Will increased DVR use cut into TV advertising revenue?


Many people watch the Super bowl partially for the commercials. During this time the commercials are funny, clever, and most importantly new. This is usually a time when people come together and party and enjoy socializing about the new commercials they’ve witnessed. However on a regular day coming home from work or school and turning on the DVR to watch your favorite shows, commercials are not on the agenda. First of all they all have been seen millions of times, and most are not clever or funny. It seems that the TV networks will not be affected because the commercials were aired and therefore the revenue would still come to the networks. So I guess the question is whether or not the consumer watched the commercial? But no one really knows if the consumer actually watched the commercials that were aired. I love the power to fast forward the commercials. In fact I rather record all of my TV shows and speed right through the commercials. I recently switched from Comcast to AT&T and received a DVR for the first time since its invention. I was so amazed that I could pause live TV, like sport games, and I now control the replays. It’s wonderful! I also am able to go to church during football season now as I am an avid Bears fan and refused to go to church during football season unless the Bears played at night or on Monday. Ted Harbert, the chairman of NBC, expressed his distaste over using DVRs to skip commercials by saying, “This is an insult to our joint investment in programming, and I’m against it.” I wonder if Mr. Harbert watches commercials at home while enjoying a movie with his family. Shouldn’t the people have a choice whether to watch the commercials? Why is it that Mr. Harbert appears to be against television freedoms from commercials, does not NBC still get paid for airing the commercial? If I could not skip the commercials using my DVR, there is no guarantee that I am watching the commercials anyway. Is there? Well I love the power to speed through commercials and I would not trade in my DVR for nothing and I think Mr. Harbert is wrong!

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