The European video-on-demand (VOD) industry has been particularly dynamic over the past nine years. To date, PC-based-VOD services outnumber TV-based-VOD services. In the medium term, however, TV-based-VOD services will play a central role in the European VOD industry. Growing consumer interest in TV-based VOD will not be the only factor that explains this evolution; targeted advertising will also contribute to helping TV-based VOD flourish.