Commercial broadcaster RTL has taken a 65% interest in The Entertainment Group, owner of Videoland On Demand, making it the biggest player in the fast-growing video-on-demand market.

Videoland On Demand has 1.5 million users and will provide RTL with a bridge into its on-demand strategy, RTL director Bert Habets told the Financieele Dagblad.

The broadcaster is already experimenting with pay-per-view but wants to broaden its scope for generating income directly from the consumer now television advertising revenue is falling.

The on-demand channel will offer American and Dutch films and series, initially at the Videoland price of €4.99 per film or series. Later this year, RTL will offer a subscription at €10 per month for access to all the available content, the paper says.

RTL will be in competition with on-demand players such as UPC, Ziggo and the American Netflix which plans to enter the Dutch market before the end of the year.