All Major Networks Make DVR Appeal

[korsjs]

In an unusual move, representatives of the six major broadcast networks will hold a joint press conference at NBC headquarters here on Wednesday to present their case for why advertisers should include DVR playback viewing as part of their media buys.

Nielsen Media Research next month begins tracking DVR playback data in its daily ratings reports. NMR is a unit of Mediaweek parent company VNU.

Excluding joint telethons for disaster relief, this is believed to be the first time all six networks (ABC, CBS, NBC, Fox, UPN and The WB) have made a joint presentation on an advertising-related issue. Their willingness to cooperate is an indication of just how important DVR has become as a potential revenue source.

The move comes just a week after Interpublic Group media buying arm Magna Global declared that it would not consider DVR playback viewing when it negotiates for TV time in next year's upfront market, citing commercial skipping by viewers, among other reasons.

While DVR penetration is now estimated to be only about 8 million TV homes, and playback viewing is estimated to be only a small fraction (less than 5 percent) of the total TV audience, both sides believe it is important to address the issue before the DVR audience reaches critical mass in the next few years.

http://www.mediaweek.com/mw/news/networktv/article_display.jsp?vnu_content_id=1001480178

 

[Sean Mota]

It made it back (the thread)...

 

[korsjs]

yep, for some reason the other thread was a issue with what happened the past couple of days. thanks for taking care of the other one.

 

[Sean Mota]

from tvweek.com

Networks Minimize Impact of DVRs on Financial Model
By Jon Lafayette
Network executives say recent research suggests that the use of digital video recorders such as TiVo is resulting in an increase in program viewing and advertising impressions, rather than threatening the business model for commercial broadcasting.

At an unusual multinetwork press conference Wednesday conducted by Alan Wurtzel, president of research and media development at NBC Universal, and David Poltrack, executive VP of research and planning for CBS, and attended by the research chiefs for Fox, ABC and The WB, the networks tried to counter arguments by ad buyers that DVR viewing should not be included in the audience they pay for when they buy commercials.

Nielsen Media Research will begin releasing data Dec. 26 on viewership that includes same-day DVR viewership and seven-day DVR viewership in addition to the current ratings numbers. (All of the figures include VCR recording.) Some ad buyers said they will not accept numbers that include DVRs when they negotiate future ad buys. But the networks argue that the DVRs increase viewership of television, especially viewership of the top-rated network shows. Prime-time series are showing a 4 percent increase in viewership in seven markets studied by Nielsen. And the networks say that as more "normal" viewers get DVRs-as opposed to very early adopters and media geeks-the amount of commercial avoidance is dropping.

"Right now there seems to be kind of an urban myth that anything that's viewed on a disk winds up taking commercial effectiveness down to zero, that it basically has absolutely no value and as a result it suggests that advertising through the DVR winds up being irrelevant. And the reality is that that's wrong," Mr. Wurtzel said.

"The DVR is going to enhance, increase the viewership to the major network television programs," Mr. Poltrack said, "and it is going to increase the amount of advertising exposures in those programs, because offsetting the 1 [percent] to 3 percent loss due to commercial fast-forwarding will be anywhere from a 4 [percent] to 8 percent gain as penetration increases in total viewership."

Which data stream the networks plan to use for ad sales and viewership guarantees was not discussed at the press conference. Mr. Wurtzel said the executives were allowed to discuss research but not business plans because of antitrust issues.

 

[Sean Mota]

Ad buyers are correct and network folks are incorrect. They just want to keep collecting their money even though commercials are being skipped.

 

[Bob Haller]

FF thru commercials......

Networks are dreaming!

wonder what they will do when long term studies show commecials are being skipped?

this might bring down network tv

product placement during shows, like pass the box of the new kellogs corn krispy cereal is going to be tough and make syndication harder.

products change fast

 

[riffjim4069]

Believe it or not, my wife will often watch commercials and replay the ones she likes. I've seen other women do it too. Perhaps the networks should be telling advertisers that DVRs will lead to MORE commercial watching among women.

I love my Dish 942. In a pinch, I've been known to skip though an hour long show in 20 minutes and still achieve an enjoyment factor of better than 80%. One way they could improve the 942 would be to add playback options for PIP so I could simultaneously fast-forward through two events.

 

[TNGTony]

I know that commercials that catch my eye get my full attention and I will even go back to the beginning of a commercial I am interested in.

Also when I am "zapping" commercials, I usually know what it is that I am zapping so the message is getting to me in that 1/4 second. When I zap commercials my thoughts are "Toyota commercial, Coke, Drug, drug, promo, promo...wait..look the new Lost ep is 65 min long..I have to change the timer..., news update, local Kroger commercial, local ford commercial, damn this is a long break..glad I don't have to sit thought this, promo, promo, -program is back!

Total elapsed time, 10 seconds.

So I do get the message or at least the brands.

See ya
Tony

 

[Hall]

To some extent, why do they care ?? Nielsen still reports that "X" number of people watched the show, which the networks take to the advertisers.

I'm not going to stop buying products (that I already buy) because I don't see their commercials on TV anymore. Then again, I might miss new products.... Co-workers or others have often asked "did you the blah-blah commercial ??" and my answer is almost always "nope, we don't watch commercials" (we watch almost everything "delayed").

 

[Stargazer]

The future DVR -> Advertisements throughout the whole program that show up just like banner ads on websites where they show at the top, bottoms, sides, or all of the above. Stations/companies could offset costs of live/IPTV by having commercials like that. There would be more ad placement as a result and this could actually bring in more revenue instead of less. This could bring a market for FTA but on the internet in the form of IPTV or maybe on the satellites even if you buy the particular boxes that are required to view those channels which will have the advertisements in such a way.

 

[Bob Haller]

they could also sell a commercial free version, and thats already started.

at some point network tv will be irrevelant, or perhapos obsolete