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HOME • MANAGE SUBSCRIPTIONS • MEDIA KIT
Network-DVRs: Speeding TV Commercial Changes
by Wayne Friedman, Wednesday, July 1, 2009, 4:00 PM

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Fast-forward those DVR estimates and all that turmoil they can bring to TV advertisers. How much does the Supreme Court decision concerning network-DVR change the game?

If TV networks and advertisers were worried about the fast-forwarding of commercials through DVRS, just think about what happens now that DVR technology becomes easier to get into the home.

The Supreme Court decision not to hear TV studios' and networks' appeal of a lower court ruling on remote DVRs effectively gives all cable operators the ability in put network-DVR systems into their cable operations -- and quickly.

The bulk of network-DVR technology will sit at the cable operators' head-end, saving cable companies millions from no purchasing, installation, or servicing of DVR units in the home.

Cablevision wants to start up network-DVR technology by the end of the summer.

How does that affect TV in the near term? Estimates are that  relatively stagnant DVR penetration, now at 32% of all U.S. TV homes, could easily zoom pass 50%.

TV research has already shown overall viewing increases with DVRs -- which also includes some additional viewing of commercials. But, as we all know, commercials are also fast-forwarded to a greater degree in DVR versus non-DVR homes.

TV programmers made a quick move in suing Cablevision. But in the background were TV marketers, silent rooting for the studios to prevail. Now TV marketers' lives will be more complicated -- and in a relative hurry.

One factor possibly slowing things down: cable operators may not want to pay the capital expense in network-DVR technology. But given cable operators' increasing desire for an edge over satellite TV distributors, it'll be hard to resist.

More and more, TV cable subscribers want better home technology -- cheaper ways to manipulate TV programming and content. It's not just about operators charging more per month, but keeping cable subscribers on cable versus serving them on a plate to a telco or satellite video distributor.

Network-DVR technology won't be the only quiver needed for cable operators to compete -- easier Internet navigation, for example, will be demanded as well.

But right now, in the short term, it's a bull's-eye.

 

 

18 people recommend this article. 

2 comments on "Network-DVRs: Speeding TV Commercial Changes"

  1. Frank Caruso from RobnCaruso Sales Associates
    commented on: July 02, 2009 at 11:52 AM
    What's the big deal! There are channel surfers who surf the airwaves as soon as commercials come on. There are snackers who go to the fridge. Then there are those who use that time to go to the bathroom. If these advertisers want to keep a captive audience, create a locking type chair and keep your viewers prisoners also!!!

  2. Jon Findley from Smart TV
    commented on: July 01, 2009 at 5:02 PM
    Broadcasters are non-players in the DVR space, and this should not be the case. The big mistake was made years ago, when stations provided their signals to cable and satellite but never sought a direct relationship with the viewer. The cost of the broadcast facility and over-the-air signal now feeds cable headends and uplinks at the great expense of the "last mile" to the home. All of the revenue streams that are available to cable and satellite operators are blocked to the broadcaster. That could change. There are several set-top box alternatives if broadcasters could just see their way past quarterly pacing reports long enough to think about their future/survival.

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WAYNE FRIEDMAN
  • Wayne Friedman is West Coast Editor of MediaPost.



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