PVR stats US and worldwide

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Yankee, Instat, and Jupiter are all predicting big changes for TV viewing due to the popularity of PVRs. You have to take this stuff with a lot of salt, in my opinion.

Adi Kishore, Yankee Group Media & Entertainment Strategies analyst, estimates that by 2007, nearly one-fifth of all U.S. homes will be able to fast-forward TV commercials, eventually disrupting the entire value chain for television. The report details the impact the PVR will have on the television advertising industry, noting that roughly $5.5 billion in revenue — or 11 percent of their TV ad budgets — will be lost by 2006 when more than 19 million U.S. homes own a device.

We all know the advertisers and broadcasters will do anything not to lose that revenue that Kishore claims could be lost.

Remote Power: Can PVRs Kill TV Spots?

by Gen Kanai September 29, 2003 in News

Comments

Of course, PVR users all know that PVRs don't kill commercials; people kill commercials. For instance, I routinely stop to watch IBM's clever "e-business on demand" commercials, even when I'm TiVoing something. Same for movie previews that look interesting. I'm waiting for a network to do what Discovery did some time ago on DirecTV: offer video-on-demand for their regular programming. For example, Discovery was selling views of "Inside an Aircraft Carrier" for $0.99. With a la carte programming, broadcasters can have their revenue and still sell ads for commercial-supported programming if they want to.

Posted by: paul at Sep 29, 2003 6:37:44 AM

I agree with Paul. I watch a lot of commercials even with TIVO. Admittedly not all of them but even non-DVR people don't watch them all.

Posted by: Ron at Sep 29, 2003 7:34:40 AM

Exactly! I can't even begin to tell you how many DiTech commercials I have skipped, yet I too watch the IBM ones as well as the occasional Geico ad. Most of the Geico ad's are stupid, but one caught me completely off guard, the hair loss ad that morphs into a Geico ad.

Now, the more important question... Do any of these ads make me go out and buy the product. Well... In the case of Swiffer... Yes. I hadn't heard of Swiffer until the ads and thought that it would be worth a try. The IBM ads, na. That ad is only going to grab IT people that are watching. Pepsi Vrs. Coke? They can show me 1000's and 1000's of ads there, I'm still going to drink Coke...

TiVo and other PVR's have something that advertisers should be looking at a lot. Which commercials were skipped and which were watched. It shouldn't be hard to figure out why they are watched and adjust accordingly.

Ah well, I could go on and on... :)

Posted by: Dave at Sep 29, 2003 9:09:06 AM

I TiVo'd The Restaurant (Bravo) the other day and the entire opening sequence is an American Express and Coors Light advertisement. That made me laugh.

The series on the other hand, yick.

Posted by: Derek at Sep 29, 2003 11:52:23 AM

The revenues won't be lost...these companies will find another way to advertise. The traditional 30-second spot may go away, but there will be other methods taking its place. Todd Lokken.

Posted by: Todd Lokken at Sep 26, 2005 11:17:56 AM

PVR stats US and worldwide

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