Cable Show 2009

Ericsson’s TANDBERG Television Demonstrates Dynamic Ad Insertion for Time Shifted TV

| Mar 31, 2009 | Digital Media Infrastructure | Show Update

| Analyst: Yoav Schreiber

Current Perspective: Slightly Positive Vendor Importance: Moderate/High Market Impact: Moderate

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Event Summary

March 30, 2009 -- TANDBERG Television, part of the Ericsson group, is showcasing a technology demonstration of its dynamic ad insertion solution for time-shifted television (TSTV) at the NCTA Cable Show (April 1-3 2009, in Washington, DC) and the NAB show (April 20-23 2009, in Las Vegas). By combining the capabilities of the Xport® Time-Shifted TV (TSTV) solution for network-PVR with the AdPoint® Advanced Advertising Platform, the solution provides a working model for operators, programmers and advertisers to further monetize ad inventory.

Analytical Summary

• Current Perspective: Slightly positive on Ericsson’s demonstration of its TANDBERG Television unit’s dynamic advertising solution at the 2009 NCTA Cable Show because the announcement reminds the industry of Ericsson/TANDBERG Television’s broad participation in key trends, such as the growth in both delivery and consumption of on demand content, and the increasing imperative to monetize content assets by selling advertising inventory with improved subscriber targeting. The demonstration is well timed to address the scaling requirements of cable operator time-shifted TV (TSTV) implementations which are expanding from trials to broader deployments, with the expected increase in advertising insertion models.

• Vendor Importance: Moderate to high to Ericsson/TANDBERG Television as the announcement furthers the company’s roadmap for delivering scalable and centralized cable solutions for TSTV services, including the management of recording and rebroadcast rights for various DVR-based services, as well as the dynamic ad insertion capabilities required to monetize such services. Showcasing these technologies at the NCTA Cable Show and the NAB show enables Ericsson/TANDBERG Television to demonstrate its continued presence at the forefront of solution innovation.

• Market Impact: Moderate on the overall digital media infrastructure (DMI) market and the content delivery segment given that the increased focus on scaling on demand content, TSTV services and related advanced advertising models will likely continue for the foreseeable future. Thus, rivals are sure to address these same technology “hotspots” with their own solutions while leveraging emerging industry standards and specifications (such as SCTE 130 and Canoe Ventures specifications), somewhat minimizing Ericsson/TANDBERG TV’s early differentiation gains.

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