TelcoTV 2008

Ericsson and RGB Demo “Meat and Potatoes” Local Ad Insertion

| Nov 12, 2008 | Digital Media Infrastructure | Show Update

| Analyst: Yoav Schreiber

Current Perspective: Neutral Vendor Importance: Moderate Market Impact: Moderate

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Event Summary

November 11, 2008 – Ericsson and RGB are demonstrating an integrated local advertising insertion solution for telecom carriers at Telco TV 2008. The demonstration at RGB’s booth combines RGB’s carrier-class Modular Video Processor (MVP) performing frame-accurate ad splicing into MPEG-4 AVC streams encoded by Ericsson’s TANDBERG EN8090 MPEG-4 AVC high definition (HD) encoder.

Analytical Summary

• Current Perspective: Neutral on the Telco TV 2008 demonstration by Ericsson and RGB of their integrated solution for local advertising insertion because, while they are realistically addressing the IPTV linear broadcast advertising opportunity, by enabling telcos to participate in the local advertising market that their cable/satellite competitors enjoy – to the tune of 5 billion USD annually in the U.S. - the industry buzz is focused on targeted and interactive advertising for video on demand (VoD) streams. Thus, this relatively basic demonstration may pale in comparison to announcements of more advanced, unicast advertising functionality, which many expect to be more lucrative. Yet, this demonstration is well timed, given that telco operators are still early in experimenting with ad insertion technologies, and is tuned to their current focus on local ad insertion into broadcast streams.

• Vendor Importance: Moderate to Ericsson and RGB because, while their demonstration addresses a basic use case for local advertising insertion into MPEG-4 linear broadcast streams, they are not presenting any new ad splicing or encoding functionalities as part of their integrated solution.

• Market Impact: Moderate on the digital media infrastructure (DMI) market where rivals can point out that the heavy lifting for IPTV advertising lies with dynamic and targeted ad insertion into VoD streams– for which they have their own competing announcements and capabilities. They can also point out that the integrated solution being demonstrated by RGB and Ericsson/TANDBERG TV does not encompass a complete advertising solution, given that it lacks elements such as ad servers, and campaign management solutions that would facilitate operator purchasing decisions.

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Current Perspective

Competitive Positives and Concerns

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