There is also one other cable provider, the OP doesnt mention VM anywhere and has no location to give direction.
All points raised valid, making channels on demand would seem to fix the problems, the pin wouldnt work as it would drive people mad especially channel hoppers like me.
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I don't even know if VM's headends & network can hack that many extra on demand requests and video streams floating around, but it would make changing channel hideously slow. At least 5 extra seconds, i'd guess.
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I have no idea on this stuff I struggle turning the TV on, but suspect it would not unless this was planed when originally developing VOD.
Wouldn't ths actually free up masses of capacity/bandwidth too?
In actual fact I havent heard anything about this and I would have thought I would, especially if cards were being sent out in Feb