Will TiVo Destroy Ad-Supported TV?

By Julio Franco
Dec 1, 2003
  1. From Slashdot news coverage: "According to a column in Television Week, the increasing popularity of digital video recorders will actually cause a decline in ad revenues in the next few years. 'The rollout of DVR-type technology ... will reach critical mass with 11 percent penetration of U.S. television households by 2005 and 15 percent by 2006...As a result, five-year earnings growth for TV station groups could fall from as much as 10 percent to as low as 4 percent.' Why? DVR users skip at least two-thirds of commercials and the 'collective impact represents a threat to revenue and cash flow growth that cannot be offset ... Fifteen percent DVR penetration implies that 9.1 percent of all ads would not be watched and that advertisers would be overpaying by 9.1 percent, or $6.6 billion as calculated from projected 2006 total ad revenues of $72 billion.' And another business model goes down in flames."
  2. Per Hansson

    Per Hansson TS Server Guru Posts: 1,960   +218

    This frightens me; because now we will probably get even more intrusive ads in brodcasts instead :(
  3. BrownPaper

    BrownPaper TS Rookie Posts: 407

    in the US, there are already ads within the television programs themselves. there are strategically placed products in shows. i was watching a show on tv and a guy was using an Apple notebook and they had those new iMacs in the background.
  4. filkertom

    filkertom TS Rookie

    Anyone for BlipVerts?

    :eek: > :hotbounce > :dead:
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