Here’s How Comcast Is Changing TV Advertising


Television is changing and adapting to accommodate consumers’ desire for binge-watching and on demand television shows. As a result, Comcast Corp. (NASDAQ:CMCSA) is changing commercials to adapt alongside television’s evolution, according to Reuters.

As the largest cable provider in the U.S., Comcast is understandably anxious to keep advertising relevant in television. It’s newest attempt to do so has older television episodes being edited to include new ads. This could aid shows in obtaining revenue from advertisement. Past season are often available commercial free from services such as Comcast-owned Hulu and major online streamer, Netflix (NASDAQ:NFLX). Still, for seasons coming out with new episodes, most are only available via cable boxes, iTunes, and network websites. There are less commercial free options for the more recent seasons.

In the past, Reuters reports, networks only made money on advertisements for live showings and views for three days following the first showing of an episode. Comcast may alter that with its new advertisement capabilities. This would aid networks in making more money off of television shows. The new technology would only work for broadcast TV networks at this time though, because other platforms allow viewers to fast forward through commercials.

Matt Strauss, Comcast’s senior vice president of video services, said that the ad technology is presently being tested on Comcast-owned NBC and Walt Disney (NYSE:DIS)-owned ABC. “This becomes a new way for programmers to monetize not just the most recent episode, but every episode, which has pretty big implications,” Strauss told Reuters.

How responsive advertisers will be to the new commercial distribution tactic has yet to be seen. Strauss noted that it would be up to networks to convince to get them on board. Still, if all works out, networks could be looking a significant boost in the money they can make on each episode produced in a series.

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