Net video to become a staple for cable?

Video on demand is a growing business for cable companies, according to a new study that predicts that 15 million cable subscribers worldwide will be paying for the feature by 2007.

Video on demand (VOD) is a service offered by cable companies that lets subscribers order movies any time of day and control the video like a recording. Unlike pay-per-view services, subscribers can pause, rewind or fast-forward scenes from the movies and TV shows they order.

Although VOD is still in its infancy, cable companies could see incremental benefits as they begin to offer these services. Cable companies have been upgrading their systems to digital, which allows them to offer more channels and more features such as VOD. The companies have been pushing their subscribers to upgrade so they can sell new features that can be sold only on a digital network. []

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