VOD in the form of catch-up has been the growth curve of recent years. But the uphill struggle to make it pay was confirmed by speakers at Westminster Media Forum.
David Cockram of Oliver & Ohlbaum said research showed UK public broadcasters will make only a combined £46 million (E53.3m) with a gross margin of less than 50 per cent.
Virgin’s commercial and strategy director Asanga Gunatillaka said they thought ads on catch VOD had much potential but they didn’t want to alienate viewers so were taking a softly, softly approach to trials.
Blinkbox CEO Michael Comish said it was clear the mix would have to be ads and subscription and PPV; he said only the BBC and YouTube had the kind of scale to make advertising metrics work.