WO2001052542A1

WO2001052542A1 - System and method for dynamically pricing pay-programming

Info

Publication number: WO2001052542A1
Application number: PCT/US2001/001037
Authority: WO
Inventors: Peter T. Chang; James H. Kim; Bernard B. Moon
Original assignee: VIEWPLUS Inc
Current assignee: VIEWPLUS Inc
Priority date: 2000-01-11
Filing date: 2001-01-11
Publication date: 2001-07-19
Anticipated expiration: 2002-07-11
Also published as: AU2001229400A1

Abstract

The present invention is directed to an improved system and method for pricing the delivery of audiovisual content via an interactive system, which heeds to the market conditions of various audiovisual content. The present invention provides a pricing option for delivery of audiovisual content via an interactive communication system, based on the number of subscribers for the delivery of a specific audiovisual content in a way that the delivery price is reduced in relation to the number of subscribers ordering such delivery. The present invention also provides a pricing option for delivery of audiovisual content via an interactive communication system, based on the sequence of the orders placed by various subscribers in a way that encourages a prospective subscriber to order the delivery of said content at the earliest possible time.

Description

SYSTEM AND METHOD FOR DYNAMICALLY PRICING PAY-PROGRAMMING

BACKGROUND OF THE INVENTION

1. Field of the Invention

The present invention relates to a system and method for dynamically pricing the delivery of audiovisual content via an interactive communication system.

2. Description of Related Art

Development of a system for delivering audiovisual content via an interactive communication system faces many obstacles, including limited availability of bandwidths, heavy reliance on infrastructure hardware, high head-end and terminal costs, and low return on investment for cable operations and video-on-demand (VOD) providers. Facing limited availability of bandwidths, a service provider will have to invest in either expanding its hardware infrastructure or optimizing its existing hardware. One way to optimize the existing hardware is through the pricing of the delivery of the audiovisual content.

Systems which provide relatively simple pricing options for delivery of audiovisual content via an interactive communication system have been described.

U.S. Patent No. 5,835,843 to Haddad describes an interactive communication system, in which the viewers are allowed to select variable time allowance intervals for the program they requested from a central audiovisual library, instead of a predetermined central broadcast menu. In the system described, the viewers indicate the minimum and maximum amount of time they will wait for the delivery of their request. The distributor will deliver the selected program within the time limits set by the viewer. The system allows the viewers to receive and store their selection(s), and to view them subsequently at any time the viewer chooses. Since the system provides for delivery of requested programs within a certain time interval, which can range from a number of hours to a number of days, the system allows for off-peak delivery of requested programs in certain circumstances. The system allows the distributor to shift demand away from the peak hours without limiting the viewer to a pre-set or limited menu of programs. The system allows product pricing strategy that encourages distribution during off-peak hours and thereby utilizes the system hardware more fully. U.S. Patent No. 5,673,430 to Story describes a system for receiving sets of program requests from a plurality of subscriber locations and delivering programs that match or closely match the selected programming preferences or content requests. The system disclosed applies optimization techniques to identify a set of satisfying programs and deliver preferably through multicasting, to each subscriber location a set of programs satisfying the desired programming requests. The optimization described entails the efforts and processes of making a decision, a design, or the interactive cable system as perfect or effective as possible by satisfying each subscriber and reducing the cost to the service provider by multicasting the selected preferences to two or more subscriber locations, rather than pointcasting individual programming preferences. In so doing, the system described attempts to reduce the cost for transport bandwidth from the access provider, server bandwidth, and/or content royalties to the content provider. The system allows for reduction of costs to the program service providers when multiple subscribers can share the same programming, which occupies the same amount of bandwidth regardless of the number of subscribers. However, under this system, the subscriber does not necessarily get his/her selected program when the cost of delivering such program exceeds a certain cost constraint. On the other hand, if the subscriber indicates a willingness to pay a higher fee and the service provider has adequate video-playing and data communication equipment, the service provider can deliver the selected program at a cost that exceeds the maximum cost constraint.

As illustrated above, pricing options have been explored as a means to optimize the use of the existing hardware in a system for delivering audiovisual content. However, severe limitations exceed in the existing systems. The system described in U.S. Patent No. 5,835,843 to Haddad, attempts to arrange the delivery of content during the off-peak times, rather than the peak times, to reduce the cost for delivering the content and the burden on the hardware. It suggests that pricing can be adjusted accordingly to allow such allocation. Nevertheless, the pricing arrangement depends on the amount of time indicated by the subscriber within which the audiovisual content is to be delivered. The system described in U.S. Patent No. 5,673,430 to Story attempts to optimize the use of the existing bandwidth by multicasting programs, instead of pointcasting individual programming preferences. None of these existing systems contemplate adjustment of prices based on the specific content to be delivered. Indeed, in the system described in the U.S. Patent No. 5,673,430, the subscriber may not even receive the programs he or she selects.

The demand for more popular audiovisual content is, by definition, higher than that for the less popular audiovisual content. Further, the demand for delivery of video content at the peak viewing hours is generally higher than that at the off-peak viewing hours. The amount of bandwidth occupied by the delivery of a video content is the same regardless of the number of subscribers receiving such content. Accordingly, the lower is the demand for a specific video content, the lower is the revenue generated by delivering such content. Delivering a video content that is in low demand will occupy limited bandwidth, which can otherwise be made available for carrying content that is in higher demand.

The existing systems do not provide pricing options that are directly responsive to such market demands for various audiovisual contents. The existing systems do not provide pricing options that will attempt to maximize the number of subscribers to receive delivery of either popular or less popular audiovisual content during either peak viewing hours or off-peak viewing hours, thereby increasing the revenues for the audiovisual service provider at all times. Consequently, it is desirable to have an improved system and method for pricing the delivery of such content that is more efficient and responsive to the market demands of various audiovisual content.

SUMMARY OF THE INVENTION

The present invention is directed to an improved system and method for dynamically pricing the delivery of audiovisual content via an interactive communication, which heeds to the market demand conditions of various audiovisual content.

In accordance with one aspect of the present invention, the distributor will present to the subscribers with a ceiling price. As more subscribers order a video, the price for that video will drop in relation to the number of subscribers ordering it. For example, the distributor will offer "Titanic" for the price of $3.25. If more than 10 people order that movie, the price will be lowered to $3.00. The addition of another 20 orders will reduce the price to $2.75. This trend will continue until it reaches a baseline price of $2.50. This process will entice subscribers by empowering them to influence the pricing of the video they order and provide subscribers with a volume discount. This ordering process may be targeted toward the offering of the popular video titles at prime viewing hours. In another aspect of the present invention, the distributor offers a video at a baseline price.

The pricing of the video depends on the sequence in which various subscribers order that video. As the number of subscribers reaches predetermined levels, the price will increase. For example, the first hundred subscribers will receive the baseline price of $1.00. The next hundred will receive the price of $1.50. This trend will continue until it reaches the ceiling price of $2.50. The subscribers will be notified that once they enter their orders, they will be committed to ordering the video at their respective position in the sequence. Under this pricing scheme, subscribers enjoy discounts if they make their orders earlier. This ordering process may be targeted toward the offering of the less popular video titles or popular video titles to be delivered at off-peak viewing hours. The invention applies not only to delivery of video content, but also to other services based on an interactive communication model, such as e-commerce, music-on-demand, game-on- demand, etc. For purpose of illustrating the inventive concept, the present invention is described using the example of video-on-demand (VOD) services.

BRIEF DESCRIPTION OF THE DRAWINGS

Fig. 1 is a schematic representation of one embodiment of an information exchange network through which audiovisual content may be delivered or orders for delivery of audiovisual content may be made in accordance with the present invention.

Fig. 2 is a schematic representation of one embodiment of a computer system which facilitates the delivery of audiovisual content via an information exchange network in accordance with the present invention.

Fig. 3 is a schematic representation of a broadcast TV system that delivers audiovisual content in accordance with the present invention.

Fig. 4 is a schematic representation of a conventional cable TV system that delivers audiovisual content in accordance with the present invention.

Fig. 5 is a block diagram for one embodiment of an interactive communication system, involving a VOD service system and a CATV cable network for delivery of audiovisual content in accordance with the present invention.

Fig. 6 is a block diagram for the VOD service system.

Fig. 7 is a flow diagram of one embodiment of the ordering process, which incorporates the pricing method and system of the present invention.

Fig. 8 is a flow diagram of an aspect of the present invention, determining which orders are to be processed based on the quantity of the orders, and which are to be processed based on the sequence of the orders.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

The present description is of the best currently contemplated mode of carrying out the invention. This description is made for the purpose of illustrating the general principles of the invention and should not be taken in a limiting sense. The scope of the invention is best determined by reference to the appended claims.

The present invention is directed to pricing for delivery of audiovisual content via an interactive communication network. To facilitate an understanding of the principles and features of the present invention, they are explained herein below with reference to its deployments and implementations in illustrative embodiments. By way of example and not limitation, the present invention is described herein below in reference to examples of deployments and implementations for pricing for delivery of video content via an interactive communication network. Such interactive communication network can be any interactive network allowing two-way interactivitiy, including an information network environment such as the Internet, a cable network, or a satellite broadcast network.

The present invention can find utility in a variety of implementations without departing from the scope and spirit of the invention, as will be apparent from an understanding of the principles that underlie the invention. It is understood that the pricing concept of the present invention may be applied to pricing for services of other nature, for a wide range of service offerings, whether in an information network environment or otherwise. For example, the pricing scheme of the present invention may be applied to service offerings such as e- commerce, music-on-demand, game-on-demand, news service, or otherwise.

As used in the context of the present invention, and generally, service providers include any entity that is indirectly or directly offering services of delivery of audiovisual content, such as an intermediary (e.g., an Internet portal), a reseller or broker of services, a cable television station, a satellite broadcasting station, a VOD supplier, or a direct provider of other services, including without limitation suppliers, contractors, subcontractors, bidders, merchants, and the like. The terms "buyers", "customers", "purchaser", "users", "subscribers" and the like, refer to any seekers of audiovisual content via an interactive communication network, and may include without limitation, resellers or brokers of services, or purchasing agents for end users.

Information Exchange Network

The platform for receiving the request for delivery of audiovisual content and for delivering the audiovisual content may involve, without limitation, distributed information exchange networks, such as public and private computer networks (e.g., Internet, Intranet, WAN, LAN, etc.), value-added networks, communications networks (e.g., wired or wireless networks), broadcast networks, cable networks, and a homogeneous or heterogeneous combination of such networks. It will be appreciated that these networks may be interchanged to perform the various interactive functions, such as receiving a request from the subscriber and delivering the requested content. For example, a subscriber may request an audiovisual content via the Internet and receive the content via the cable network, or vice versa.

As will be appreciated by those skilled in the art, the networks include both hardware and software and can be viewed as either, or both, according to which description is most helpful for a particular purpose. For example, the network can be described as a set of hardware nodes that can be interconnected by a communications facility, or alternatively, as the communications facility, or alternatively, as the communications facility itself with or without the nodes. It will be further appreciated that the line between hardware and software is not always sharp, it being understood by those skilled in the art that such networks and communications facility involve both software and hardware aspects.

Useful devices for performing the operations of the present invention include, but is not limited to, general or specific purpose digital processing and/or computing devices, which devices may be stand-alone devices or part of a larger system. The devices may be selectively activated or reconfigured by a program, routine and/or a sequence of instructions and/or logic stored in the devices. In short, use of the methods described and suggested herein is not limited to a particular processing configuration. Prior to discussing details of the inventive aspects of the present invention, it is helpful to discuss one example of a network environment in which the present invention may be implemented. Ordering Audiovisual Content Via the Internet

The Internet is an example of the use of an information exchange network including a computer network in which the present invention may be implemented, as illustrated schematically in Fig. 1. Many servers 10 are connected to many clients 12 via Internet network 14, which comprises a large number of connected information networks that act as a coordinated whole. Details of various hardware and software components comprising the Internet network 14 are not shown (such as servers, routers, gateways, etc.) as they are well known in the art. Further, it is understood that access to the Internet by the servers 10 and clients 12 may be via suitable transmission medium, such as coaxial cable, telephone wire, wireless RF links, or the like. Communication between the servers 10 and the clients 12 takes place by means of an established protocol. As will be noted below, the pricing system of the present invention may be configured in or as one of the servers 10, which may be accessed by subscribers and service providers via clients 12.

Turning now to Fig. 2, there is schematically illustrated one embodiment of a computer system 20 which may be configured as the client 12 for navigating the Internet. The computer system 20 communicates with the Internet network 14. The computer system 20 includes a processor 22, internal random-access memory (RAM) 23 and read-only memory (ROM) 25, and a data bus architecture for coupling the processor 22 to various internal and external components. The computer system 20 further includes a communication device 36 which, in turn, is coupled to a communication channel 38 for effecting communication with the Internet network 14. A mass storage device 34, such as a hard disk drive or floppy disk drive or CD- ROM drive, is coupled to the processor 22 for storing utility and application software (including a suitable web browser for navigating the Internet) and other data. The application software is executed or performed by the processor 22.

User actuatable input devices are also coupled to the processor 22, including a cursor positioning device 30 and a keyboard 32 in accordance with the present invention. The cursor positioning device 30 is representative of any number of input devices that produce signals corresponding to a cursor location on the display 24, and may include by way of example, a mouse, a trackball, an electronic pen, or a touch-pad, which may be an integral part of the keyboard 32. A display 24 is coupled to the processor 22 through a video controller 28. The video controller 28 coordinates the presentation of information on the display 24 in one or more windows 26. Generally, the windows 26 are scalable, thus permitting a user to define the size and location of a particular window 26 on the display 24.

The server 10 could also have similar components as the computer system 20 depicted in Fig. 2. The program configuration of the client 12 and server 10 would be apparent given the disclosure of the desired functions of the client 12 and server 10 disclosed herein below.

It is contemplated that the subscribers can place their orders for their selected audiovisual content via the Internet. With the appropriate hardware and software, it is contemplated that the subscribers may receive the delivery of their audiovisual content via the Internet as well. Such basic online processes are well known in the art. Broadcast or Cable Network

Fig. 3 shows a broadcast TV system 100 that may implement the present invention. The system 100 comprises of a broadcast system 102, an antenna 104, and a television 106. Although there are many broadcast systems in a broadcast TV system 100 (at least one for each broadcast channel), only broadcast system 102 is shown for the sake of simplicity. Suppose one wishes to watch a show from the audiovisual library 108 of the broadcaster in

Los Angeles carried on broadcast TV. First, the broadcaster would need to retrieve the desired program from the audiovisual library 108. The audiovisual library 108 is connected to a transmitter 112. The transmitter 112 broadcasts signals 114. Locations in the Los Angeles area may be able to pick up the signals 114 with the antenna 104. However, other locations, for example, in New York, would pick up the signals 114 after they have been transmitted to a satellite 1 16, then to a local receiver 118 in, for example, New York, which broadcast directly or via another transmitter 120, for pickup by another antenna 122. Antennae 104 and 122 are connected to televisions 106 and 124, respectively. This allows a person in New York to watch the same show as a person in Los Angeles.

Fig. 4 shows a cable TV system 140 that may implement the present invention. The system 140 comprises of a receiver 150, a transmitter 152, a plurality of local receivers 154, 156, 158, and a cable network 160, connecting local receiver 154 to a plurality of homes 166, 168, and 170. Local receivers 156 and 158 are also connected, via cable network 160, to other homes (not shown). The receiver 150 receives signals from a plurality of broadcast systems, each similar to broadcast system 102 of Fig. 3, or from a plurality of audiovisual libraries. A combined signal 178 is formed and is transmitted by transmitter 152 to the plurality of local receivers 154, 156, and 158. The cable network 160 carries the combined signal 178 into homes 166, 168, and 170, respectively, where signals may be displayed and, if necessary, decoded via cable set-top boxes 172, 174 and 176.

VOD Service Delivered on a CATV Cable Network Fig. 5 shows a VOD service system 200 connected to the subscribers 210 through a CATV cable network 220.

Fig. 6 shows the major components of the VOD service system 200: (a) a receiving module for audiovisual content 310; (b) a storage module for audiovisual content 320; (c) a signal conversion module 330; (d) a frequency modulation module 340; (e) a communication module 350; (f) a control module 360 and (g) a management module 370. The receiving module for audiovisual content 310 receives signals from the VOD service provider. The storage module for audiovisual content 320 stores the signals received by the receiving module 310.

The storage module 320 is composed of a backup part 321, a juke box 322, and a hard disk 323. The backup part 321 receives and stores a backup copy of the signals received by the receiving module in a video tape, whereas the juke box 322 stores a number of DVDs (digital video disks). The juke box 322 plays a DVD and sends output of the audiovisual content upon a request for such content. The hard disk 323 stores the audiovisual content requested by a subscriber for a relatively short period.

The signal conversion module 330 converts MPEG audiovisual signals to be transmitted to the subscriber into analog or digital TV signals. The signal conversion module 330 is composed of a server 331 and a signal conversion part 332. The server 331 loads the prescribed audiovisual signals from the storage module 320 according to the control parameter sent from the control module 360, transmits the audiovisual signals to the signal conversion part 332, and controls the signal conversion operation of the signal conversion part 332. The signal conversion part 332 is composed of multiple signal converters (332a, 332b, etc.), and each signal converter is capable of converting the MPEG audiovisual signals loaded from the storage module 320 into analog signals, which satisfy either NTSC or PAL TV systems, or digital signals. In other words, for those areas such as the U.S., where a TV display is scanned by the NTSC system, it is set up so that the converted TV signals may be displayed in a NTSC TV system. For those areas such as Europe where a TV display is scanned by the PAL system, it is set up so that the converted TV signals may be displayed in a PAL TV system. The fact that the converter is capable of converting the MPEG signals into either analog or digital signals enables the system to be compatible with the digital TV system, of which the popularity is expected to increase over time. The frequency modulation module 340 modulates the converted TV signal output from the signal conversion module to a frequency of a transmission channel and transmits the signal via the appropriate channel to the subscribers. The communication module 350 is a modem used to communicate with a set-top box of a subscriber via a CATV cable network, similar to the set-top boxes described in Fig. 4.

The control module 360 controls the components in the CATV cable network 220 so that audiovisual signals may be transmitted via available channels to a subscriber who has completed the certification process of the management module 370 and has been determined to be a regular member for the VOD delivery services. The control module also processes the subscribers' orders and commands the other components, such as the storage module 320, the frequency modulation module 340, and the signal conversion module 330, to deliver the requested audiovisual content. The subscribers' orders come from a set- top box, similar to the ones indicated in Figure 3 through the communication module 350 or from the service provider's website if the order is transmitted through the Internet.

The management module 370 compares the ID and password of a subscriber entered through the communication module 350 with the subscriber's information stored in advance, performs the certification process to determine whether the subscriber requesting the audiovisual signals has completed normal procedures to become a regular member for the VOD delivery services and informs the control module 360 of the results. Order Processing A subscriber places an order request for a video program via a set-top box, similar to the set-top box shown in Figure 4, or at the service provider's website. The set-top box is equipped with the communication function to send order information, and receive the assigned channel and electronic program guide ("EPG") information. Alternatively, if an order is placed with the service provider's server via a login procedure over a distributed network, such as the Internet, the use of a set-top box may not be necessary. The order may be processed at the backend at the VOD service provider, or at the front end at the subscriber, or both. Further, it is contemplated that the subscribers may place an order via a conventional telephone, or any other two-way interactive system.

A representative flowchart of the order process for processing orders placed via the Internet is shown in Fig. 7 as follows: On receiving an incoming message 400, the system asks for a login identification 405. If the subscriber has not been registered with the service provider (410), the system will prompt the subscriber to register himself with the service provider by providing certain information about the subscriber (415). If the subscriber has already been registered with the service provider, the system will retrieve information about the subscriber (420). Upon retrieving information about the subscriber, the system will display information specific to that subscriber. (425). The system will also display various offers of video programs in the current timeslot (430). Such display can be on a customized webpage for each individual subscriber, a EPG display via the modem in a CATV cable network, or any other similar display environment. The contents for such display includes the listing of available contents and their respective pricing and ordering information. The content listing, pricing and ordering information displayed is generated in real-time from the control module 360 and delivered for active promotion to the subscribers. This real-time display of the content listing, pricing and ordering information serves as an important and dynamic promotion tool for contents to be delivered under either the sequence-based pricing system or the quantity-based pricing system, as well as any content on the TopList, as is later described. The control module determines the pricing of each delivery of audiovisual content based on the subscribers' participation as is later described herein.

Once the subscriber makes a selection or selections of his preferred audiovisual content, the subscriber will be prompted to enter an order for such content (435). If the subscriber enters an order for any such content, the system will display the estimated start time for such content (445). Thereafter, the subscriber will be prompted to confirm his order (450). The system then determines the type of the subscriber's order for purposes of pricing the specific order (465).

Determine Order Type (465) A representative flowchart of the part of the order process concerning the determination of the type of a specific order is shown in Fig. 8.

Several terms and phrases used in Fig. 8 are defined as follows:

• TopList is a list of video contents that are in high demand.

• PeakTimeList is a list of timeslots for the movie ordered when the subscriber's demand is expected to be high compared to the rest of the timeslots during the day.

• PlayList is a toplist for the current timeslot in consideration for order processing. TopList and PeakTimeList are determined based on the expected customer demand.

However, they can be continually adjusted to incorporate changes in demand patterns. The video contents listed in the TopList can be continually changed to accommodate the change in demand patterns for particular movies throughout the day, for example, depending on the demographics of the targeted viewers at a particular time slot. For example, certain types of movie may have more appealing to subscribers who are at home in the afternoon for a particular day and in the late night. Similarly, the PeakTimeList may be adjusted depending on the demand levels for the specific movie ordered at various ranges of times. The process may be carried out in real time by the VOD service provider or automated to update the TopList and the PeakTimeList based on some predetermined criteria in relation to the demand levels for the specific video contents, e.g., time of day, movie type and demographics of targeted subscribers. PlayList is reset to TopList at the beginning of each timeslot. Therefore, by definition, and default, a video in the TopList will be in the PlayList in every timeslot. The system first determines whether the video ordered is in the PlayList (520). If the video ordered is not in the PlayList, the type of the order will be determined to be normal (525). When a video order is determined to be normal, it means that the video will be priced at a predetermined price without any variation, for example, $1.00. The audiovisual contents that are not in the PlayList are, by definitions, not in high demand. Thus, the predetermined price can be set at a relatively high number to discourage subscribers from ordering audiovisual contents not in the PlayList, so as to avoid a relatively small number of subscribers ordering a less popular audiovisual content and occupying the limited bandwidth. However, once a video has been ordered for a specific timeslot, the video will be put in the PlayList, thus triggering the various pricing options: sequence-based and quantity -based. If the video ordered is already in the PlayList, it will be checked against the TopList (535). If the video ordered is not in the TopList, i.e., not one of the video contents that are in high demand, sequence-based pricing will be applied (540).

If the video ordered is in both the PlayList and the TopList, the order will be checked to see if the current timeslot is in the PeakTimeList for the specific video ordered (545). If the current timeslot is not in the PeakTimeList, sequence-based pricing will be applied (545).

If the video ordered is in both the PlayList and the TopList and the current timeslot is in the PeakTimeList, quantity-based pricing will be applied (555). Pricing Delivery of Content Based on Order Type As indicated in Figure 7, once the order type is determined, several pricing options may be applied depending on the order type (470). If the order type is normal, a predetermined price for a video will be chosen. The information for that order will then be sent to a specific database which stores information for that subscriber (485). It is anticipated that the price for such video request will be lower than a request for a video on the TopList, and even much lower than the price for a request for a video on the TopList to be delivered in a timeslot that is in the PeakTimeList. The video will be played/delivered at the scheduled time (510). If the order type is determined to be sequence-based, the system will determine the price based on the position of the order in the sequence of the orders entered thus far for such content to be delivered at the same timeslot (480). The sequence-based pricing method prices the delivery of the content at several predetermined levels. For the first M number of subscribers who order the delivery of such content at the specified timeslot, they will receive delivery at a baseline price. For the next N number of subscribers who order the delivery of such content at the same timeslot, they will receive delivery at a price higher than the baseline price. The numbers M and N may be the same. This gradual increase in the delivery price may continue as the number of subscribers continues to increase, up to a point when the price for delivery has reached a predetermined maximum price for delivery of such content at the specific timeslot. Once the price has been determined based on the position of the order made by the subscriber, the system will display the actual delivery price and the position of the order (490). The information for that order will then be sent to a specific database which stores information for that subscriber (500). The video will be played/delivered at the scheduled time.

As mentioned above, it is anticipated that the sequence-based pricing option is applied to the delivery of the less popular audiovisual content. The gradual increase in the delivery price as the number of subscribers increases provides an incentive for a prospective subscriber to order the audiovisual content as early as possible in order to benefit from the lower delivery price. It is also anticipated that the display (430) of existing orders in real-time for a specific less popular audiovisual content by certain subscribers will serve as an advertisement for such audiovisual content. Further, it will appeal to those subscribers, who do not want to pass on a bargain, to order the same content for delivery at the same time in order to benefit from the lower delivery price before the delivery price increases any further. If the order type is determined to be a quantity-based, the system will determine the price for delivery of such content based on the total number of subscribers for the delivery of such content at the specified timeslot, which is in the PeakTimeList. The information for that order is sent to a specific database which stores information for that subscriber (475). The quantity -based pricing method first sets a ceiling price for the delivery of such content. As more subscribers order that content, the price for delivering the content will drop in relation to the number of subscribers ordering it. For example, the service provider may offer "Titanic" for the price of $3.25. If more than 10 subscribers order the movie, the price will be reduced to $3.00. An additional 20 subscribers will reduce the price further to $2.75. This trend continues until the price for delivering the content reaches a predetermined baseline price, for example, $2.50. The ceiling price is generally higher than the normal price for delivering an audiovisual content that is less popular, i.e., not in the TopList, or for delivering an audiovisual content at non-Peak times. The quantity-based pricing method empowers a subscriber to influence, and perhaps reduce, the price for the delivery of a popular audiovisual content at peak times. Again, when the subscriber is offered on display (430) the popular audiovisual content with the real-time display of content listing, ordering and pricing information, the subscriber will be reminded that the more subscribers order the audiovisual content, the more he or she may save for ordering the content. The final price is determined based on the total quantity ordered (495), and the final price may be displayed along with the total number of orders placed (505). The video is played/delivered at the scheduled time (510).

Subscriber order processing via the CATV cable network 220 (using an interactive set-top box at the subscriber's site) may be similar to the order process via the Internet described above, except that the login procedure may be simplified to omit some of the user verification steps since the set-top box is tied to a particular subscriber site. The order may be placed via a program guide or other types of graphical user interface rendered on the TV screen. Alternatively, if an interactive modem is not available to the subscriber, the process may provide for receiving order instructions from the subscriber via telephone (with appropriate user verification procedure) and providing automated audio response to facilitate the subscriber selection of the desired programming.

It is noted that the order processing functions may be implemented at the backend by the VOD service system 200 in the case of CATV network (Fig. 5) or the VOD service provider's server 10 in the case of the Internet (Fig. 1), or at the front end at the subscriber's interactive device, such as the set-top box in the case of CATV network, or the subscriber's computer in the case of the Internet, or partially in the backend and partially in the front end, without departing from the scope and spirit of the present invention.

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The process and system of the present invention has been described above in terms of functional modules in block diagram format. It is understood that unless otherwise stated to the contrary herein, one or more functions may be integrated in a single physical device or a software module in a software product, or a function may be implemented in separate physical devices or software modules, without departing from the scope and spirit of the present invention. It is appreciated that detailed discussion of the actual implementation of each module is not necessary for an enabling understanding of the invention. The actual implementation is well within the routine skill of a programmer and system engineer, given the disclosure herein of the system attributes, functionality and inter-relationship of the various functional modules in the system. A person skilled in the art, applying ordinary skill can practice the present invention without undue experimentation. While the invention has been described with respect to the described embodiments in accordance therewith, it will be apparent to those skilled in the art that various modifications and improvements may be made without departing from the scope and spirit of the invention. Accordingly, it is to be understood that the invention is not to be limited by the specific illustrated embodiments, but only by the scope of the appended claims.

Claims

1. A process for pricing the delivery of a content by a service provider, comprising the steps of:

(a) setting an initial price for the delivery of a content at a specific time;

(b) receiving a request from a customer for the delivery of said content;

(c) adjusting the price for the delivery of said content in response to said request from said customer; (d) wherein said price for the delivery of said content is adjusted upward as the number of customers requesting the delivery of said content increases.

2. A process as in claim 1, wherein said price starts adjusting upward when the number of customers exceeds a predetermined threshold.

3. A process as in claim 2, wherein said price is adjusted upward until said adjusted price reaches a predetermined limit.

4. A process as in claim 1 , wherein said request is received via a set-top box.

5. A process as in claim 1 , wherein said request is received via the Internet.

6. A process as in claim 1 , wherein the delivery of said content at said specific time is categorized according to a plurality of parameters.

7. A process as in claim 6, wherein said parameters include at least one of the demand for the delivery of said content, the time at which said content is to be delivered, and other contents scheduled to be delivered at the same time.

8. A process as in claim 7, wherein said categorization is done on a real-time basis.

9. A process for pricing for the delivery of a content by a service provider, comprising the steps of:

(a) setting an initial price for the delivery of a content at a specific time; (b) receiving a request from customers for the delivery of said content;

(c) adjusting the price for the delivery of said content in response to said request from said customer;

(d) wherein said price for the delivery of said content is adjusted downward as the number of customers requesting the delivery of said content increases.

10. A process as in claim 9, wherein said price starts adjusting downward when the number of customers exceeds a predetermined threshold.

11. A process as in claim 10, wherein said price is adjusted downward until said adjusted price reaches a predetermined limit.

12. A process as in claim 9, wherein said request is received via a set-top box.

13. A process as in claim 1, wherein said request is received via the Internet.

14. A process as in claim 1 , wherein the delivery of said content at said specific time is categorized according to a plurality of parameters.

15. A process as in claim 14, wherein said parameters include at least one of the demand for the delivery of said content, the time at which said content is to be delivered, and other contents scheduled to be delivered at the same time.

16. A process as in claim 15, wherein said categorization is done on a real-time basis.

17. A process for pricing delivery of a content by a service provider, comprising the steps of: predetermining the initial pricing for the content depending on the anticipated demand by targeted customers; receiving a request from a customer for the content; determining the order status of the content by other customers; and pricing the delivery of the content depending on said order status.

18. A process as in claim 17 wherein the order status include consideration of at least one of the demand by customers, the time at which the content is to be delivered to the customers, and other contents scheduled to be delivered at the same time.

19. A process as in claim 18, wherein the pricing increases or decreases depending on the order status.

20. A process as in claim 19, wherein said request is sent over an interactive communication system.