Video on Demand (VOD) is still in its infancy as a mainstream means of watching premium films in our living rooms. Downloads to computers have gained prominence for some time, especially the with the rise of YouTube, but people want to watch actual, feature length movies from the comfort of their sofas, not their computer chairs. Cisco estimated that internet traffic carrying video to TV sets will rise tenfold from 2007 to 2011, and ABI research estimates that VOD will be a $1.5 billion industry by 2012.

There will probably be three main types of VOD--subscription services with all you can watch like Netflix's current plan, pay-per-view services like iTunes and cable movies on demand, and finally lots of free streamed content with advertising. This will likely be the future of TV; why watch something on someone else's schedule?

The current surge in VOD was presaged by several factors. In 2006, DVD sales began to stagnate; the Hollywood studios had released practically all their back catalogs, iTunes was rising, showing the digital future, and the studios were worries that Apple would soon dominate video like they dominated music. So the studios--so long skittish of licensing their content online for fear of piracy, became more liberal in inking content deals with VOD companies.

There are already several key contenders, with Apple trying to duplicate its iTunes music success in video with Apple iTunes, Netflix trying to broaden from DVDs via a download service, and other lesser known services like the top end quality Vudu set-top box, the two initial rivals in the field, CinemaNow and Movielink, cable on demand packages, and even plans from phone companies like AT&T's Homezone.

Actually, despite their trepidation and slow progress thus far, the studios very much want to the VOD model to work. VOD sales carry profit margins of 60 to 70 percent. DVD sales compare at only 20 to 30 percent. So the industry will eventually favor VOD. One day not too far off, movies will come out across various dissemination means at the same time, to take advantage of cinema release publicity.

And the time for VOD is not just apt from the studio point of view--a 2008 survey showed that in these eco-conscious days, 94% of Americans believe movie downloads are more friendly to the environment than using physical DVDs.

We're at a critical juncture in the VOD industry's development, with many rival services coming forward to compete for market share. We at Video-on-Demand-Guide.com will guide the way with our reviews and rankings, helping you pick the best.