With more consumers watching TV shows on their own schedule, cable TV provider Comcast (CMCSA) has developed a way to put current ads into older episodes. CMCSA shares surged more than 4% in Monday morning trading.
Usually, advertisers are only charged for ads that run during live broadcasts or are included in on-demand replays that are watched within several days of the original broadcast. Comcast is hoping to boost revenues with technology that permits it to include ads running on current broadcasts into older TV episodes in its on-demand library, Reuters notes.
One industry research firm estimates that ad placed in on-demand programming currently generate about $1 billion a year. That could grow, if Comcast — the largest cable TV provider, with 22 million customers — can persuade broadcasters to pay additional fees for fresh ads run on older episodes.
Comcast partnered with Nielsen (NLSN) to create the new ad-placement system. It is testing the technology in shows aired on Disney’s (DIS) ABC as well as its own NBC broadcast network. Comcast says that CBS (CBS) has expressed interest in the technology.
Last month, reports surfaced indicating that Comcast plans to begin selling downloadable copies of movies through it Xfinity service.