New technology allows Comcast to insert ads into TV reruns - and raise revenue

Comcast Corp. is moving to earn money off its popular video-on-demand service by "dynamically" inserting advertisements into TV reruns.

NBCUniversal, which is controlled by Comcast, is the first programmer to agree to a deal. Comcast executive Marcien Jenckes said Tuesday that negotiations with other TV networks were "very far along" because the new ad-insertion technology would allow them to earn new revenue on existing TV shows.

Until now, networks could change advertisements on VOD shows, but only monthly. The new technology allows new ads to be inserted into the shows daily - a functionality that advertisers were seeking, officials said.

Most of the new advertising revenue will go to programming networks. But Comcast will own a small part of the new advertising inventory. Also, Comcast could earn commissions on the advertisements sold through its Spotlight division.

Comcast says there are 350 million VOD downloads a month. While VODs are popular, programming networks have worried that the huge volume of downloads was reducing viewership of first-run TV shows. The ad-insertion technology could alleviate those concerns by allowing the networks to earn new revenue.

NBCUniversal, based in New York, is controlled by Comcast, and it says that content from USA Network, E!, Bravo Media, and Oxygen Media will be part of the program. Chrysler and Kraft Foods have agreed to advertise through the program. Content from other NBCUniversal networks could be added later in the year.

Comcast says the technology will be available to other cable companies in 2012 through Canoe Ventures, which is an industry consortium.