This Technology Inc., one of the nation’s leading dynamic ad-insertion technology company, has been contracted by Comcast and Verizon FiOS TV to provide proprietary software, which would allow pay TV providers to place ads in free entertainment-on-demand programming from channels such as Comedy Central, MTV, Discovery Network, Nickelodeon, CBS, and more.
Cable providers and broadcast networks alike are interested in ad insertion technology, since ad revenue is still the biggest source of income for content providers. Comcast, which is the parent company of NBCUniversal, is especially interested in the development of ad insertion technology in general now that customers are used to entertainment on demand and are moving to consuming video online.
The question is how the ad insertion technology will divvy up the ad revenue pie between pay TV companies and content providers. From what it looks like, the ad insertion technology increases the pay TV company’s stake in advertising, because it could be an opportunity for another revenue stream that is not dependent on subscription income. And as long as broadcasters feel that their ad revenue income is stable, it may keep their asking price for broadcast rights from getting higher than it already is. There have been many notable disputes and blackouts between pay TV providers and broadcasters over content rights because of skyrocketing content fees. Could This Technology’s ad insertion software provide the acceptable compromise the industry has been searching for? Pay TV customers will definitely see soon enough in the coming year.