INS READY TO FLIP SWITCH ON VIDEO SERVICE

Iowa Network Services last week said it would use Kasenna software and video servers to provide video-on-demand service to its 146 member companies in a move that may prove to be a turning point for small telcos entering the video business.

The deal, which includes Kasenna's MediaBase MP software and GigaBase video servers, is significant in part because it removes an impediment to a large number of telcos in independent-rich Iowa deploying video — the costs of licensing movies. As part of the service, INS will keep a Kasenna server as a central library in Des Moines and act as the master licensing agent. The company will transmit content to edge servers of member companies over its existing OC-3 ring.

“Many of the companies are extremely small and probably couldn't afford the licenses on their own,” said Howard Juul, vice president of network planning at INS. New releases and things that will get a lot of play will be pushed out to the edge servers. We can do that on a scheduled basis. Some companies may choose to replicate everything.”

About a half dozen telco members are currently deploying those edge servers, and INS plans to launch the service on April 15 with more expected to sign up in 2005.

From a user perspective, VOD provides the benefits of pay-per-view but with full VCR controls. Users that order movies will have access to that stream for 24 hours.