& cplSiteName &

RGB Takes On Terayon

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
5/21/2007
50%
50%

RGB Networks Inc. has launched a suite of "digital overlay" applications for its Broadcast Network Processor (BNP) platform that will allow cable operators and their advertisers to create and change targeted spots in real-time and in the digital domain.

According to RGB, the app can directly overlay text, graphics, and motion video onto more than 500 TV ads simultaneously. Costs linked to the creation or changing of ads are greatly reduced because everything is digital and done on top of the program being played out.

U.S. operators generated $4.3 billion in revenues from local advertising in 2006, according to Kagan Research LLC . Those same operators are now starting to explore how targeted ads can push that figure higher.

Dynamic and targeted ad insertion "is already on the list of every top operator we talk to," says Ramin Farassat, RGB's vice president of product marketing.

The capability requires a software upgrade to the BNP, a device that operators are using to process and groom digital video, including switched digital video (SDV). Each BNP can support up to 512 streams.

In terms of how it could be applied, RGB's system can insert text and grahics, or embed an image directly onto the digital stream. In the early going, some customers are testing it to send Emergency Alert System (EAS) text messages that can be customized for specific ad zones.



RGB and an undisclosed MSO partner are also working on an "enhanced television" overlay application that would enable viewers to request more information about a product being advertised by clicking an on-screen icon. The concept is similar to advertising "telescoping" in the interactive television (iTV) arena, but the information would be supplied on-the-fly rather than pre-designed by a broadcaster.

Although the product is new to RGB, it's not the first to reach the market. In April, Terayon Communication Systems Inc. enhanced its flagship CherryPicker digital video processing platform with a range of similar applications, including those that let operators insert localized graphics and ads into digital programming. (See Terayon Updates Its CherryPicker .)

Motorola Inc. (NYSE: MOT) is in the process of acquiring Terayon for about $140 million in a deal announced late last month. (See Motorola to Buy Terayon for $140M.)

Motorola has been reselling RGB's BNP technology, but, due to the product overlap, will stop that practice once its acquisition of Terayon is complete. Motorola, however, will continue to offer RGB's Simulcast Edge Processor (SEP), which still represents about 70 percent of RGB's shipments.

Farassat claims RGB can differentiate itself from Terayon on density and on a cost-per-stream basis. He says RGB's platform enables its digital apps for "tens of dollars per stream," versus thousands of dollars per stream for its competitor. RGB's enhancement is made through software. Terayon has said an upgrade for its application system requires a new DSP processing card for the CherryPicker.

Manipulating and altering spots in the digital domain will open up the door to more targeted advertisements, and will help to keep ad dollars tied to the TV screen, even as advertising budgets continue to gravitate toward Internet advertising, says Farassat.

Smaller advertisers can also participate in the targeted model, he says, because they can create customized versions of an ad quickly and more affordably than they would if they had to recreate and produce everything from scratch several times over.

RGB, with 90 employees, had $20 million in revenues last year, and expects to double that in 2007.

Although RGB has cut its teeth on the cable industry, and has deployments with every major U.S. and Canadian MSO, the company has also sought success in the telco sector, picking up a deal with Verizon Communications Inc. (NYSE: VZ) along the way.

The fate of privately held RGB has been a hot topic ever since Motorola agreed to snap up Terayon last month. While RGB has inisisted it will seek an initial public offering before weighing sale opportunities, it is considered one of the next coveted aquisition targets. It's also well known in cable circles that Motorola and Cisco Systems Inc. (Nasdaq: CSCO) are pitted in a positional war and looking to expand their portfolios through acquisition and, therefore, prevent valuable startups and their assets from falling into the other's hands. (See RGB: Ripe for Aquisition? )

— Jeff Baumgartner, Site Editor, Cable Digital News

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Educational Resources
sponsor supplied content
Educational Resources Archive
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Documentaries
Twilight Star Authors AI Paper

1|24|17   |   00:46   |   (0) comments


Actress Kristen Stewart, best known for starring in the Twilight movies, has co-authored an academic paper on the use of artificial intelligence (AI) in a short film she has directed.
LRTV Documentaries
Apple, Qualcomm Lock Horns Over Licensing

1|24|17   |   01:07   |   (0) comments


Industry giants clash over licensing fees.
LRTV Interviews
Heavy Reading: The Web-Scale View

1|18|17   |     |   (0) comments


At Light Reading's 2020 Vision Executive Summit in Rome, Heavy Reading's former chief analyst Patrick Donegan shared insight from the recent web-scale operators report, which featured research on how web-scale operators view the market, the best web-scale companies to ...
LRTV Custom TV
Cisco's Cloud Scale Networking: Automation, Virtualization & Simplification

1|18|17   |     |   (1) comment


Cisco's Sanjeev Mervana outlines the latest innovations in networking technology at CES 2017 in Las Vegas.
LRTV Custom TV
ADVA Talks Innovation & the Future of Networking

1|17|17   |     |   (0) comments


Ray Le Maistre and Christoph Glingener, CTO of ADVA Optical Networking, discuss the current state of the industry, cooperation and collaboration, open innovation and the future of networking.
LRTV Custom TV
Cisco's Infinite Video Platform

1|17|17   |     |   (0) comments


Cisco's Infinite Video Platform allows service providers to deliver broadcast-quality video over IP networks. Infinite video supports many devices, from 4K TVs to tablets to game consoles. Join Cisco's Rajeev Raman for a brief tour and live demo.
LRTV Interviews
Masergy: Ability to Adapt Key for NFV

1|16|17   |   6:40   |   (0) comments


Speaking at Light Reading's 2020 Vision in Rome, Masergy's VP, Global Technology, Ray Watson, said agility is key to providing the mix and match NFV-based services that are driving business for the managed service provider today.
LRTV Interviews
Equinix: The Data Explosion

1|13|17   |   4:16   |   (0) comments


At Light Reading's 2020 Vision in Rome, Eric Schwartz, president of EMEA, Equinix, talked about how Equinix is helping its customers manage the influx of data today, and how it's preparing for a future filled with millions of connected IoT devices.
LRTV Interviews
Heavy Reading: The Changing Data Center Landscape

1|12|17   |   6:05   |   (1) comment


At Light Reading's 2020 Vision event in Rome, Heavy Reading's Senior Analyst Roz Roseboro talks about how virtualization is impacting data center evolution and how that evolution is affecting the relationship between service providers, data center operators and public cloud providers.
LRTV Interviews
Boingo: Prepping for Millions of Devices

1|12|17   |   5:07   |   (2) comments


At Light Reading's 2020 Vision in Rome, Boingo's CTO Derek Peterson discusses how wireless operators will address the needs of low-bandwidth and high-bandwidth apps at the same time, the need for more MHz, the impact of IoT and more.
LRTV Interviews
Comcast Shows Off Gig Gateway at CES

1|11|17   |     |   (1) comment


With its largest presence at CES in years, Comcast took the wraps off its long-awaited gigabit gateway and a new platform for managing the home WiFi network. Light Reading Senior Editor Mari Silbey sat down with EVP Chris Satchell to discuss the latest Comcast advance, and met with VP of Product Strategy and Development Andrea Peiro to walk through a demo of the ...
LRTV Interviews
Colt: End-to-End Key for 2017

1|10|17   |   6:21   |   (0) comments


At Light Reading's 2020 Vision Executive Summit in Rome, Nico Fischbach of Colt said having a multi-carrier, end-to-end service proposition is going to be key for 2017 -- and SD-WAN is instrumental in making it happen.
Upcoming Live Events
March 21-22, 2017, The Curtis Hotel, Denver, CO
May 15-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
A Women in Comms Glossary
Sarah Thomas, Director, Women in Comms, 1/18/2017
Is Cable One Beefing Up for Slaughter?
Alan Breznick, Cable/Video Practice Leader, Light Reading, 1/20/2017
Google Security Lessons for IT
Curtis Franklin, Security Editor, 1/18/2017
Nokia CTO: 2017 Is the Year 5G Gets in the Field
Dan Jones, Mobile Editor, 1/19/2017
Do Women-Only Co-Working Spaces Work for Women?
Sarah Thomas, Director, Women in Comms, 1/24/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading founder and CEO Steve Saunders chats with Sportlogiq CEO Craig Buntin about sports data analysis.
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Animals with Phones
You've Heard of Slow Food? Click Here
This is slow tech.
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.