• by David Goetzl , May 5, 2006

Ad-skipping via DVRs could cost networks $8 billion in revenue this year, according to a new report by JupiterResearch. The research found that 53 percent of DVR users skip commercials--a figure below what others have estimated--but nonetheless, if that group skips ads 100 percent of the time, $8 billion of the estimated $74 billion television ad market in 2006 could be lost.

JupiterResearch recommends that networks work with advertisers to develop a new model that delivers messages, even with the ad-skipping technology.

"The $8 billion segment of ... TV advertising revenues potentially at risk due to DVR commercial skipping is not a foregone conclusion, but reworking ads to leverage the unique DVR experience could open new avenues of creativity and relationships with viewers," said David Schatsky, president of JupiterKagan Research.

The report is called "The DVR Dilemma: Managing Consumer Behavior."