• by Mitch Oscar , Op-Ed Contributor, July 8, 2008

During the 2002/03 broadcast season I was fortunate to have consulting agreements with cable systems operators and established linear cable networks to help launch their video-on-demand platforms -- ad-supported as well as advertiser-provided content. I would often arrive with the ad-supported cable network's affiliate guy in tow. We'd wait patiently for the designated "new interactive media" specialist, and affiliates' guys and gals from the opposing camp, the systems operator. Often they would keep us waiting. When they arrived everyone would be cordial, hands shook, and then immediately, the fireworks began. Accusations of robbery and skullduggery flew across the room: promises un-kept, deadlines un-met, and interactive program guide's un-navigationability.

And then the dialogue really turned nasty, to what I thought was the core of the animosity: exploitive monthly subscriber licensing fees and channel gluttony from the cable operator's point of view; and limited distribution, data analysis, promotional invisibility and restrictions on content and commercialization, from the cable network's viewpoint. Of course, the common thread from both entities' perspective, as I gleaned through repetition, was profit participation, or the lack thereof.

Although the cable networks have garnered greater penetration of their VOD channels since that formative broadcast season, the media constituencies still suffer from the lack of evolution of the ad-supported video-on-demand model: commercial integration deadlines are still 30 days prior to the first day of the month of activity, there is limited ratings reportage (other than the monthly uniques, gross, duration and some daypart and day of the week graphics) -- though Rentrak is doing the best it can with the "data-allowed-to-be-proffered" by the operators, navigation is still tough, meaningful promotion lacking outside of the cable network's cross promotion - generally at the expense of the presenting advertising, and given my area of centricity, a dearth of interactive elements (telescoping, RFI, microsite) melded onto the ad-supported cable network's VOD channel content (creative and commercial) including addressability, dynamic ad insertion and datamining -- privacy protected, of course.

This last point is most dear to me. I would love, as an advertiser, to have the ability to enable a linear commercial that airs on the cable networks to link or telescope directly to a long form piece of content provided by the advertiser and housed in the free VOD area of the operator's menu. Or, once ensconced in the free VOD area, offer a viewer interactive extensions, such as request for interaction and linkage to other long-form video or microsites -- seasoned, of course, with a recipe that includes household geo-targeting, datamined non-personal identifiable information and dynamically served applications.

Perhaps this is the realm in which Canoe will paddle -- or not. To date, most of the articles I've read suggest that Canoe will focus its attention on making the cable networks' linear programming, and perhaps national commercial inventory as well, more interactive with technology from Invidi, Navic, OpenTV, and Visible World, while NCC conjures up a formula to link all legacy and newbie set-top boxes regardless of manufacturer, creed or capacity.

An aside: Congratulations, Chet, Tom, John, and Microsoft; we are rooting for your continued growth within the cable community.

What about enhancing the video-on-demand offering (ad-supported and advertiser-supplied) -- ya know those billions of monthly streams -- to enrich the advertising value proposition and enhance the viewer's experience? Canoe-ians, on behalf of the advertising community, please broker an agreement -- revenue sharing or in exchange for services and/or commercial inventory -- with the cable networks, operators and digital terrestrialists. Collectively, all participating constituencies should garner greater advertising dollars in appreciation. Allow VOD to fulfill its destiny.