nd, security concerns are reduced as content delivery will take place within a private network, avoiding the int

Some analysts question whether VoD can be as profitable as broadcast TV. The dual costs of piping internet video into the home and licensing content from producers - both paid out on a per-view basis - "may call into question the level of profits that can be made in the long term" from VoD, says David Cockram of Oliver & Ohlbaum, a media consultancy. "More people are taking more of the pie."

Broadcasters already have to pay companies providing "content delivery networks" to ensure their on-demand programming reaches viewers in good quality and without loading-time delays mid-video. Every time a programme is viewed online through their VoD services, the BBC, ITV, Channel 4 and other broadcasters pay a CDN provider such as Akamai, Level 3 or, soon, BT.

Today, one half-hour programme costs between 2p and 5p to stream through a CDN every time it is viewed. That may not sound much, but with the BBC iPlayer serving up almost 60m TV shows in November, a broadcaster's CDN costs could already exceed £1m a month.