Blogs have been buzzing about the recent launch of video on demand, content generation service SeeSaw, discussing the service’s all-important business model.

The Guardian’s Organ Grinder blog has taken the view that the service has been hurriedly launched so as to take full advantage of growing interest in on demand broadcasting – a service first penned by one of the most popular online news providers - the BBC.

It is reported that SeeSaw’s rapid launch was to quickly create a stronghold in the UK video on demand market which is expected to soon become rather crowded with other companies such as BSkyB getting on the bandwagon.

At the moment, SeeSaw is offering free UK programmes to users but it plans to add a pay per programme feature in the Summer which will prove a test of the company’s success.

For each programme watched on the new service, there will be two minutes of advertising shown in pre-programme and mid-programme breaks. Such advertising is incredibly cheap when compared to standard broadcast advertising so the success of such revenue will depend not only on subscription, but on selling a lot of advertising products.

When the subscription service is launched in June, industry commentators have stated that it may be difficult to find a balance between offering free and paid for services. However, SeeSaw platform controller, John Keeling mentions that the pay structure would be explained clearly to users.

The Guardian reports that one of the main weakness of the SeeSaw business model is that it remains a service mainly aimed at computers and laptops, instead of showing on television screens. SeeSaw will also not be available in an HD format.

Nevertheless, SeeSaw’s managerial team is comprised of some of the best industry experts, thus the venture is surely more likely to be a success…