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To: Black-Scholes who wrote (45126)9/21/1999 6:08:00 PM
From: John Rieman  Respond to of 50808
 
VOD to run on Pace boxes and Divicom headends.............

www2.digitalbroadcasting.com{534DF227-705B-11D3-9A64-00A0C9C83AFB}&Bucket=HomeLatestHeadlines

DIVA Scores Big VOD Win with UK?s NTL
9/21/99 NTL and DIVA UK Ltd. have signed an agreement to deploy DIVA?s video-on-demand (VOD) technology over its cable network in the UK by mid-2000.

The agreement is a big win for DIVA UK Ltd., a subsidiary of DIVA Systems Corp. (Redwood City, CA), which specializes in video-on-demand systems for cable. VOD has been characterized by fits and starts over the past decade, but increasing server capacity coupled with decreasing prices have brought more focus on the technology, which gives consumers access to a wide array of video choices and functionality. Forrester Research estimates VOD will generate $3.1 billion in revenues for cable operators by 2005.

NTL became the UK?s largest cable operator with the July announcement of its purchase of the consumer cable telephone and TV division of Cable and Wireless Communications (see Big Gets Bigger: NTL Buys UK?s Cable and Wireless Consumer Division). The acquisition gives NTL 2.8 million customers in the UK and Ireland. VOD deployment will be conditional on NTL?s progress in rolling out digital cable.

?NTL is soon to launch the UK?s most comprehensive digital service and intends VOD to become part of that service in 2000,? says Steven Wagner, managing director of NTL Media and Marketing Services. ?Recent reports of ADSL glosses over a major deficiency in picture quality when delivered at 2MB to reasonably sized TV screens. NTL?s cable will deliver true VOD at around 4 MB and is the only platform capable of achieving the quality our UK competitors can only dream about.?

VOD will be delivered to NTL digital cable set-top boxes over broadband without the need for hardware upgrades or special installation. DIVA?s VOD technology is deployed in six cable systems in the U.S.