DirectTV has just announced that it will offer its video-on-demand service
through satellite and broadband Internet.

Subscribers of the direct-broadcast satellite service would be able to
access the programs of their choice at the time that they want. It is almost
similar with other video-on-demand services that use cable, except for one
thing: it cannot receive program commands from the subscriber.

The satellite-relayed service works by sending a predetermined number of
videos into high-definition set-top boxes. However, the number of programs
that the subscriber could choose and watch is limited by the storage
capacity of the hard drive.

In order to remove this limitation, DirectTV will be offering the service
through the Internet. This service, called “Direct Flix,” would allow the
subscriber to access all available videos that are offered by the company.
There’s no need to subscribe to a special Internet connection. Customers
could use their existing dial-up, cable, or DSL connection.

One-third of DirectTV’s 15 million subscribers presently have access to the
Internet. The new set-top boxes that would be released later in the year
would connect the TV set to the Internet. The company is expected to deploy
300,000 units by the end of the year.

Users could log in at DirectTV’s website, www.directv.com, to access the
titles of their choice. Program selection could also be made through mobile
phones. The satellite service would be available as early as April, while
the Internet-relayed programs would be offered on the last quarter of the
year.