Light Reading
MSO-led JV to lay off 120 employees, shut down its NYC office and change course to focus solely on cross-platform VoD ad insertion

Cable's Canoe Sinks Interactive Ad Business

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
2/22/2012
50%
50%

Canoe Ventures LLC has confirmed that it will capsize its interactive advertising business and lay off 120 employees as the MSO-led joint venture alters its strategy to focus solely on inserting ads dynamically into on-demand programing delivered to set-tops and IP-connected devices such as tablets, PCs and smartphones.

Following decisions made over the last couple of months, Canoe is also shutting down its New York City office, and its remaining 30 to 35 employees will be based at the venture's operations in Denver. Multichannel News reported the decision Wednesday afternoon.

Canoe CTO Joel Hassell will become CEO of the revised Canoe. The rest of Canoe's senior leadership team, including CEO Kathy Timko and Chief Product Officer Arthur Orduna, will be leaving. An official said the Canoe board is unchanged and that the MSOs bankrolling Canoe -- Comcast Corp. (Nasdaq: CMCSA, CMCSK), Time Warner Cable Inc. (NYSE: TWC), Charter Communications Inc. , Cox Communications Inc. and Cablevision Systems Corp. (NYSE: CVC) -- "remain committed to the venture."

Canoe embarked in 2007 and pursued targeted advertising before changing to focus on interactive ads powered by Enhanced TV Binary Interchange Format (EBIF), a software platform that could run on any digital cable set-top. Canoe's MSO partners eventually had EBIF running on 25 million set-top boxes and had been running "request for information" (RFI) campaigns with eight national cable networks, but apparently could not get enough advertisers on board to make the effort pay off. It's not known how many dollars have been spent on Canoe so far.

The revised business focus is "in direct response to what the marketplace told us they wanted," the Canoe official said.

Canoe hasn't set a timeline for the debut of its latest initiative, but the J.V. "was already well down the road toward the launch of national dynamic ad insertion in 2012," Hassell said, in a statement.

Why this matters
While the decision doesn't affect the interactive ad business of individual MSOs, it does deal a significant blow to cable's national interactive advertising efforts. With that effort now run aground, what's left of Canoe will try to help MSOs make money selling ads that can be inserted into set-top-based VoD programming as well as TV Everywhere programming that's delivered over the top.

Dynamic ad insertion on VoD has also had its share of fits and stops, but recent rollouts by Comcast and other MSOs have shown that the platform may be ready to scale and expand as TV Everywhere becomes an increasingly important piece of cable's video arsenal. But given Canoe's flighty history on product focus, cable will need to convince advertisers that the industry will indeed stick with this revised strategy. (See Comcast Signals New Ad Era for VoD.)

For more
Catch up on Canoe's travels through seas both calm and stormy.



— Jeff Baumgartner, Site Editor, Light Reading Cable

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
craigleddy
50%
50%
craigleddy,
User Rank: Blogger
12/5/2012 | 5:41:47 PM
re: Cable's Canoe Sinks Interactive Ad Business


We will analyze the reasons and consequences of the Canoe decision in the days ahead, but for now my heart goes out to the people who worked so hard to try to pull off this mission. Canoe assembled some great industry talent (Arthur Orduna, Kathy Timko, Vicki Lins, Jim Turner and more), backed by a dedicated support staff. If you're looking for talent, give them a look.            

AESerm
50%
50%
AESerm,
User Rank: Light Beer
12/5/2012 | 5:41:44 PM
re: Cable's Canoe Sinks Interactive Ad Business


Dynamic ad insertion for VOD still looks viable, whether done by individual MSOs or with what remains of a united front. And that's not just a U.S. thing. But there were early doubts about Canoe's larger vision. Here's one contrarian essay from four years ago.

Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 5:41:39 PM
re: Cable's Canoe Sinks Interactive Ad Business


Suppose I might add Polycipher to that list... another JV that didn't pan out as expected, though for different reasons, of course.  But it's interesting that dynamic VoD ad insertion is now the ticket.. cable's almost forced to make that work to get the biz model underneath TV Everywhere shored up while still trying to slowdown ad revenue they are losing to other OTT services.  JB

Flash Poll
LRTV Custom TV
Distributed NFV-Based Business Services by RAD

7|18|14   |   5:38   |   (0) comments


With the ETSI-approved Distributed NFV PoC running in the background, RAD's CEO, Dror Bin, talks about why D-NFV makes compelling sense for service providers, and about the dollars and cents RAD is putting behind D-NFV.
LRTV Custom TV
MRV Accelerating Packet Optical Convergence

7|15|14   |   6:06   |   (0) comments


Giving you network insight to make your network smarter.
LRTV Custom TV
NFV-Enabled Ethernet for Generating New Revenues

7|15|14   |   5:49   |   (0) comments


Cyan's Planet Orchestrate allows service providers and their end-customers to activate software-based capabilities such as firewalls and encryption on top of existing Ethernet services in just minutes.
LRTV Custom TV
Symkloud NVF-Ready Video Transcoding, Big Data

7|9|14   |   3:41   |   (0) comments


Kontron and ISV partner Vantrix demonstrate high-performance video transcoding and data analytic solutions on same 2U standard platform that is ready for SDN and NFV deployments made by mobile, cable and cloud operators.
LRTV Huawei Video Resource Center
The Evolving Role of Hybrid Video for Competitive Success

7|4|14   |   4:09   |   (0) comments


At Huawei's Global Analysts Summit in Shenzhen, China, Steven C. Hawley from TV Strategies speaks to us about the evolving role of hybrid video for competitive success.
LRTV Huawei Video Resource Center
How CSPs Leverage Big Data in the Digital Economy

7|4|14   |   4:48   |   (2) comments


Justin van der Lande from Analysys Mason shares with us his views on how telecom operators can leverage customer asset monetization with big data. His discusses the current status of big data applications and the challenges and opportunities for telecom operators in the digital economy era.
LRTV Huawei Video Resource Center
Accelerator for Digital Business Future Oriented BSS

7|4|14   |   3:08   |   (0) comments


Mobile and internet are becoming intertwined; IT and CT are integrating; and leading CSPs have begun to transform to information service and entertainment providers. How should the BSS system evolve to enable this transformation? Karl Whitelock, an analyst at Frost & Sullivan, shares his views.
LRTV Huawei Video Resource Center
Orange Tunisia Discusses Multi-Band Antenna With EasyRET Solution

7|4|14   |   2:45   |   (0) comments


As new site acquisition becomes more difficult, Orange Tunisia has requested multi-band antenna to support UMTS and LTE innovation. Some things considered include reducing the cost of antenna maintenance and having high reliability antenna and EasyRET solution.
LRTV Huawei Video Resource Center
How Telefonica Spain Considers Antenna Selection for LTE Network Deployment

7|4|14   |   2:19   |   (0) comments


Tony Conlan, Global CTO of RAN, Telefonica, shares his opinion on antennas in LTE network deployment: Tower space is the premier requirement on antennas; reliability is important to reduce OPEX; and EasyRET solution will be helpful for antenna maintenance.
LRTV Huawei Video Resource Center
dtac Thailand: Multi-band Antenna & Capacity Solution for a Better MBB Experience

7|3|14   |   3:45   |   (0) comments


With the development of LTE, tower space and load are limited for new antenna, but users' capacity requirements are growing fast. To provide a better MBB experience, Panya Vechbanyongratana from dtac Thailand shared his experiences and antenna requirements.
LRTV Documentaries
BTE Panel: Network of the Future

7|2|14   |   1:00:57   |   (0) comments


Full-length video of the ATIS Panel Discussion: 'How Far Away Is the Network of the Future & What Does It Look Like?' from the Big Telecom Event (BTE) in Chicago.
LRTV Custom TV
Redknee Supports BH Telecom With Redknee Unified

7|2|14   |   6.14   |   (0) comments


Lucas Skoczkowski, CEO of Redknee, and Amir Orucevic, Director BH Mobile, discuss how the benefits of the Redknee Unified suite of products provide BH Telecom with innovation and leadership in the market, with the flexibility to launch services faster to the market, provide new and compelling promotions and pricing models, and combine services in order to drive ...
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
October 29, 2014, New York City
November 11, 2014, Atlanta, GA
December 9-10, 2014, Reykjavik, Iceland
Infographics
Allot's latest MobileTrends Charging Report shows that value-based pricing plans are up from 35% in 2011 to 85% in 2014.
Hot Topics
Microsoft to Axe 12,500 Ex-Nokia Employees
Sarah Reedy, Senior Editor, 7/17/2014
GM: 10 Car Models on Road With AT&T's LTE
Dan Jones, Mobile Editor, 7/18/2014
Have IBM & Apple Partnered Their Way to Cloud Leadership?
Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/18/2014
The Municipal Menace?
Jason Meyers, Senior Editor, Utility Communications/IoT, 7/22/2014
FiOS: Slower Sub Growth, Faster Upload Speeds
Alan Breznick, Cable/Video Practice Leader, 7/22/2014
Like Us on Facebook
Twitter Feed