Helpful discussion. When is something a tax, when an involuntary donation?
Video On Demand is a live streaming technology that allows for thousands of choices of programming at any given moment. This means being able to stream SD or HD signals just as if you were watching a linear channel. But instead of allocating one channel for each title (as PPV does), now you decide what is sent down the pipe on the one channel. That might be something from Howard Stern, NFL Network, Treehouse, National Geographic, Food, TMN, MPix, or dozens of others.
Cable delivers that model. Today.
Satellite is trying to find some variation on this and undermine the cable flavour by appropriating the name.
Satellite can "store-and-forward" by using a portion of a customer's hard drive and download, overnight, a fixed set of movies and shows which can be played back, "on demand", for a fee. The limitation is the size of the customer's PVR hard drive; and how much one wants to give up for the privilege. Who wants a PVR with only 10 or 15 HD hours remaining available for personal use? And the other 10 or 15 hours filled with 5 or 6 movies at $6-$8 per viewing?
Satellite can also "jump the shark" and deliver broadband downloads over DSL so that content is pre-loaded on the satellite PVR or, a buffer is created for a "live" streaming event. The point is ... that is NOT satellite any longer ... it's DSL. I wouldn't recommend you try that in HD. Nor would I care to pay the bandwidth bill.
Play semantics any way you wish: "On Demand" is actually what it sounds like. The ability to access thousands of titles, starting after a click or two, at any moment. Satellite TV simply cannot do this, even fudged with a 160 GB PVR. Or a 2 Terrabyte PVR, for that matter.
Cable delivers this user experience, today. Satellite cannot.