Telekom eyes new VOD offering

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COLOGNE, Germany -- Deutsche Telekom is looking to capitalize on its position as Germany's leading Internet service provider with a move into online distribution.

Telekom said Wednesday it is interested in setting up a VOD service that will allow its high-speed Internet customers to download films and TV series directly to their home computers.

The telecom giant's entry into the download-to-own market could provide the tipping point for the distribution model in Germany. Telekom and its online division T-Online are far and away the territory's leading Internet provider.

The company hopes the download-to-own service will help drive pickup of its triple play (telephony, Internet and TV) offering T-Home. Launched earlier this year, the triple play service is currently available in 3.5 million German homes. In the first year of operation, Telekom aims to have several hundred thousand T-Home subscribers, each paying about €115 ($144) a month for the service.

Telekom said such interactive services as download-to-own will be added to T-Home in a second rollout, expected late next year.
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