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

Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Huawei Video Resource Center
Interview With Rick Talbot, Principal Analyst, Current Analysis

10|31|14   |   2:12   |   (0) comments


At the NFV Open Cloud Forum 2014, Rick Talbot shared his positive feedback about the holistic and open approach that Huawei adopts for SDN and NFV. He also found the open sharing at the event valuable as it features different perspectives from Huawei experts, telecom operators, industry analysts as well as security experts.
LRTV Huawei Video Resource Center
Interview With David Snow, Principal Analyst, Current Analysis

10|31|14   |   2:24   |   (0) comments


David Snow talked about his understanding of Huawei and its SoftCOM strategy at the NFV Open Cloud Forum 2014, saying that Huawei's wide approach combining IT and CT expertise, introducing big data and analytics into solutions and contributing to the OpenStack community particularly resonate with him and make the company stand out in the industry.
LRTV Huawei Video Resource Center
Interview With Roz Roseboro, Senior Analyst, Heavy Reading

10|31|14   |   3:13   |   (0) comments


Roz Roseboro commented on Huawei's data center capabilities and NFV solutions at the NFV Open Cloud Forum 2014, saying that in addition to covering all three key domains of compute, storage and networking, the company also emphasizes the importance of management capabilities and professional services, which are essential in making NFV a reality.
LRTV Huawei Video Resource Center
Interview With Michael Howard, Co-founder & Principal Analyst, Infonetics Research

10|31|14   |   5:25   |   (0) comments


Michael Howard talked about SDN, NFV, and OpenStack adoption at Huawei's NFV Open Cloud Forum 2014. Particularly, he pointed out that Virtual Enterprise CPE is the top NFV use case that operators plan to invest in over 2014 and 2015 to deliver new enterprise services through virtualized functions.
LRTV Huawei Video Resource Center
Interview With Jerry Caron, Senior Vice President, Current Analysis

10|31|14   |   3:11   |   (0) comments


At Huawei's NFV Open Cloud Forum 2014, Jerry Caron from Current Analysis said that orchestration and management are key to realizing SDN and NFV for global carriers, and the approach that Huawei is taking, with its FusionSphere Cloud OS at the core, is in the right direction to address the challenges.
LRTV Documentaries
Broadband Battles

10|31|14   |   01:39   |   (0) comments


This year's Broadband World Forum featured a number of show floor battles focused on access gear, components and coffee.
Jonestown
Mobile Backhaul: Going to the Dark Side?

10|30|14   |   2:26   |   (1) comment


Heavy Reading's Patrick Donegan shares his view on a dark trend that bubbled up at Light Reading's annual backhaul conference in NYC.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With CEO of SwitchCom

10|30|14   |   4:13   |   (0) comments


SwitchCom, an IT company based in Angola, recommends a variety of Huawei solutions and hardware to their customers in the energy industry.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Ethiopia's Ministry of Water Irrigation & Energy

10|30|14   |   4:08   |   (0) comments


Gosaye Mengistie of Ethiopia's Ministry of Water Irrigation & Energy discusses the collaboration with Huawei in that country.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Dongfang Electronics Corporation

10|30|14   |   5:46   |   (0) comments


Dongfang Electronics Corporation, headquartered in Chengdu, China, is one of China's largest manufacturers of power generators and contractors of power station projects.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Zimbabwe's Customers

10|30|14   |   3:31   |   (0) comments


Representatives of Zimbabwe's Ministry of Power and Development discuss the energy needs of their country as well as new areas of improvement due to enhanced ICT capabilities.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Colbún Chile

10|30|14   |   4:29   |   (0) comments


In Chile, an aging energy infrastructure was in dire need of a modern update. Claudio Valenzuela of Colbún discusses how Huawei's ICT solutions continue to provide crucial information to improve the grid and how an in-country engineer is a cricial asset.
Upcoming Live Events
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
May 6, 2015, McCormick Convention Center, Chicago, IL
May 30, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Microsoft's Skype Embraces WebRTC on IE
Sarah Reedy, Senior Editor, 10/27/2014
FTC Slaps AT&T With Throttling Lawsuit
Sarah Reedy, Senior Editor, 10/28/2014
Wheeler Gets Down With OTT
Mari Silbey, Independent Technology Editor, 10/29/2014
China's MVNOs Hit the Wall
Robert Clark, 10/27/2014
Let's Not Kill SDN & NFV With Silos
Francois Locoh-Donou, Senior VP, Global Products Group, Ciena, 10/28/2014
Like Us on Facebook
Twitter Feed