Irish web services software firm Cape Clear has announced that it built Channel 4's video on demand service, which allows television programmes to be downloaded.

The recently launched 4oD service uses Cape Clear's software to manage all digital content in its library. Channel 4 said it believes the system will ultimately be able to handle up to 250,000 different programmes.

Cape Clear did not divulge the value of the contract, but the company's senior vice-president for products, David Clarke, said it was in the "upper quartile" of deals the company has won. Based on the value of previous contracts announced by Cape Clear, The Irish Times understands the deal to be worth around €1 million to the firm.

Bob Harris, the executive responsible for IT strategy and architecture at Channel 4, said Cape Clear was chosen because of the speed with which the project could be completed. "We selected Cape Clear's ESB Platform for our PC VOD services because it met our technical criteria and supported the tight project deadlines required if we wish to stay ahead of our competitors during this industry shift," said Mr Harris.

Programmes available on the service include those commissioned by Channel 4, such as Father Ted, and shows it has bought from other sources including Comedy Central's The Daily Show.

Users can rent shows for 99p (€1.47) and films for £1.99 (€2.95) and can watch them multiple times during a 48-hour period. Cape Clear has implemented a service-oriented architecture (SOA) that enables Channel 4 to automate the business processes required to manage the content and make it available to subscribers. Mr Clarke said the contract opened the door to a number of other potential deals with broadcasters which he hoped the company could announce in the coming months.

Recent research suggests that, by the end of the decade, one-third of the world's television viewing households will be using video on demand services.