SeaChange Sees Drop in VOD Spending
Is the demand for video-on-demand (VOD) systems slipping? In a surprising move, SeaChange International reported a 39% drop in revenue and a sizable loss for its fiscal second quarter because of "slowed" VOD system spending by cable operators. For the three-month period that ended July 31, SeaChange recorded a net loss of $6.6 million on $26.2 million in revenue, as opposed to a $3.3 million profit on $43.0 million in revenue a year earlier. SeaChange President & CEO Bill Styslinger also blamed the revenue decline on telco VOD deployments that "are later than anticipated." But he said cable VOD spending should pick up again as MSOs step up their digital simulcast installations this fall. SeaChange serves such major MSOs as Comcast Corp. and Time Warner in the U.S. and NTL and Telewest in the U.K.