Horry Telephone Cooperative Expands Service and Generates More Ad Revenue with RGB’s Broadcast Network Processor and SeaChange Spot System
SUNNYVALE, California and ACTON, Massachusetts – November 5, 2009 – RGB Networks, the leader in network video processing, and SeaChange International (NASDAQ: SEAC), a leader in video-on-demand, IPTV and advertising systems, are already passing on to operators the benefits of their recently announced strategic partnership. The companies today announced that Horry Telephone Cooperative (HTC), the nation’s largest telephone cooperative, has deployed RGB and SeaChange products to deliver more high definition (HD) programming to its cable television subscribers and to generate new advertising revenues by inserting ads from local advertisers into its programming. HTC is the first operator to deploy the SeaChange and RGB Networks turnkey digital advertising insertion solution under the two companies’ new reseller agreement.
Since its founding in 1952, HTC has provided telephone service to the residents of Horry County, South Carolina, which includes the towns of Myrtle Beach, North Myrtle Beach and Conway. In 1983 HTC expanded its services and began offering cable television delivered via a hybrid fiber coaxial (HFC) network. HTC continually upgrades its cable network in order to offer the latest cable broadband services, including HDTV and video-on-demand (VOD).
“We face stiff competition, but by continually adding more services and ensuring a superior customer experience, we’re winning the battle,” said Tom Vitt, HTC’s Director of Marketing. “RGB Networks’ and SeaChange’s products – in particular the Broadcast Network Processor and Spot system – play critical roles in this effort, enabling us to offer more HDTV and to carry ads from local advertisers, which adds to our bottom line.”
To offer its subscribers more HD, HTC is using RGB’s multi-function Broadcast Network Processor (BNP) to deliver three HD programs in each of the 6MHz channels it has allocated to its HD service, rather than the usual two HD programs. The BNP’s advanced transrating and statistical multiplexing capabilities allow up to 50 percent more HD programs to be carried without increasing bandwidth or impacting picture quality. In combination with its seamless ad insertion capabilities, the BNP provides HTC with a complete digital video processing platform.
Local multichannel advertising is a proven revenue generator, earning U.S. cable operators more than $4.3 billion in 2008. Fortunately for HTC and other small operators, RGB’s BNP combined with SeaChange’s Spot system perform seamless, automated ad insertion in addition to several other capabilities. The BNP’s simple licensing model allows operators to immediately deploy it for a variety of applications – from grooming channel line-ups to delivering more HD – and to then implement local ad insertion when ready. Working in concert with the BNP, SeaChange Spot automates local digital multichannel advertising insertion without the need for operator intervention.
In addition to the BNP, HTC has also deployed RGB’s Simulcast Edge Processor (SEP) and Modular Media Converter (MMC) products in its cable network as part of its comprehensive network upgrade.
“Delivering more HDTV and generating additional ad revenue are key for video service providers of all sizes, and HTC is able to accomplish both goals with a single product – RGB’s Broadcast Network Processor,” said Lou Mastrocola, Vice President, Americas Sales for RGB Networks. “HTC and other service providers – both large and small – are increasingly choosing the BNP for their mission-critical HD, ad insertion and other digital video applications because of its proven performance, cost-effectiveness and excellent video quality.”
“HTC’s deployment of a turnkey SeaChange and RGB solution to begin realizing new revenues through local ad insertion underscores precisely the opportunities we aimed to create under our reseller agreement,” said Yvette Kanouff, Chief Strategy Officer, SeaChange. “SeaChange and RGB Networks have delivered a comprehensive solution to help operators open new revenue streams in a multibillion dollar market.”
