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Almost every home has a television today. It offers programmes from a number of available channels and is very simple to use. The Cable TV (CATV) makes it possible to choose programmes from large number of channels. Then became video rental business in combination with a video recorder, which provides customers to select movies when they will. This service may be called video on demand.

Nowadays Video-on-Demand (VoD) includes much wider services and opportunities. Today s technology allows telecommunication network operators to offer such services as home shopping, games, and movies on demand. These services should have a competitive pri ce comparing to the video rental, and customers do not need to travel for the services. These possibilit ies have been reached by the development of the telecommunication and electronic industry. The capacity of a hard disk has doubled almost every year at near-constant cost. The useful compression ratio for video has been increased considerably, MPEG-format ted video can be transported at a bit rate of few Mbit/s. The digital signal processing techniques permit the transport of a few Mbit/s over existing copper wires for a distance of a few kilometres. Finally, Asynchronous Transfer Mode (ATM) systems allow the switching of any reasonable bit rate to a single or multiple customers among a large number of connected customers. However, today s transmission bandwidth is large only downstream towards the customer with narrow upstream bandwidth. But upstream bandwidth will also become wider in the future, then interactivity between the customer and the service provider will increase.

This new technology is being developed all the time, because Video-on-Demand has so many different applications to offer to the custo mers and economical possibilities have been seen. Many companies, organisations and universities are developing products and standards. Both cable TV and telephone operators invest to their networks and have some trials in Video-on-Demand. To finance the required investments, higher consumer volumes must be reached from residential side instead of business side that is running ahead in the development of technology. The battle is hard, and it is getting harder all the time. So some companies have establis hed business relationships to get their knowledge and resources together. In addition, they may avoid some regulation restrictions before telecommunication markets are opened to everyone.




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