According to Safra Rashtchy, a senior media analyst with Piper Jaffray, it is the World Wide Web that shines the brightest for the future of home video.

In a recent article from Home Media Retailing, Rashtchy says that talk of video-on-demand conflicting with online movie-rentals is "exaggerated."

"We are the verge of a new era in the way people will consume electronic entertainment," said Rashtchy. "We will see a number of new initiatives. Some will gain momentum, some will totally go away and others will stay and become niche services."

The analyst further "questioned the proliferation of VOD by cable companies considering the percentage of households that have tried the service in relation to the number of VOD-enabled homes, about 25 million."

He went on to say, "What we do know is that over the next five to 10 years, we will get most of our entertainment delivered to us electronically... our guess is that most of that will come through the Internet in the form of purchases and rentals - not by VOD."

Lastly, Rashtchy said web-based services would be comprised of three parts: "The Netflix or Blockbuster Online rental model that delivers titles via the mail; a rental download option (about two years away) and a download-to-own service (five to seven years)."

Evan Jacobs at Movieweb
Evan Jacobs