Video on Demand (VOD) systems are revolutionizing home television viewing for consumers. Such systems personalize the viewing experience by allowing users to create their own schedule of their favorite movies and programming, freeing them from schedules created by networks and channels.

The most recent JD Power & Associates survey however, indicates that consumer use of VOD has not yet reached its current capacity, as only 21% of viewers indicated that they had ordered a VOD service in 2005. Lack of awareness about the benefits and availability of Video on Demand and perhaps consumer comfort with the concept are possible factors in the limited use of this technology.

Video on Demand systems can be offered via streaming or download to a digital video recorder. Streaming takes up a tremendous amount of bandwidth and is most often used by cable companies. Downloading to DVR is more commonly offered via satellite television. Both systems allow users to choose when to watch selected programming so that a racing fan in Illinois for instance, doesnt have to get up at 4:00 a.m. to view a race being broadcast from Japan.

A digital video recorder (DVR) may also be referred to as personal video recorder (PVR). These devices encode video data in MPEG format and store the data on hard drive. A digital video recorder offers a number of advantages to the consumer giving them greater control over their television viewing. First and foremost, it allows users to record live TV shows to hard disk in digital format; no tapes required. The DVR offered by Dish Network, for instance has a 120 gigabyte hard drive capable of recording 100 hours of programming in digital quality. It allows users to tape shows/movies even while watching another pre-recorded show. Recorded content of course, can be copied onto videotape or DVD for archiving if desired.