Germany’s Magic Portal

Representing about 40 million TV households, Germans now receive virtually all on-demand content by Blu-ray Disc or DVD. Video-on-demand services are set to change that over the next three to five years, says Christoph Wagner, a partner in Morrison & Foerster's new Berlin office. "Look for dynamic, if not explosive interest in VoD as broadband penetration increases and major players consolidate the presently fragmented on-demand market," says Wagner, an expert in the TMT (technology, media, and telecommunications) sector, key to Germany's economy.

With the EU pushing hard for a pan-European regulatory framework around VoD, smaller players are likely out, while the big boys—U.S. Internet providers specifically—may have to pay to play. "There is a defensive wall against U.S. giants freely accessing the infrastructure," Wagner says, "although that may hinder growth."