Day and Date On Demand Movies Tested

Comcast's on-demand service is quite popular, mainly due to the wide array of free programming. But the cable provider now wants to turn it into a revenue driver, and is testing a service that would allow its customers to rent movies on demand on the same date it is released on DVD.

The films would cost $4, roughly the same price as renting it from the local video store. According to The New York Times, the service is currently offered in Pittsburgh and Denver. Normally, it takes as long as one to two months before movies make it to on demand services.

However, DVD sales have slowed, and on-demand is now widely available. The convergence of these two factors makes such a tie-up between cable providers like Comcast and the movie studios all the more profitable for both sides.

At least one studio, Warner, is providing its movies through the service. Comcast is declining to comment on the offering, although it has been advertised locally in both markets. Executives from Warner believe that there would be a market for the service, as Comcast has done well with its current offerings.

A study by research firm Claritas recently showed that 54 percent of digital cable subscribers use VOD, up 15 points from last year. Of those who use VOD, 53 percent watch movies through the service, up 13 points from 2005.