If Time Warner Gets This Right, It Could Be a Huge Paycheck for Cable Companies

Time Warner Cable (NYSE:TWC) has revealed plans to unleash its BlackArrow’s Advanced Advertising System across the nation. The system will deliver real-time, dynamic ad insertion for video-on-demand content, which is a key step toward enabling Canoe Ventures’ plans to deliver VOD ads to cable users across the U.S..

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Even though Time Warner Cable has not provided specifics regarding the new service, Comcast (NASDAQ:CMCSA) and Rogers Communications (NYSE:RCI) are among the other MSOs that have deployed the BlackArrow system. According to Time Warner Cable, the BlackArrow system will provide one of the critical cornerstones essential to creating a nationwide footprint of dynamic on-demand ads. TWC asserts that it will be able to use the BlackArrow ad-insertion system to increase the availability of commercial inventory on a local and regional level.

Canoe Ventures — a joint venture between Comcast, TWC, and the four other U.S. cable operators — is creating a dynamic ad-insertion VOD service that will span multiple operators. In order to focus exclusively on VOD ads, Canoe halted its TV operations earlier this year. Investors in BlackArrow will include Comcast, Cisco Systems (NASDAQ:CSCO), Motorola Mobility (NYSE:MMI), Intel (NASDAQ:INTC), and NDS Group.

TWC will be the first cable system operator to deploy the BlackArrow Ad Router to redirect ad requests to third-party advertising-decision services for real-time decisioning and fulfillment. Last year, TWC took an equity stake in BlackArrow, with President of Time Warner Cable Media Joan Gillman as member of BlackArrow’s board of directors.

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