Comcast Media Center Offering "VOD Valuation Tool"

Top Quote GUIDES Cable Operators in Determining ROI for Launching a VOD Service, Including HD VOD, on Systems Serving Smaller Markets. End Quote
  • Denver, CO (1888PressRelease) August 12, 2010 - With the increasing importance of HD VOD to a cable system's lineup of competitive HD programming choices, Comcast Media Center (CMC) has developed a "VOD Valuation Tool". The online business-modeling tool assists cable system operators in evaluating the cost and return on investment of launching the VOD In a Box™ service, the managed video on demand (VOD) service jointly offered by the CMC and ARRIS Group. The VOD In a Box™ service, ("VODIaB"), can deliver up to 3,300 hours of centrally managed VOD programming per month, including HD VOD content.

    Drawing from the CMC's analysis of cable systems that have launched the VOD In a Box service, the online tool allows cable systems to input customized data specific to their system architecture and market to help determine, among other things, the expenses and additional revenues they can expect in the first five years following launch. The financial modeling tool also can help cable system operators project the length of time it will likely take for their VOD offering to generate a positive return on their investment (ROI). "Seeing is believing, especially when a cable system operator needs to demonstrate to funding sources the expected value of their investment," said Gary Traver, Senior Vice President & Chief Operating Officer for Comcast Media Center. "With the increasing importance of VOD as a way to provide a competitive lineup of HD video choices, especially for cable systems serving smaller markets, the VOD Valuation Tool brings tangible insight into the benefits that a managed VOD service can add to the business."

    The CMC's analysis found that on average, affiliates using the VOD In a Box service increased their pay per view revenues by 17 percent, per month for each of the first 12 months following their launch of the managed VOD service. Most systems also generated additional revenue growth through increasing their premium channel revenues, as a result of enabling customers to enjoy subscription video on demand (SVOD) services, and by growing their digital subscriber bases through increased sales and reduced churn.

    On the expense side, the VOD In a Box service, which allows cable systems to accept content from multiple sources without requiring management of the content at each headend, reduced capital expense by 25-50% and operating expense 30-50% over a typical VOD system, the CMC's analysis found. As a result of the increased revenues and lower costs for launching the service, the potential discounted payback for affiliates that use the VOD In a Box service can occur within as few as 13-18 months of operation, as compared to the 30 to 40 months typically required for launching a typical VOD system, the CMC found.

    In addition to the hardware, installation and maintenance required to launch and support VOD, the VOD In A Box service includes centralized services to assist in acquiring and managing content, creating and validating metadata, and pitching VOD content to the ARRIS servers. CMC's VOD content management services also include ongoing quality assurance monitoring and a secure Internet portal that assists cable systems in tracking when programming has successfully propagated from the CMC catcher to the local VOD system. The portal can also list VOD assets by programmer or provide a total view of all VOD assets. Cable system operators interested in using the VOD Valuation Tool may contact their HITS representative at the CMC or complete the online request form, which may be found at:

    About Comcast Media Center:
    Denver-based Comcast Media Center (CMC), a business unit of Comcast Cable, provides centralized content management and distribution solutions for cable systems, video content providers and advertisers "All From The CENTER." CMC's content distribution platforms include its HITS Quantum all-digital portfolio, which consists of over 280 linear HD and SD digital video and audio services that reach more than 2,000 local cable system headends. In addition to VOD In a Box, the CMC's advanced digital video services include HITS AxIS, a suite of services that support the development and delivery of iTV applications; and HITS Broadband, a carrier-class IP connectivity service.

    The CMC's content distribution services include a video on demand (VOD) platform that manages and distributes over 9,000 VOD assets each month; live event and TV network origination; satellite and terrestrial fiber transmission services; disaster recovery; transcoding, hosting and storage for online and mobile video; and a full set of video production and editing capabilities. Its advertising distribution services include the Advertising Distribution Network (ADN), a web portal for centrally managing advertising and promotional spots that has over 1,700 users at cable MSO, division and system locations. More information is available at

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