Advertisers could loose $8 billion because of PVRs / DVRs
Tekrati is reporting that JupiterResearch has found that %53 of PVR / DVR users use their devices to skip commercials. Along with the report they claim that because of this, the advertising industry could loose up to $8 billion dollars it currently holds in the $74 billion TV advertising market.
This report echoes other studies that show that PVR / DVR users actually use the features on their devices. The whole thing seems kind of confusing to me – almost like the boy who cried wolf (or the MPAA or the RIAA). Why would cable companies introduce devices that effectively eliminate a potential source of income? If advertising revenue were to really dip enough that it affects profits, I’m willing to bet that cable companies would start to axe features like commercial skipping. Would it drive up advertising revenues? Possibly. Would it lower PVR / DVR sales? More likely than not.
This whole scenario would be a real boom to the do it yourself PVR / DVR builder who is not bound by cable company equipment.
[…] I can’t help but wonder if Product Watch is just the beginning of a new advertising model. Think about it. First we are hearing all of this news that the TV advertising industry is being smacked around left right and center, and now we have a way to watch commercials on demand. […]
[…] In recent weeks the relationship between PVR / DVR users and advertising companies has been coming to light more and more often. Many companies are starting to raise a fuss and claim that PVRs / DVRs in general are hurting them. Some companies like to complain while others try to embrace the new technology. […]
[…] In the next stage of the whole ‘PVRs / DVRs are bad for TV advertisers’ debate, Coke has announced that they will jump into the game and launch their own PVR / DVR targeted ads. Much like the GE ads, these ads will contain information that can only be seen at slow speeds. The net effect is the same as others who have tried this approach: to get users to watch the commercials. […]
[…] To me it only makes sense that advertisers should pay for viewers regardless of how they watch the show. Viewers are viewers, plain and simple. The biggest argument coming from the advertisers however is that users who “TiVo” a show are less likely to watch the advertisements. OK, that may be the case, but how about all the people who watch TV live and then get a drink or go to the washroom during commercials? The fact that commercials aren’t watched isn’t a problem restricted to PVRs / DVRs, it’s a problem with the advertising industry as a whole. […]