Light Reading

Comcast Ready to Mine for VoD Gold

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner

NEW YORK -- Comcast Corp. (Nasdaq: CMCSA, CMCSK) is pumping out 400 million video-on-demand (VoD) streams per month, and the bulk of them are TV shows, so it's high time for the MSO to start making some money on the platform.

The goal now is to "monetize that content ... as well or better than how we monetize linear," Comcast Senior VP of Video Services Marcien Jenckes said Wednesday at an event on advanced advertising put on by Multichannel News and Broadcasting & Cable.

Cable's been trying to do this for a while, but only recently has the technology reached a stage where an MSO can switch ads dynamically within VoD streams and help pay the freight for all that "free" on-demand fare. Jenckes estimates that 70 percent of the MSO's VoD consumption falls into that category, with television shows being the most popular "by far."

Jenckes insists that this part of the cable advertising business is now ready to scale. Comcast has rolled out dynamic VoD ad insertion in most markets. The only holdouts are Western Pennsylvania and Denver, but they'll be added in a couple of months when they are hooked into Comcast's content delivery network, Jenckes said. (See Comcast's 'Project Infinity' Takes Flight .)

Comcast's platform currently allows for ads to be inserted at the start and end of VoD programs; the MSO is in the process of adding mid-roll capabilities.

Comcast's commitment in this area isn't a huge surprise. It's becoming a priority for the entire cable industry. Canoe Ventures LLC , the cross-MSO joint venture, recently announced it is laying off most of its people, closing its New York office, and shutting down its interactive ad product in favor of a dynamic VoD advertising strategy. (See Cable's Canoe Sinks Interactive Ad Business .)

Although Canoe is getting out of interactive advertising, it's not game-over for the cable industry at large. Much is underway at the local level. Comcast Spotlight , the MSO's local advertising arm, has conducted more than 1,700 interactive campaigns that have delivered more than 4.5 billion impressions, Jenckes said.

And this work isn't limited to VoD content delivered to the set-top. Comcast is also inserting ads into the TV Everywhere content it sends over-the-top to devices such as the iPad and, soon, the Xbox 360 gaming console.

— Jeff Baumgartner, Site Editor, Light Reading Cable

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
User Rank: Light Beer
12/5/2012 | 5:40:54 PM
re: Comcast Ready to Mine for VoD Gold

One player in this space told me he figured dynamic ad insertion could be in front 30-40 million households industry-wide by year end. Maybe then Canoe can broker deals with national advertisers? Or having left Madison Ave, is that still part of what their plan?

User Rank: Blogger
12/5/2012 | 5:40:52 PM
re: Comcast Ready to Mine for VoD Gold

If DAI is so fantastic, why has it taken the industry years to get it off the ground? Cable programmers wanted to implement VOD advertising years ago. 

User Rank: Light Beer
12/5/2012 | 5:40:50 PM
re: Comcast Ready to Mine for VoD Gold

Good question. I'd heard in 2010 that it had taken that long for advertising to get onto the 'top 5' list of things for MSOs to do. Why so long? Slow-moving MSOs, an ad culture averse to change and VOD views that hadn't yet scaled, I'm guessing. If VOD makes it into the next round of upfront ad buying, that would be a sign that the opportunity cost of ignoring VOD has become too high. But the idea that Netflix could get onto set-top boxes, that Jeff is reporting on elsewhere, could be yet another reason/excuse to hesitate.

Educational Resources
sponsor supplied content
Educational Resources Archive
From The Founder
The comms industry is rallying to the cause of open, independent interoperability testing.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
LRTV Interviews
Top Tips for FTTH Operators

10|8|15   |   02:26   |   (0) comments

At Gigabit Europe 2015, Ventura Team co-founder Richard Jones talks about some of the key business case considerations for FTTH network operators.
LRTV Interviews
M-net Calls for FTTx Unity

10|8|15   |   03:45   |   (0) comments

At the Gigabit Europe event, Jörn Schoof from M-net, the Munich city network operator, calls for industry collaboration on fiber broadband access rollouts.
LRTV Documentaries
The Business Case Challenge for NFV

10|7|15   |   03:47   |   (0) comments

Virtual CPE is one of the early success stories for network functions virtualization, as service providers are finding flexible, programmable CPE solves a lot of logistics problems and reduces their cost. But even here, Masergy Communications faced a business case challenge, says CTO Tim Naramore.
LRTV Interviews
JT Offers Some Gigabit Lessons

10|7|15   |   4:08   |   (1) comment

Barna Kutvolgyi, managing director, Global Consumer, at JT, the incumbent operator on the island of Jersey, talks about how other service providers can learn from his company's gigabit broadband rollout experiences.
LRTV Interviews
AT&T's Chiosi on the Potential of Open Source

10|6|15   |   06:27   |   (0) comments

AT&T Distinguished Network Architect Margaret T. Chiosi talks to Light Reading's Carol Wilson about the potential for open source technology to liberate communications service providers.
LRTV Interviews
Network Security in a Gigabit World

10|6|15   |   05:52   |   (0) comments

Masergy's James Harrison talks about some of the network security and data center issues network operators need to consider as they expand their broadband services portfolios.
LRTV Documentaries
Telefónica: In Search of Virtual Simplicity

10|5|15   |   07:30   |   (0) comments

Francisco-Javier Ramon Salguero, head of Telefónica's NFV initiative, admits virtualization initially means greater complexity, but with the right abstraction layer, it is possible to create a services-driven network architecture. He explains how Telefónica's current trials and initiatives are aimed at doing that, and what his company and other carriers need to ...
LRTV Interviews
Gigabit Europe Takeaways

10|5|15   |   03:47   |   (0) comments

Participants from the inaugural Gigabit Europe event in Munich share their key takeaways from the conference.
Women in Comms Introduction Videos
Intel Urges Women to Take Advantage of Their Seat at the Table

10|5|15   |   4:27   |   (1) comment

Have inclusive and constructive conversations, attach a bigger meaning to your work and get involved in the cause, Intel's Monique Hayward advises women in comms.
LRTV Interviews
BT Updates on Plans

10|2|15   |   03:16   |   (2) comments

Peter Bell, CIO at Openreach, the access network division at UK incumbent BT, provides an update on the operator's trials and how Openreach is planning to deploy the broadband technology in its street cabinets.
Telecom Innovators Video Showcase
Sonus Shakes Up SD-WAN

10|2|15   |   7:22   |   (0) comments

Sonus CTO Kevin Riley sat down with Light Reading to discuss the trajectory of the company, its SDN ambitions and why Sonus is taking a market-disruptive approve to SD-WAN.
LRTV Interviews
CityFibre's Gigabit Vision

10|1|15   |   03:18   |   (1) comment

Mark Collins, director of Strategy & Public Affairs at competitive UK city network operator CityFibre, talks about his company's plans to help build Gigabit Cities.
Upcoming Live Events
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
December 2, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Network appliances have a strong value proposition in today's networks and will continue to do so in the NFV and SDN-enabled networks of tomorrow.
Hot Topics
Eurobites: Dunroamin'
Paul Rainford, Assistant Editor, Europe, 10/2/2015
M&A Speculation Swirls Around Juniper
Ray Le Maistre, Editor-in-chief, 10/6/2015
Cisco's Chambers Rules Out Political Bid
Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/6/2015
Infinera Fleshes Out Its Metro 100G Story
Ray Le Maistre, Editor-in-chief, 10/7/2015
AT&T Gets Green Light for VoWiFi
Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 10/7/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
With so many new and exciting communications technologies now under development, it's easy to get caught up in the industry's escalating hype cycle. That's why the ...
Last week saw a big day in the 15-year history of Light Reading when Editor-in-Chief Ray Le Maistre and I were invited to interview the Deputy Chairman and Rotating ...
Cats with Phones
"What?! I'm on with Finisar about their stock price tanking" Click Here