Ryan admits that the first question operators tend to ask is whether AdGorilla's system actually works and is also reliable at such a low price point. "Hell, yes, it works," is his response. "It has to be reliable and also easy to install." Several operators are taking those claims to task.

    To date,thelargest system to deploy AdGorilla's system serves about 20,000 subs, with others serving fewer than 1,000. Some of its customers include Buford Media; Willamette Broadband of Woodburn, Ore.; and Semo Communications Corp. , a provider that operates in parts of Southeast Missouri.

    "Any additional revenue is always a good thing," says Ben Hooks, CEO of Buford, which serves primarily markets with fewer than 500 subs. Its largest property serves about 8,000 customers. "We've always been somewhat limited [on ad sales] because headend equipment tends to be too expensive."

    AdGorilla's "reasonable" pricing has allowed Buford to offer local ads on about eight channels in its system in Greenbrier, Ark. "It's installed now and going after the ad revenue source. We expect to do more of it as we go forward," Hooks says.

    In addition to drawing local ad revenue, operators can also tap the system to insert ads that talk up new cable services and promotions, complementing direct mail, radio, and other tactics.

    "The marketing opportunities are equally as compelling," Ryan says.

    Although AdGorilla's initial strategy targets small- and mid-sized MSOs, "there's no reason why any system couldn't use this," Ryan says. "We can serve any system size; it really doesn't matter."

    Beyond mid-sized operators, AdGorilla should expect to face stiff competition from market-leading suppliers such as C-COR and SeaChange International Inc. (Nasdaq: SEAC - message board), which don't relinquish market share easily.