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November 27, 2005

Video on demand becomes a divisive issue

Everyone agrees video on demand over the Internet should be a goldmine for telecoms and media firms, but the two converging industries have yet to figure out how both can make money, a conference in France has heard.

By CBR Staff Writer

According to Reuters, the delayed distribution of video on demand is accounted for by the lack of agreement reached between the media and telecoms industry on how they can fairly divide the revenue that can be drawn from the service.

Reuters reported that no agreement was reached between representatives from the two industries at a recent conference in France and although some small deals have been made between US TV and film rights owners and a number of European telecom operators, competition between the rival industries will make it difficult to profit from such agreements.

Jean-Bernard Levy, chief executive of French telecoms and media group Vivendi Universal, told Reuters, It is clear that there is a field in which telecoms operators and media companies are in competition and that is video on demand.

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