INCablenet is close to signing a deal with MTV India, whereby it would be able to insert local ads on the music channel carried in its cable network. According to the agreement MTV will permit INCablenet to run local ads at the head-ends for an agreed time. INCablenet, in return, will ensure prime band carriage of the music channel on its network.
The local ads will be approved by MTV, ensuring that they fit into the brand personality of the channel. INCablenet will make a commitment that no overlapping of clients takes place as that would lead to a cut in rates for MTV advertisers.
The local ad avails (LAAs) will be made possible through a cue tone and automatic ad insertion equipment. The computer server at INCablenet’s main head-end will detect the cue tone from the satellite and provide the ability to play local ads into both analogue and digital programming services seamlessly.
INCablenet is also talking to Discovery Communications and Turner India to get into LAAs arrangements with them. The talks, however, have not been conclusive so far.
Pay-TV broadcasters can increase their revenue collections from MSOs by allowing LAAs. Cable networks would be willing to pay for more connectivity to channels, as they would be able to augment their resources from cable advertising.
MSOs are permitted the world over to play local ads on the programming services that they receive from satellite networks, which they deliver to their customers. In India, LAAs will provide a platform for satellite channels and cable networks to work together.
Most broadcasters are not willing to take to this route as a solution to the endless disputes between pay channels and operators.