Digital Ad Insertion, mixed responce from MOSs...............................
mediacentral.com
Digital Ad Insertion Technology Going Under the Microscope
By Jim Barthold
The capability to insert digital ad streams into statistically multiplexed digital programming is expected to draw some Western Show attention, according to prospective convention-goers.
Tele-Communications Inc.'s digital rollout uses NextLevel Systems Inc.'s statistical multiplexing technology to compress 12 channels in a 6-MHz broadcast stream via its Headend In The Sky service. What makes TCI somewhat unique is the number of "basic," ad-supported channels HITS is broadcasting. In the analog word, local systems can insert advertising into these channels. The inability to insert ads into multiplexed streams could shut out local advertisers and operators.
"That's something that is currently under development," says David Fritch, the senior manager of marketing/strategy in NextLevel's Digital Networks Systems group. "It is something that we're looking into and we're under development with. As operators deploy digital systems, they're looking at the same functionality that they have now with analog systems, so a lot of the work we're doing right now is working on the access control and digital insertions to get everything at the same level of functionality."
Adds Ed McGrath, the CTO at SeaChange International Inc.: "We've frankly gotten mixed results from the industry. I think there are operators, including TCI, who are very excited about digital to get more channels. From several operators, I've heard just the opposite. There are several operators who have said, OLook, we're really just not interested. It's not a market for us.' "
Although McGrath promises a "technology demonstration" of SeaChange's digital ad insertion capabilities at the Western Show, he admits that his company doesn't feel pressed to craft an immediate solution. The reason: Operators say that the digital programming market is so small that advertisers see no immediate need to buy in.
"If you have to get a digital set-top to get it, then there aren't going to be a lot of people watching it, and the advertisers won't be that interested in advertising on it," McGrath says. "That will change over time. I'm hearing from several operators, OWe're just not interested in digital insertion of advertising for quite a while' and I'm hearing from one or two that they are."
Another issue for ad-insertion companies is the possibility of widespread digital deployments via CableLabs OpenCable initiative to build standardized, interoperable boxes that will be sold at retail.
"Anything that drives more digital set-top boxes out there drives digital insertion of advertising," McGrath concedes.
Even more important than digital ad insertion, he adds, is the cable industry's ability to offer near-video-on-demand and video-on-demand using its digital capabilities.
"Frankly, the area where we're seeing a tremendous demand is in the pay-per-view movie arena," McGrath says. "Pay-per-view movies, there's no question about it, they're going to be on the digital tier."
He says SeaChange is learning about digital PPV through Time Warner Cable of New York City and IPC Interactive Inc. [IPCI], which is funneling service to hotels throughout the city.
(November 24, 1997) |
