FreeZone debuts in San Diego

By SUSAN RUSH
From CED Broadband Direct, August 20, 2002

Is offering free on-demand content a viable revenue model? After months of touting its ad-supported video-on-demand service Cox Communications Inc. is ready to find out and has launched the service in San Diego.

Cox's "FreeZone" offers digital subscribers on-demand access to advertising-supported content such as short independent films, action sports vignettes and interviews with local celebrities. Cox digital cable subscribers use the digital remote control and set-top box equipment already installed in their homes to view the programming and respond to advertisers.

The programming is supported by long-format, infomercial type advertising and sponsorships. Media planning company Universal McCann clients Coca-Cola and Sony Music Entertainment's Epic Records have committed to participate in FreeZone advertising. Last month, Cox and Universal McCann said they would work together to explore the benefits of advertising supported VOD. The iTV deal is said to be the first of its kind between a cable operator and an ad agency.

Cox has teamed with N2 Broadband and Concurrent Computer Corp. to make FreeZone a reality. For N2 Broadband's part, the company is supplying the content packager and the ad server.

N2 Broadband's content packager enables Cox to define navigation paths and the content delivered to viewers. The packager allows for bundling of menu choices, still images, video segments and storyboard information. Advertisers can get leads from their advertising segments because the content packagers enables viewers to request more information from advertisers through Request For Information sequences.

The ad server, which resides at Cox's VOD-equipped cable headend, receives ad content packages and stores the information about the content it imports. The ad server is designed to insure compatibility with the VOD system being used. In the San Diego launch, Cox is using Concurrent's MediaHawk 3000 Video Server System. The MediaHawk 3000 platform supports interactive advertising, entertainment on demand and subscription video-on-demand. Concurrent's system also supports tracking user interface activity within menu screens.