Small guys carve out niche in VOD

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The online video craze has spawned a new business segment among video-on-demand start ups.

IWatchNow is one. The Santa Monica startup is a VOD service that rents hard-to-find TV and movie videos to consumers. The cost is 99¢ for 24 hours.

The 2,000-item stock ranges from the original "Chronicles of Narnia" to "Dirtiest Dozen with Chris Rock and Tim Allen," (unavailable on DVD) to "Rescue from Gilligan's Island."

IWatchNow.com joins Vongo.com, vod.com and others that seek to appeal to the consumer niche that seeks video entertainment online. Although it is a small audience right now, CEO William Sager said iWatchNow is in the right place at the right time. "You have a lot of built-up demand from consumers that are looking to get video in the same way they've been listening to music online all these years," he said.

Some 6,000 visitors find his site each day though he hasn't started marketing. But he has high hopes for the 248 movies and TV shows he's shipped to Google Video Store for which his firm will receive a revenue share.

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