Friday, January 09, 2009

VOD Service On The WII Scares TV Channels

Nintendo is about to launch a video on Demand service on its Wii. A new VOD platform will born allowing Wii's users to access some different movies and video contents, which will be free or not, depending on if the user is willing to have commercials or not.

Some TV channels are still wondering about the potential of such a bid. Indeed, Nintendo, which sold 35 million Wiis around the world, has been able to collect important information via the Wii vote system, where users can vote for their preferences in term of entertainement. Also, through such a system, Nintendo would be able to provide to advertisers a great way to target customers thanks to their preferences. Also, 40% of Wiis are connected to the Internet, which enable the video on demand access.

Therefore video games hardwares are a great threat for traditional TV channels, because they have more skills to target customers. Also, we can see that video games companies have made great effort in order to diversify their business models, via advertisement, in video games, but also now with new media services.