TV technology is evolving, and so does the infrastructure supporting it. You are already aware of the move from broadcast to HTTP streaming. Another one you should know about is the transition from traditional Digital Program Insertion (DPI) methods using hardware splicers to Server-Side Ad Insertion.
As splicers approach the end of their operational life, what once might have seemed like a challenge is an opportunity for cable operators to embrace Dynamic Ad Insertion.
In this blog post, we’ll explore how DPI has traditionally worked, why splicers are becoming obsolete, and how manifest manipulation offers a chance to get additional revenue and reduce costs.
What is Digital Program Insertion (DPI)?
DPI refers to inserting advertisements into video streams, typically during scheduled breaks. Traditionally, this has been crucial technology for cable operators and broadcasters who monetize their content by dynamically inserting targeted ads on local markets (typically 2/3 minutes every hour).
In simpler terms, DPI ensures that a local barbershop’s ad, for example, is replacing a generic national ad. Technically, inserting ads through DPI occurs within a multiplex, where multiple programs or audio streams are bundled into a single transport stream. This allows cable operators to seamlessly insert local content while retaining control over national broadcasts.
The Role of SCTE Standards in DPI
DPI relies on standards developed by the SCTE. These standards ensure that different systems communicate seamlessly, including ad servers, splicers, and encoders.
Here are the critical standards involved in DPI:
- SCTE 35: This standard defines the cueing messages for Digital Program Insertion. In simple terms, it replaces the older analog cue tones used to signal ad breaks and transitions.
- SCTE 104: It describes how automation systems communicate with compression systems to generate frame-accurate SCTE 35 messages.
- SCTE 30: It defines the server-to-splicer communication interface, ensuring that ads are spliced into streams at the correct point.
- SCTE 118: It defines the interfaces for communication between ad insertion systems and traffic and billing systems, covering data exchange for schedule synchronization, ad placement tracking, and event reporting.
- SCTE 130: It defines a modular architecture for targeted ad insertion, including specifications for the communication between ad decision systems (ADS), content information services (CIS), and placement opportunity information services (POIS).
- SMPTE BXF (Broadcast eXchange Format): It defines the XML-based protocol for exchanging metadata and schedule information between traffic, automation, and media asset management systems. It ensures seamless communication of schedule updates, ad traffic information, and playback verification data in broadcast workflows.
How Does DPI Work?
DPI relies on triggers, or “cue tones,” embedded in the video stream that tell a system when and where to insert ads or other programming. Historically, these triggers were analog DTMF tones (dual-tone multi-frequency), but SCTE 35 messaging has replaced them.
Here’s a step-by-step look at how DPI operates:
- Cue Messaging: A video stream carrying network content includes SCTE 35 messages that specify where breaks are located. The splicing system reads these messages to determine when to switch from the network feed to a local feed (typically an ad server).
- Ad Splicing: When a break is detected, the splicer, informed by the SCTE 30, retrieves and inserts the appropriate ad from the ad server.
- Ad Return: After the ad break, the splicer returns the video stream to the network feed, ensuring a transition back to the original program.
- Verification: After the ad is inserted, a verification log is generated and sent back to the traffic and billing system to ensure the correct placement of the ad. This helps track the performance of ad campaigns.
A Focus On The Role of Splicers
As you can see, in traditional cable broadcast, splicers switch video sources by working at the frame level of video streams. Historically, switching between two synchronized video sources (like a live program and a pre-recorded ad) was relatively straightforward in analog systems. With the rise of digital systems, the process became more complex, requiring splicers to handle compressed video streams, often encoded using the MPEG-2 standard.
The End of Splicers: Transition to OTT and SSAI
Splicers have served cable operators well for many years, but their time is ending. The industry is moving towards making the splicers end of life, and this transition is inevitable. The hardware is expensive to maintain, difficult/impossible to upgrade anymore, and can’t compete with newer digital technologies that offer greater flexibility.
Many trends can explain it:
- Shift to IP-Based Systems: Traditional splicers were designed for linear video streams over broadcast networks, relying heavily on MPEG-2 or MPEG-4. With the growing dominance of IP-based video delivery and OTT services, hardware-based splicers have become obsolete.
- Compatibility Issues with New Standards: Many legacy splicers need help to support new video standards (HEVC, AV1), high-definition formats (4K, HDR), or adaptive bitrate streaming (HLS, DASH). As broadcasters upgrade their infrastructure, splicers that cannot keep up are phased out.
- Cost of Maintenance: Maintaining legacy splicers becomes increasingly expensive and power-extensive as parts become scarce and fewer vendors support older platforms. Operators often find that it’s more cost-effective to transition to modern systems rather than continue maintaining outdated splicers. This brings significant cost savings.
- Limited Revenue Potential: Splicers can only change channels for a regional or local audience. To generate new revenues, user-level targeting is the way to go.
- Maintaining Linear Parity: By leveraging SSAI, operators can seamlessly integrate regional or targeted ads into digital streams, aligning them with traditional broadcast schedules and maintaining uniformity across all platforms.
As the industry moves towards streaming and fully digital infrastructures, splicing technology is becoming increasingly irrelevant, which can be explained by many challenges. Like the limited scalability, splicers are bound to specific channels or video streams in traditional broadcast systems. This limitation makes it difficult to scale and insert personalized ads, particularly in environments with large audiences and diverse content consumption.
SSAI and Manifest Manipulation: The Future of Cable Ad Replacement
With splicers being phased out and platforms moving to IP-HTTP Adaptive Bit Rate streaming, the future of ad insertion lies in Server-Side Ad Insertion (SSAI) and manifest manipulation technologies.
SSAI enables ad insertion by dynamically altering the manifest files that list the sequence of video segments streamed in the player to the viewer. In contrast to splicers that switch entire video sources at the network level, SSAI works by embedding ads directly into the manifest file on the server side without touching the video itself.
It brings personalization by enabling highly personalized ads tailored to individual viewers based on their demographics, viewing history, and real-time behavior. This is impossible to achieve with the traditional splicing technology of the past.
How Cable Operators Can Benefit from SSAI and OTT Transition
Many cable operators are already considering retiring their old systems as streaming becomes the dominant mode of content delivery. By migrating to an OTT platform with SSAI capabilities, operators can keep pace with changing viewer habits while reducing the cost of maintaining outdated infrastructure.
Key Benefits
1. Bandwidth Optimization: As splicers are phased out, operators can repurpose the bandwidth once dedicated to splicing for other needs.
2. Enhanced Viewer Experience: The transition to SSAI improves the viewing experience by eliminating issues like buffering and visual artifacts commonly associated with splicing errors.
3. Increased Revenue: Personalized, targeted ads, even if they are regional or local, have been shown to command higher rates than generic broadcast ads. By embracing SSAI, cable operators can increase their advertising revenue while offering advertisers a more compelling product.
4. Futureproofing the Business: By moving to an OTT-based model with SSAI, operators are positioning themselves for the future. The flexibility, scalability, and cost efficiency of SSAI ensure that they remain competitive as viewer preferences shift away from traditional cable toward on-demand streaming.
5. Architecture More Efficient and Greener: Splicers were hardware-based appliances that needed to be deployed in each local market. SSAI can be a centralized solution, controlling every market from one unique system that scales only based on traffic.
Before/After SSAI To Replace Splicers
Conclusion
As the cable industry transitions from hardware-based splicing systems to software-driven SSAI and manifest manipulation, Cable operators have a unique opportunity to modernize their infrastructure.
Moving away from traditional splicers is necessary due to their end-of-life status. A strategic move toward technology is called manifest manipulation. This shift will enable cable operators to offer a better viewer experience, increase ad revenue, and future-proof operations.
broadpeak.io’s team can help you with this transition. Our application Dynamic Ad Insertion as a service has been designed for this. Now is the perfect time to consider migrating your infrastructure. Contact us to learn how we can help you transition to a modern, scalable ad insertion solution!
