Can the Elimination of Ad Skipping Save VoD?

Dean Denhart thinks one way to draw media buyers to cable video-on-demand (VoD) may involve the disablement of the fast-forward function in 30-minute programs, and the delivery of fewer but more targeted ads.

Dean Denhart

The CEO of advanced ad firm BlackArrow Inc. has technology that NBC, Fox and other cable and broadcast networks can use to disable the fast-forward function, and he is teaming up with several other industry players to test how cable subscribers respond when they can't skip commercials.

Comcast Corp. (Nasdaq: CMCSA, CMCSK), Time Warner Cable Inc. (NYSE: TWC) and other MSOs with ties to BlackArrow have typically only run one pre-roll ad in VoD programs. BlackArrow recently launched a product that allows pay-TV providers to insert targeted mid-roll ads in on-demand shows, similar to the strategy used by Hulu LLC and other Web video providers. In an interview with Light Reading Cable, Denhart predicts that the market for cable VoD advertising will heat up toward the end of 2011.

Contents: — Steve Donohue, Special to Light Reading Cable

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IRM 12/5/2012 | 5:02:21 PM
re: Can the Elimination of Ad Skipping Save VoD?

If VoD needs saving, I'm betting that adding further limitations (like disabling FF) wont do the trick. 

Jeff Baumgartner 12/5/2012 | 5:02:21 PM
re: Can the Elimination of Ad Skipping Save VoD?

Transactional VoD needs its own help (a better guide could help) ,but "free" ad-supported cable VoD needs a serious jolt. JB

fanfare 12/5/2012 | 5:02:19 PM
re: Can the Elimination of Ad Skipping Save VoD?

They can do that but I believe they will lose audience.  In todays world, I for one will not sit through commercials.  If watching content means I have to watch commercials, I'll find something else to do with my time.

This isn't 1960 and successful working Americans don't have time to sit through Geritol commercials.  There are too many other options for video content entertainment in todays world, and the ad industry can either adapt or go the way of the music industry. Like most Americans, I'm willing to put up with some commercial activity in my life, but when it comes to hijacking 5-10 minutes of my time every 15 minutes ... forget it.  Computers have already dug into television margins, if they want to kill the rest of their market ... they can keep it.

Cooper10 12/5/2012 | 5:02:17 PM
re: Can the Elimination of Ad Skipping Save VoD?

Ad insertion will increasingly find its way not only into VOD, but likely also DVR recordings.  Ad revenue is too integral to the content ecosystem for it not to happen, and consumers are largely not willing to pay what it would take to finance production of high-quality content without also having an advertising revenue stream.  The good news is that technology will likely advance to the point where a consumer can choose - they can pay a premium to watch content commercial free (which most will not do), or they can accept advertising as part of helping reduce their direct costs.

jimcomp1 12/5/2012 | 5:02:09 PM
re: Can the Elimination of Ad Skipping Save VoD?

The quantity of commercials on regular TV has reached the point that I won't watch if I can't skip them. As for inserting commercials in material I pay for, you know where you can stick them.

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