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'The question is not whether on-demand is the wave of the future. The issue is how to best monetize the opportunity and understand the underlying economic models.'

LOS ANGELES, Dec. 12 /PRNewswire/ -- Amidst a din of news stories, announcements, and conferences proclaiming On-Demand the current "it" format of entertainment consumption, Nielsen Entertainment Reports releases today The Economics of On-Demand Programming, an original analysis of current and proposed financial models supporting all varieties of on-demand programming.

Through analysis of several recent on-demand deals and exclusive conversations with industry executives, pioneering programmers and select news analysis of early on-demand endeavors, Economics maps out the new value chain for both content owners and advertisers and provides econometric and comparative media models for the revenue and cost of movies, television shows, music and other content in the on-demand world of VOD, downloading and streaming. Included in the Report are analyses of:

  -- Transactional, Subscription and Free VOD Economics:
     > For example, how do the economics of server-based
       channels break down?

  -- Ad Supported Models and CPM Premiums:
     > For example, how do on-demand CPMs compare with traditional media
       CPMs, such as broadcast networks, spot TV, radio and magazines?

  -- Downloading and Streaming of Both Video and Music:
     > For example, from the content owner's perspective, how do the
       revenues from a video download compare to the advertising revenue for
       a prime time show?

  -- Movie Windows, from Theatrical to DVD to VOD:
     > For example, what do studios earn from domestic home video for each
       $1 million in domestic box office and how does the shortening of a
       DVD window impact this equation?

The Report also introduces new economic models based on a thorough quantitative exploration of on-demand variables, an original TV-VOD ad-supported model, including net annual revenues, and a glossary of terms.

"On-Demand means consumer-centric, and I can tell you unequivocally that there is not an advertiser, producer or distributor of creative content in the marketplace today who is not totally focused on the consumer, their experience and their preferences," said Andy Wing, President and CEO, Nielsen Entertainment. "The pace of change -- from channels to personalized entertainment networks -- has less to do with the penetration of new devices, and more to do with business' ability to plan and model. We're publishing our Economic analysis of the 'consumer as programmer' knowing explorations such as this can expedite the pace of this change."

The Economics of On-Demand Programming can be purchased through December 31 for $1,495.00 by emailing Reports@NielsenEntertainment.com or by calling 323/817-1958. Effective January 1, Economics will be available at the regular purchase price of $1,995.00.

Nielsen Entertainment

Through custom research, consulting and the world's most comprehensive network of entertainment measurement systems, Nielsen Entertainment delivers Actionable Entertainment Intelligence to clients engaged in the business of selling entertainment and trading in the marketplace of our popular culture.

Nielsen Entertainment's AEI products give clients unrivaled perspective from which to steer business decisions, providing the measure and the motivation in one package; comparing what the consumer says they do and what they actually do, in any given environment including film, television, music, books, and interactive media.

Nielsen Entertainment is comprised of the following businesses: National Research Group (NRG), EDI and EDI International, Television Services, SoundScan, Broadcast Data Systems (BDS), Music Control, VideoScan, Market Navigator, BookScan, BookData, and Interactive Entertainment, and utilizes the full portfolio of sister companies including Nielsen Media Research and Nielsen Net Ratings to deliver a whole media point of view. Nielsen Entertainment is part of VNU (http://www.vnu.com/), a global leader in information services for the media and entertainment industries.

CONTACT: Davina Harilela of Nielsen Entertainment, +1-323-817-1958, or davina.harilela@nielsenentertainment.com

Web site: http://www.nielsenmedia.com/ http://www.vnu.com/