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In March 1998, Hongkong Telecom''s Interactive Multimedia Services (IMS) unit launched the world''s first commercial Video-on-Demand (VOD) system. Worldwide interest resulted from both the implementation of the world''s first commercial VOD system - an expensive high-technology service for which consumer demand had yet to be proven - and for the launching of the first generation of interactiv television (iTV) systems. In taking the new technology to market, how was IMS to go about generating demand for the service, and how could they forecast technological adoption rates in the market? What was the role of the government in regulating the new business environment? And what issues were associated with such large - and long term - capital investments. A Spanish translation is available ''E599-009-1''.