Comcast: VOD ads 'not a test': no. 1 MSO now inserting spots on NBCU nets in 17 markets.(NEWS & ANALYSIS)

After years of trials, errors and false starts, ad-supported cable video on demand may finally be on the cusp of becoming a real business.

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Comcast has deployed dynamic VOD ad insertion in 17 markets, running ads from Chrysler, Kraft and several local advertisers across content from five NBCUniversal cable networks: USA Network, E!, Syfy, Bravo and Oxygen.

While the capability doesn't cover all of Comcast's footprint--the MSO said it's going to roll it out nationwide in the coming year--the ads represent real advertising revenue.

"This is not a test," Marcien Jenckes, Comcast's senior vice president and general manager of …