large broadcast pipe that reaches all 50 states. Broadcast is the most efficient way to deliver content to multiple consumers. A smart product that can benefit from the broadcast pipe and local storage creates significant value. DirecTV’s Video On Demand is a hybrid system that benefits from broadcast and Internet delivery. The push system is like a predictor of what the cus
