Telco Pair Deploys HD Ad-Insertion Products

Horizon, Horry Tap RGB, SeaChange for System

by George Winslow -- Multichannel News, 12/2/2009 10:22:37 AM

Ohio-based Horizon Telcom and Horry Telephone Cooperative in South Carolina have announced plans to deploy a HDTV ad-insertion system from RGB Networks and SeaChange International.

"It is basically an issue of market share," said SeaChange director of advertising product management Yossi Weihs, who noted that the deals highlight growing interest from smaller and midsized telcos in high-definition ad insertion. "If you are not inserting on HD channels, you're giving up an increasingly large percentage of ad-insertion revenue. As HD usage goes up, HD ad insertion becomes a must."

Smaller telcos with limited footprints have traditionally struggled with local ad insertion and typically either don't insert local ads or farm out the business to outside rep firms.

That has changed in recent years, as automated systems have made it easier to add ad-insertion capabilities.
SeaChange partnered with RGB to develop a turnkey solution to make it relatively simple for smaller and midsized telcos to deploy HD ad insertion, said Weihs, who added that the companies have been aggressively marketing the product to telcos in 2009. The all-automated system uses RGB's Broadcast Network Processor equipment and SeaChange's Spot advertising-system software.

HTC, which uses coaxial cable to deliver its video products to customers in Horry County, S.C., was the first operator to deploy the ad insertion product under the two companies' new reseller agreement. HTC is the nation's largest telephone cooperative and serves more than 200,000 homes.

In addition to the ad-insertion product, HTC has also acquired RGB's Simulcast Edge Processor and Modular Media Converter as part of a major network upgrade to expand its HD offering. As a result of that upgrade, the co-op will be able to deliver three HD programs over each of its 6 Megahertz channels, rather than the usual two.

Horizon Telcom, which provides video, voice and data to eight southern Ohio counties, is expected to begin local ad insertion for 30 of its most popular HD and standard-definition channels by the end of the year.

Besides the growing interest in providing HD ad-insertion solutions, Weihs said operators have shown increased interest in products that offer more customization and greater flexibility in handling signals, so ads can be delivered at the highest possible quality.

Also driving demand is a recent move to regulate differences in audio levels between network programming ad commercials, Weihs added. "It's a problem that everyone has to deal with, operators and programmers," he said.