Viewers get their regular channels from satellite, but the return path is a DSL link that also serves as the downlink for VOD services offered by BSkyB.
Hybrid STBs (HSTBs) can also be used to combine IP video with DTT or even cable TV, but ABI Research says that satellite/IP HSTBs will comprise 20% of the market this year, but by 2011 will account for the majority of the HSTB market.
That's promising news in the sense that it allows DBS/DTH players to compete more effectively against cable operators that haven't yet digitized their networks, and IPTV players who are already looking at interactive services and VOD. In theory.
In practice, however, it's not likely to be so easy. For a start, you'll need access to that DSL line, which may mean partnering with a telco, depending on the state of lop unbundling in your service area. Second, full interactivity on the same level as what IPTV operators are planning to offer in the next couple of years remains a tall order for satellite, according to Thomas Choi of Asia Satellite Broadcasting, who said at the Digital Entertainment summit in Hong Kong last month that fully-interactive services like e-commerce and shopping are five to ten years away.
The main unknown, though, is the viability of VOD in the first place. It's been touted as the Holy Grail of TV services since the early 90s, but after dozens and dozens of trials worldwide, no one has ever launched a successful VOD service. That's not to say it can't be done, but as an executive of Widevine told me at IPTV World Forum Asia last week, "Everyone's learned over the years that there are so many elements that you have to get right - the interface, the billing systems, cooperation from studios, conditional access, DRM, and so on. You can't just slap a bunch of videos on a server and put up a list."