Dynamic ad insertion appears ready to finally become a factor in the video-on-demand arena, as Comcast (Nasdaq: CMCSA) and NBCUniversal said they agreed to start inserting ads in VoD (video on demand) content.
Ad insertion technology has been around forever, but despite its potential, it has yet to play a significant revenue role for cable TV operators. What is essentially an in-house agreement between Comcast and its own network unit may not seem like a momentum changer, but if other TV networks see the dynamic placements working, they will likely come aboard, and other cable operators could follow Comcast's model.
Dynamic ad insertion might be the key for the cable TV players to become more aggressive with VoD at a time when viewing habits are radically changing. VoD has always shown promise, but operators have been unable to connect the revenue dots without devaluing their first-run programming.
- see this Philadelphia Inquirer story
U.S. VoD penetration is set to grow rapidly
Dynamic ad insertion has posed industry challenges