Nels has decided to test the DirecTV video on demand downloading system. The system allows free video on demand access to various content including the 1981 Ivan Reitman film Stripes. Access to the DirecTV video on demand system requires an active internet connection. Access to the content is completely separate from the satellite system. Given the bandwidth considerations, the internet connect has to be separate form the DirecTV satellite dish system. Over a standard DSL internet connection, the movie Stripes took about three hours to download using the video on demand system.
This type of system does not provide instant access to on demand streaming video. At some point in the future, a significant increase in bandwidth available to the system will create the possibility of true on demand video streaming. True streaming internet video will fundamentally alter the current business model implemented by broadcast television stations. At some point in the future, people will have the option to select content based on individual preferences. Individual preferences will always trump a broadcast schedule. Entertainment content providers are about to face a deconstruction of traditional business models.
Overall, the DirecTV video on demand system shows true potential for future development. Requiring a combination of internet bandwidth and satellite dish contracts will limit the total number of potential participants. Internet access will eventually be nearly universal. Satellite access will probably never be universal. However, given the nature of the video on demand system having satellite access is not actually required.
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