Will video on demand be the end of TiVo?

Two networks embraced the technology last week.
By TOM JICHA
SOUTH FLORIDA SUN-SENTINEL
The executives who devise network TV schedules are going the way of blacksmiths. The newest wrinkle in the business -- video on demand -- allows every viewer to be a programmer.
Can't "Curb Your Enthusiasm" for Larry David's HBO comedy? With just a click on the remote, you can watch it at 10 a.m., 11:40 p.m., anytime really -- provided you subscribe to HBO. One episode not enough? Watch the whole season to date.
Kids screaming for "Sesame Street" or "Teletubbies" but the airtimes have come and gone? No problem. Just click them on.
Perhaps you're a movie buff. Hundreds of flicks, recent and vintage, are at your beck and call, no extra subscription necessary. There's also a feature that allows the previous week's NFL games to be seen without the tedious breaks between plays. Everything that matters can be seen in about 15 minutes.
When video on demand (VOD) was launched in June, it was the exclusive province of cable TV. Comcast and Adelphia have extensive VOD menus and their smaller rivals either have it or are in the process of getting it.
Big step forward
However, the innovation took a monumental step forward last week, when broadcast networks CBS and NBC dipped their toes into the water.
CBS opted to make four of its most popular series -- "CSI: Crime Scene Investigation," "NCIS," "Survivor" and "The Amazing Race" -- available to Comcast subscribers, and NBC struck a similar deal with satellite programming provider DirecTV for almost-instant replays of NBC series "Law & amp; Order: Criminal Intent," "L & amp;O: Special Victims Unit," "Surface" and "The Office," as well as "Monk" and "Battlestar Galactica" from NBC-owned cable networks.
The limited rollouts, which take effect in January, are serving as guinea pigs. If they prove popular, expect similar deals with other cable or satellite providers and an expanded menu of shows, plus participation by other broadcast networks.
VOD is the next step forward in time shifting from videocassette and digital recorders such as TiVo. With the exception of NBC's DirecTV arrangement, which requires a TiVo-like player, the beauty of VOD is that no additional equipment is necessary. A cable customer merely has to be a subscriber to the digital tier, which costs about $10 per month on top of all the other charges and fees cable companies squeeze from customers. The hope is video on demand will drive additional digital subscriptions.
HBO, Showtime and other premium channels see the lure of VOD as a way to make their services more valuable to consumers. Basic cable networks, such as A & amp;E, Lifetime, History Channel and Discovery Channel, use it as a promotional vehicle.
Not free
The broadcast network deals are an important advance in removing the gaping hole in VOD -- the absence of TV's most popular shows. However, they aren't as customer friendly. CBS and NBC are charging 99 cents per show. The CBS programs will contain the commercials. The NBC replays will not.
Unlike the cable channels' VOD, which make entire seasons available, the CBS dramas ("CSI" and "NCIS") can be viewed only until the next episode airs on the network. The network's reality shows ("Amazing Race" and "Survivor") will be available until the next edition of those series begins. NBC will make the programs it controls available for only 24 hours after their initial airplay. CBS will make no effort to prevent recording; NBC's technology will inhibit it.
Disney took the first step in this direction last month when it announced it is making "Desperate Housewives," "Lost" and some other popular programs from the company owned ABC network available for replay on iPods at $1.99 apiece.
All of this is subject to expansion and change as the business evolves, and the networks get a better feel for the preferences of the audience. They'll also look at the impact VOD has on its core business: advertiser-supported, over-the-air TV.