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  DVDs take wind out of sails for video on demand
Time: 14:58 EST/19:58 GMT | News Source: Associated Press | Posted By: Alex Harris

Cable operators thought that this was the year they would begin taking on Blockbuster with their home video giant killer: video on demand. The service will be available in about 4 million homes by year's end, up from 900,000 last year -- and in nearly 38 million in 2006. Cable subscribers could call up movies on a whim, play and pause just like with a VCR and never pay late fees. Operators saw VOD winning much of the cash spent to rent tapes and DVDs, $8.4 billion last year.

But the year of VOD isn't turning out that way, to the chagrin of operators here this week for cable's annual convention. Far from predicting Blockbuster's demise, many say they'll be happy if VOD keeps subscribers from switching to satellite or gets them to spend $15 more a month for digital cable, needed for VOD. What changed things was the DVD.

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