) has entered into an agreement with BlackArrow, which primarily
specializes in dynamic ad-insertion for video-on-demand (VOD)/pay
As the demand for VOD continues to grow, service providers are
on the lookout for better monetization of the service, particularly
since it is provided free of cost to viewers.
The implementation of BlackArrow technology will therefore help
Comcast to regulate the service of ads, better target them and also
provide it with the flexibility to include national as well as
local advertisements alongside VOD content, adjusting suitably for
time and geography. Moreover, it will also allow the company to
swap national advertising slots with local ads.
A few days back, BlackArrow entered into a partnership with
Time Warner Cable
) to help them add advertisements to their VOD services.
Research firm TDG reported that the present ad-based VOD market
is worth $150 million and expected to reach $6 billion in the
not-too-distant future. The research firm believes that technology
enhancements will drive this increase.
It is apparent that service providers also recognize this lost
opportunity, which is why they are increasingly opting for
technology such as is provided by BlackArrow. With the increased
effectiveness of advertisements, more advertisers will be attracted
into the segment. Moreover, since Comcast serves 20 million
households with a total subscriber base of 50 million, the
opportunity for additional advertising dollars is huge. On the
downside, it also expected that such dynamic ad-insertion process
may affect the video quality, hence affecting the growth of VOD
Currently, Comcast has a short-term Zacks #3 Rank (Hold) on the
Based in Philadelphia, Pennsylvania, Comcast Corp. is the
largest cable MSO (multi service operator) in the U.S. offering
various consumer entertainment, information, and communication
products and services to the residential and commercial
COMCAST CORP A (CMCSA): Free Stock Analysis
TIME WARNER CAB (TWC): Free Stock Analysis
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