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Video-on-demand to challenge rentals

Video-on-demand services are poised to outshine the current video-rental market, ultimately generating more than $9 billion in annual U.S. revenues by 2005, according to a new study by research firm Webnoize. The study found that movie storage and delivery costs have declined, making video-on-demand services more deployable nationwide. Such services let people watch films in their homes through digital set-top boxes provided by a cable subscriber, DSL provider or other entertainment network. Webnoize researcher Joel Karp said he expects video-on-demand's convenience to push it ahead of the current video-rental market--about $8.25 billion annually--since the service could end trips to the video store and late fees.

    Video-on-demand services are poised to outshine the current video-rental market, ultimately generating more than $9 billion in annual U.S. revenues by 2005, according to a new study by research firm Webnoize. The study found that movie storage and delivery costs have declined, making video-on-demand services more deployable nationwide.

    Such services let people watch films in their homes through digital set-top boxes provided by a cable subscriber, DSL provider or other entertainment network. Webnoize researcher Joel Karp said he expects video-on-demand's convenience to push it ahead of the current video-rental market--about $8.25 billion annually--since the service could end trips to the video store and late fees.