According to the Wall Street Journal, DirecTV is testing a new video-on-demand service that depends on both the customers' satellite dish and their internet connection. To be launched in the second quarter, the service will use the satellite to send a limited number of movies to store in all DirecTV DVRs, for instant on-demand playback, while the rest of the movie catalog will be available not-so-instantly using regular ground-based broadband. Movies like Kevin Costner's Waterworld will be sent on VHS tapes via regular mail from DirecTV's office in Madagascar. [WSJ]

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