AOL Time Warner, the planet’s largest media group, has put its muscle behind a new division to integrate interactive TV services with video-on-demand.

The division has been created by the merger of AOL TW’s formerly discrete cable and iTV units, with cable boss James Collins at the helm. Enthuses Collins: “Over time, this is going to be the predominant way that Americans watch TV. You get the programme you want, when you want it.”

Currently under test in South Carolina, the service allows HBO subscribers to decide at the push of a button when and which of the channel’s shows they watch, with the facility to stop and review the broadcast as they wish.

According to Collins, who reports direct to AOL TW chief executive Gerald Levin, the service requires no new cable infrastructure, simply a set-top box. Some 2.5 million existing Time Warner cable customers already have these boxes.

News source: Financial Times