p10-12,14,16 IPTV@IBC08 VOD v3 23/7/08 14:45 Page 16
IPTV@IBC08 > On-demand business models Cable & Satellite Europe
OpenTV is one of a few since it can be extremely personalised and localised” says
companies to develop Edgeware’s Appelquist. “There is strong interest from tel-
targeted advertising cos, even though it is still in the early stages, both in terms
solutions. of business models and technology options.” While it’s
still in the early stages, some believe the breakthrough is
going to come from on-demand advertising models.
“There’s more value for operators using live ad-insertion
because there are more eyeballs, but on the VOD side it’s
a much simpler process,” says Fautier. Harmonic offers a
stream-switching model to insert different ads at the start
and end of a programme. “We just deliver a stream before
and after the VOD session –it’s very simple,” says Fautier.
However, he adds that operators are likely to wait until
they’ve got significant subscriber numbers to warrant
investing in ad insertion technology. “There is a market
MPEG-4 files out of our VOD servers that have been pre- but the number eyeballs is too small while the content has
composed. Each time a user clicks on the menu we have to be paid for. The operator doesn’t want to spend money
the file pre-encoded. It’s nothing to do with what you see because it knows the return isn’t there. It’s waiting to get
today – it’s a new way of delivering the content on exist- more eyeballs, either from pay-TV subscribers or by offer-
ing set-top boxes. The key issue is that it doesn’t load in ing more VOD for free.”
CPU or in graphics to the set-top box, because the big Mark Evans, managing director at broadcast manage-
danger we see today is that a richer interface means more ment, traffic and billing system specialist MSA Focus
expensive set-top boxes.” (IBC Stand 3.B40) says that the provision of targeted
TV technology company Nagravision (IBC Stand advertising is a natural extension of the IPTV environ-
1.D69) has developed NagraGuide, a suite of interactive ment but that various hurdles need to be overcome before
applications designed with high-definition and standard- it becomes a mass market reality. “There are ethical ques-
definiton user interfaces to guide subscribers through on- tions and privacy rules to consider.” he says. “There are
demand content and DVR management applications. also concerns around the logistics of pricing, billing and
IPTV middleware specialist Dreampark’s (IBC Stand scheduling for multiple streams of ads.” According to
5.A21) Dreamgallery middleware has been developed to Evans, the broadcast industry needs to invent a new com-
enable IPTV operators to launch a VOD trailer channel to mercial model to define, facilitate and charge for emerg-
display a selection of on-demand content in a attempt to ing targeted advertising techniques.
persuade users to purchase it. “The Dreamgallery Trailer Tandberg offers a targeted advertising solution in the
channel is a way to promote on-demand content,” says form of its AdPoint advanced advertising platform
CEO Per Skyttvall. “It is developed by the operator which Looking forward, Delaney believed it will be possible to
creates a movie list of VOD trailers. It allows channel deliver dynamic, contextual advertising which can be cus-
operators to add the trailer channel as a TV channel that tomised to individual tastes and preferences. “There are a
appears in the EPG like a normal channel but the end number of conditions that need to be met in order to
user may actually purchase a VOD movie directly from it, make this happen,” he says. “Like the ability to utilise seg-
rather than searching through an extensive VOD archive mentation data, having sufficient subscriber numbers to
to find movies.” attract the advertisers, and the ability of the operator to
actually sell the available slots to the advertising commu-
nity. There also needs to be further education within the
Targeted ads marketplace and to the end user regarding privacy issues,
which continue to be debated at length.”
It’s no secret that, bar a few exceptions, telcos have strug- While VOD has been at the forefront of operators’
gled to win mass adoption for IPTV services. As previ- strategies, it has become clear that they need to develop
ously mentioned, one way of tempting new subscribers, flexible business models to be applied to the various
and to keep hold of exiting customers, is to offer on- trends in on-demand services. Technology vendors too
demand services free of charge. The natural way to fund are responding by enhancing and developing their servic-
such business models is via advertising. es to better suit the demands of operators.
While cable advertising might be big business in the Ultimately, freedom of choice for the customer could
US, in Europe telcos could take the opportunity of racing be the key for operators to differentiate themselves from
ahead of cable rivals by developing potentially lucrative their broadcast rivals, whether that means offering free
targeted advertising opportunities. “IPTV is a perfect plat- content supported by advertising, or advanced services
form for as insertion, both for VOD and for linear TV, such as network PVR. ●
searchable archive at www.informamedia.com
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