News

Comcast Preps for Leap in VOD Ads

6/25/2012 12:01 AM Eastern

New York — Comcast
expects video-on-demand
advertising impressions
on free VOD content to increase
tenfold in the next
12 months, Chip Meehan,
Comcast Spotlight’s West
regional vice president of integrated
media sales, told attendees
at the Multichannel
News/Broadcasting & Cable

On Demand Summit last
Wednesday (June 20).

“We have 400 million
monthly VOD views on
Comcast,” Meehan said.
“I’d love to have a dollar
for every view.”

Meehan predicted that
Comcast would experience
an upswing in VOD advertising
revenue as the MSO
completes licensing agreements
with programmers.

About 80% of Comcast’s 400 million monthly VOD views
are free TV content. If half of those 320 million views are
from cable programmers, with whom Comcast would be
likely to get some inventory, Meehan told the audience,
“that’s 160 million impressions per month. That times 40
bucks starts to be a pretty big business.”

Comcast currently has 17 million homes enabled with
dynamic ad insertion for VOD, aiming for full coverage by
the end of 2012. As of the end of the first quarter, Comcast
had about 20.1 million digital-TV subscribers.

The addition of dynamically inserted ads into VOD actually
results in a much better user experience, Scott Criley,
director of new media at Harris’s Broadcast Communications
division, said. Prior to VOD DAI, “it was a painful
experience, because you would see the same ad over
and over again — and you’d abandon halfway through,”
he said. “Now the ad mix you see [is] more like linear TV.”

The panel, “Is On-Demand Advertising Ready for Primetime?”
was moderated by Broadcasting & Cable business
editor Jon Lafayette.

September