ACTON, Mass. - Midcontinent Communications, a cable television operator serving viewers in North Dakota, South Dakota and Minnesota, is delivering on an aggressive strategy to dramatically increase the amount of high-definition video-on-demand (VOD) content available to its viewers from its centralized VOD operations using software and systems from SeaChange International (NASDAQ: SEAC).  The massive project is adding nearly 9,000 hours of capacity to each of its five video server systems, which are managed by a single SeaChange software platform.

"We recognized that adding HD content in general and particularly HD VOD could not only help differentiate us from competitive satellite operators, but also generate additional revenues," said Tom Heier, corporate engineering manager, Midcontinent Communications.  "Midcontinent’s longstanding relationship with SeaChange, which dates back to our first analog ad insertion systems and our later launch of VOD, made for a natural decision to continue to expand upon the foundation that we have built together."

Laying the groundwork to add more HD VOD titles as well as complement its linear HD channels with related VOD material, Midcontinent increased the capacity of its five SeaChange server systems from 2,500 to 11,000 hours each.  The systems, which service 18 headends dispersed over nearly 200,000 square miles of high plains that comprise Midcontinent’s service area, are driven by SeaChange’s Axiom On Demand open content delivery software.  The Axiom software is running at Midcontinent’s master digital headend in Sioux Falls, S.D., making it far more cost effective and efficient to operate a network that covers the vast area.

Data released by SNL Kagan affirms the revenue-generating potential of HD VOD content.  In the firm’s 2008 Media Trends report, revenues for HD VOD movies in the U.S. are expected to increase more than seventeen-fold between 2009 and 2014.

"All of the new VOD content is available to the more than 100,000 customers who subscribe to Midcontinent’s digital cable service," added Heier.  "Since our launch of VOD in 2006, Midcontinent has been seeing steady growth and is now serving more than one million video streams a month; and we have worked with SeaChange to ensure we have a system in place that can easily scale alongside the growth of our subscriber base and the demands they place on the system."

"SeaChange’s open and scaleable systems are enabling operators like Midcontinent and others deploy streamlined VOD operations that help them do business more competitively and efficiently," said Sanjiv Moré, senior director, advanced advertising and VOD sales, SeaChange.  "HD VOD is already proven as a key competitive advantage and is poised to serve as a significant revenue generator."
 
The expansion of Midcontinent’s VOD platform is being managed by SeaChange’s professional services organization, a global team of seasoned industry experts comprising global field service and training, program and project management, custom engineering, operational support, and integration and consulting services.

In addition to the 11,000 hours of storage capacity, Midcontinent’s current SeaChange VOD system can deliver more than 8,500 simultaneous video streams - a capability that can be easily doubled without adding equipment.  Its master digital headend in Sioux Falls receives VOD content from multiple providers which is uploaded to the main storage server, and is then propagated to the other four systems over Midcontinent’s Northern Plains network.

SeaChange experts will be available to discuss VOD and advanced advertising opportunities during The Cable Show, April 1-3 in Washington, D.C., at SeaChange booth 825.

About Midcontinent Communications
Midcontinent Communications is the Upper Midwest’s leading provider of cable television, local and long distance telephone service, broadband Internet access, and cable advertising services to communities in North and South Dakota, and in Minnesota.

Midcontinent’s service area includes over 200 communities serving over 240,000 customers. For more information, please visit our website at www.midcocomm.com.

About SeaChange
SeaChange International is a leading provider of software applications, services and integrated solutions for video-on-demand (VOD), digital advertising, and content acquisition monetization and management.  Its powerful open VOD and advertising software and scaleable hardware enable cable and telco operators, as well as broadcasters, to provide new on-demand services and to gain greater efficiencies in advertising and content delivery.  With its Emmy Award-winning and patented technology, thousands of SeaChange deployments are helping broadband, broadcast and satellite television companies to streamline operations, expand services and increase revenues.  Headquartered in Acton, Massachusetts, SeaChange has product development, support and sales offices around the world. Visit www.schange.com.