A new study conducted by Accenture finds that technologies that enable ad-skipping through commercials, along with on-demand video services, are expected to weaken TV ad revenue growth through 2009.
What a surprise.
The consulting firm projects TV ad revenues will grow about 3 percent annually through 2009; other industry projections put growth at around 6 percent. Accenture's findings include revenue for the broadcast networks and cable channels. The most aggressive industry projections are for nearly 10 percent revenue growth. Accenture's estimates forecast nearly $13 billion less revenue growth than the average industry projections.
Accenture based its findings on the projection that 40 percent of U.S. homes will have digital video recorders by 2009. About 8 percent have DVRs now. The analysis concludes that consumers will skip about 22 percent of all TV ads in five years, versus 2 percent currently.
If the projections bear out, it kind of makes all the bally-hoo over the broadcast and cable upfronts, well, kind of ridiculous. Wouldn't it be better if advertisers put their money elsewhere, like into wireless, online, or out-of-home media? TV is so over.