Wednesday, February 22, 2012

Canoe Ventures Dropping Interactive Ads Business

As the content community embraces the cloud and Cisco plans to sell its S-A set top box business, Canoe Ventures has announced that it is giving up on EBIF. "The decision to abandon ITV ads and dramatically pare back Canoe's mission came after a review by its cable operator owners, according to a Canoe spokeswoman." The push for better connectivity to the web, more cloud based operations, including N-DVR and VOD, and perhaps even Comcast's push into a rival Netflix streaming business, all demonstrate that the set top box is history.

Also too, advertisers didn't find much interest in overlays that intruded on top of video commercials. With the primary goal to click a button for more information, the boxes looked intrusive and the clicks weren't coming. And advertisers and viewers weren't embracing the added value feature either. So what is next for Canoe? "Canoe's more narrow goal, at this point, will be to build a way for MSOs and national programmers to generate revenue from dynamically inserting ads into on-demand content across both VOD inside the home and TV Everywhere outside the home." But with other companies, like Seachange and others, already in this space, can Canoe re-model and survive? It just doesn't look promising.

1 comment:

  1. You're a little bit wrong, the response rate for Canoe's direct marketing efforts was much higher than other traditional direct marketing response rates.