Light Reading

Bright House Launches VOD Ad Insertion

Alan Breznick
7/29/2014
50%
50%

Plunging into a potentially lucrative market for cable operators, Bright House Networks has become the latest major North American MSO to start inserting ads dynamically into video-on-demand (VoD) programming.

Bright House Networks , the sixth biggest US MSO with more than 2 million video subscribers, has started rolling out dynamic ad insertion (DAI) on VoD in its Indianapolis market. Although Bright House hasn't said where it might go next, it is expected to expand the DAI deployment nationally. Besides Indianapolis, the MSO's other big markets include Orlando and Tampa, Fla., Birmingham, Ala., and Detroit.

Like three of its large counterparts, Bright House is relying on [complink 10912|BlackArrow Inc.}'s ad insertion solution to manage the VOD DAI deployment. BlackArrow, which has carved out a nice niche for itself in this category, offers a centralized, real-time ad solution designed to unify campaign management, advertising reports, and ad executive across all TV platforms.

BlackArrow is also working with the other three major MSOs -- Comcast Corp. (Nasdaq: CMCSA, CMCSK), Time Warner Cable Inc. (NYSE: TWC), and Rogers Communications Inc. (Toronto: RCI). Comcast, TW Cable, and Bright House are also all members of Canoe Ventures LLC , the four-MSO consortium driving VOD advertising in the US. The other large MSO participating in Canoe is Cox Communications Inc. , which has not yet rolled out DAI but is expected to do so later this year.

"We started out with VOD as low-hanging fruit for the large operators," Chris Hock, SVP of marketing and partnerships for BlackArrow, told Light Reading. "This is a sign that the market is moving away from early adopters." With the addition of Bright House, BlackArrow will extend its VOD ad deployment base to nearly 32 million cable homes.

The move by Bright House comes as the VOD ad business finally appears to be taking off after years of stumbling. In May, for example, the participating cable operators and 40 programming networks teamed up to conduct an average of 230 VOD DAI campaigns per week, according to the latest statistics from Canoe. Further, Canoe notes, more than 3 billion ads have been inserted in free cable VOD programming through May, already more than the 2 billion ads inserted through all of 2013.


For more of Light Reading's coverage of the emerging VOD ad business, visit our video services content channel.


With a fourth major North American MSO now under its belt, BlackArrow is seeking to extend its VOD ad reach across the Atlantic to Western Europe. Hock said the firm is also eyeing other pay-TV providers, such as telco video operators.

In addition, BlackArrow is looking to sign up more cable operators and other pay-TV providers for its ad solution for live, linear TV programming delivered over IP. So far, one major MSO, TW Cable, has started making use of that product, known as BlackArrow Linear. (See BlackArrow Targets Live TV Ads.)

— Alan Breznick, Cable/Video Practice Leader, Light Reading

(7)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
thebulk
50%
50%
thebulk,
User Rank: Light Sabre
8/4/2014 | 3:26:30 AM
Re: Show me the money
Yes, we ignor most of it, but I think much of it is just passive, as long as its there in front of someone its having some impact. 
smkinoshita
50%
50%
smkinoshita,
User Rank: Light Sabre
7/31/2014 | 11:30:12 PM
Re: Show me the money
Ahh -- but if the user is going to ignore the ads, then the person paying for the advertising is just wasting the money.  It used to be the saying that "I know half my advertising is wasted, but I don't know which half" -- since we're advertising more than ever, I think the wasted number is much higher since the audience is being trained to ignore the ads.

It depends on what's being advertised of course, but in my experience I see a lot of marketers just using the "Alcohol and guessing" approach, and it doesn't really pay off.  I've done work crunching the numbers for a few businesses.  Unless the advertising techniques advance all the new tech available to it won't help.
thebulk
50%
50%
thebulk,
User Rank: Light Sabre
7/31/2014 | 2:56:12 PM
Re: Show me the money
That might be the best time for the user, but most likely not the best time for the person paying for the advertising. 
smkinoshita
50%
50%
smkinoshita,
User Rank: Light Sabre
7/31/2014 | 1:30:06 PM
Re: Show me the money
Those ads are terrible because they're stuck in the same tired "interruptive" method that advertising's been using for ages.  All it does is train people to ignore it, and if they get clicked it's by accident.  

Timing and context is everything.  The best time to insert an ad is when the person hits PAUSE.  At that point, the viewer is saying "I need to stop and do something" and in which case they're already interrupting their own viewing.  Then when they come back, the ad is the first thing they see and since they weren't watching at the time it's not like the ad did the interrupting.
thebulk
50%
50%
thebulk,
User Rank: Light Sabre
7/30/2014 | 3:15:38 PM
Re: Show me the money
Personally I think ad insertion would be great if it worked the say YouTube does the overlay ads. That would probably be the best model for cable to go with. 
smkinoshita
50%
50%
smkinoshita,
User Rank: Light Sabre
7/30/2014 | 2:37:23 PM
Re: Show me the money
I don't see much change happening personally; it's the same thing that always happen.  New advertising technology used the with the same old, tired, uninteresting and poorly targeted interruptive ads.

 
thebulk
50%
50%
thebulk,
User Rank: Light Sabre
7/29/2014 | 1:39:58 PM
Show me the money
No doubt this is revenue that cable companies want, and I am sure they will find even more ways to insert ads, some we may not even relize we are being shown. For me the key to VOD ad insertion has aways been to make it seemless, I think the MSOs are trying to make that the case. 
Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
Anshul Sadana answers questions from Steve Saunders, Light Reading's founder and CEO, about Arista's CloudVision, a global cloud network controller for workload orchestration and workflow automation delivering a turnkey solution for cloud networking.
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
LRTV Huawei Video Resource Center
Huawei ONS Product Demo

8|3|15   |   6:01   |   (0) comments


Huawei shows at Open Networking Summit 2015 in Santa Clara how its SDN and NFV solutions embrace openness.
LRTV Custom TV
End-User or Enterprise Benefits to the New IP

7|30|15   |   04:27   |   (1) comment


Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
LRTV Custom TV
Network Visibility & the New IP

7|30|15   |   02:23   |   (0) comments


Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
Between the CEOs
Video Exclusive With Basil Alwan, Alcatel-Lucent

7|24|15   |   26:44   |   (5) comments


Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
LRTV Custom TV
VDF: Enable the Financial With Mobile Money

7|20|15   |   06:53   |   (0) comments


Ian Ravenscroft discusses how operators can expand to occupy the entire digital services value chain through service innovation.
LRTV Custom TV
Telefónica on OSS Transformation

7|20|15   |   06:01   |   (0) comments


Jose Gonzales discusses the details of Telefónica's operation transformation program.
LRTV Custom TV
Judi Achmadi on Huawei's Cloud Storage Solution

7|20|15   |   03:33   |   (0) comments


Judi discusses the key business goals of TelekomSigma's public cloud service and how Huawei's solution helps them address challenges.
LRTV Custom TV
KPN Enlightening Digital Business & IT Transformation

7|20|15   |   06:19   |   (0) comments


Rob de Beer discusses the changes that operators need to make with service innovation now coming from the Internet world.
LRTV Custom TV
Stratus Telco-Grade Cloud Solutions & NFV

7|20|15   |   07:34   |   (0) comments


Ali Kafel from Stratus Technologies addresses high-availability concerns within the telco industry with a solution that enables telcos to provide high-availability and stateful fault-tolerance using a software-based approach.
LRTV Documentaries
The Six Million Dollar Business Man

7|20|15   |   01:52   |   (0) comments


Steve Saunders, publisher. A man barely alive after an acquisition malfunction imploded the company he founded. Gentlemen, we can rebuild Light Reading. Better, faster, stronger.
Between the CEOs
CEO Chat With Anukool Lakhina, Guavus

7|20|15   |   38:51   |   (1) comment


Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
LRTV Custom TV
IBM's Flash Storage With Intel QuickAssist

7|20|15   |   03:18   |   (0) comments


Intel's Bev Crair and IBM's Eric Herzog discuss how IBM's V9000 Flash Storage System has helped customers around the world. Featuring real-time compression powered by Intel QuickAssist Technology, the V9000 is a next-gen flash storage solution.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
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
All Upcoming Live Events
Infographics
To keep up with consumers' increasing digital lifestyles, an IT system and operating model overhaul is required using a modern BSS, IES and analytics.
Hot Topics
Eurobites: Nokia Seals HERE Sale
Paul Rainford, Assistant Editor, Europe, 8/3/2015
Verizon Small Cells Ready to Rock in Chicago
Sarah Thomas, Editorial Operations Director, 7/31/2015
Cable Feuds With Senate Dems Over STBs
Alan Breznick, Cable/Video Practice Leader, 7/31/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
I was pleasantly surprised when Ericsson recently agreed to let me interview its CEO, Hans Vestberg. Traditionally, mega-companies like Ericsson (or Cisco) have kept ...
Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
Cats with Phones
Comes With Free Phone Stand Click Here
Who says cats don't have any skills?