TV networks now say digital recorders increase viewers

[nitstalker]

Thought this was interesting... Seems that the broadcasters are starting to love the DVR's now... From Broadcast Communications news emails:


TV networks now say digital recorders increase viewers
Dec 13, 2005 8:00 AM, Strategic Content Management e-newsletter

Back in the mid 1970s, television and movie executives predicted dire harm from the arrival of home video recording. Of course, the opposite proved true, increasing viewers and creating the booming new home video market.

More recently, executives predicted similar fallout from digital video recorders. Any device that allowed viewers to skip the commercials and watch shows at their leisure had to bad. Right?

Wrong.

Six major networks have issued a new report that says DVRs actually boost television audiences. CBS, ABC, NBC, Fox, the WB and UPN are now trying to put to rest their earlier claims that DVRs will undermine the commercial value of broadcast television.

The networks now say DVRs lure viewers who might otherwise miss shows when they first air. “For most of the top television programs, the audience will be greater for these programs as DVR penetration increases,” said David Poltrack, head of ratings research for CBS. “The DVR is going to increase viewership to major network television programs.”

Reports said nearly eight percent of U.S. homes use a DVR and that homes with a DVR watched 5.7 hours of television daily compared with 5.1 hours for homes without a recorder.

As to the contentious issue of commercials, the nets reported that 90 percent of viewers claimed they skipped all or most commercials when they watched a show played back on DVR. However, the networks’ research showed 58 percent paid attention to the commercials in a fast-forward mode and 53 percent have gone back to watch an ad that interested them.

 

[TNGTony]

Gee... I think I posted something like this about my vieweing habits 3 years ago! Nice to see these guys starting to see the light!

See ya
Tony

 

[riffjim4069]

Yes, I can now watch an hour-long show in 35 minutes. Love that HD DVR!!!

 

[SaltiDawg]

...
As to the contentious issue of commercials, the nets reported that 90 percent of viewers claimed they skipped all or most commercials when they watched a show played back on DVR. However, the networks’ research showed 58 percent paid attention to the commercials in a fast-forward mode and 53 percent have gone back to watch an ad that interested them.

I think this is the most important point. Even if a network could claim a 100% Market Share for a show, a potential sponsor is interested the number of households that will actually view their commercial. If the sponsor believes that a large portion of the viewing public will never see his commercial, that has to enter into the sponsors deliberation.

Another factor that I don't believe I have seen discussed is the issue of when the commercial will be seen. If for example Sears wants to advertise its Saturday morning 20% off sale between 7:00am and 10:00am and if they believe that many who watch that Friday night hit show will DVR it for later viewing, that consideration should enter into their decision whether to advertise on Friday night for the Saturday AM sale.

 

[LER]

I know when I'm skipping commercials, If the ad (or the piece that I see) looks interesting, I'll watch it.

Maybe they are finally starting to "get it".

LER

 

[ralfyguy]

Actually when you record a show, you already technically "watched" the WHOLE show including the commercials. If after the recording you actually watch the show, and skip commercials, it doesn't make a difference to the TV Networks. See what I mean?
In fact, to go even further, if you have a DVR625, or other dual tuner DVR's, you theoretically could "watch" 2 shows at a time! TV1 watching and TV2 recording at the same time. To the TV Broadcasters this would appear as if you watch 2 programs at a time. Or just turn on TV1 and TV2, turn off the TV's and let it run. They don't know you have the TV's off, the receiver still sucks 2 shows out of the network, no matter what.
IMHO this is exactly WHY they like the DVR's now, because alot of people do the watching one show and recording another off a 2nd tuner at the same time thingnow. Years ago, people didn't have such devices, except VCR's, but alot of people back then didn't use the VCR's that way, or had them hooked up wrong so they couldn't.
To me, it makes all sense.

 

[nitstalker]

Actually 'watched' programs is what is physically viewed by the viewers eyes... they go by the Nielsen Journals and I believe TIVO has some interactivity that lets them see viewing habits... Ppl with Nielsen Journals (or boxes) record in their journals what they watched on television whether it is live, taped, movie rental, etc. Thats what they are concerned about...

Also one good thing I think these reports do is give the consumers a little more backbone against the Broadcast Flag in DCMA... If the users now are getting the networks in their back pocket might be a little more persuasive to help things out in keeping the MPAA out of our living rooms.

 

[riffjim4069]

I know when I'm skipping commercials, If the ad (or the piece that I see) looks interesting, I'll watch it.
Maybe they are finally starting to "get it".
LER

I rarely watch commercials, but my wife will see something she likes and watch it 2 or 3 times. I've seen some commercial with a bunch of babies like a zillion time already. Oh, and my 3 year always has us play back commercials with the Pillsbury Doughboy. Talk about your free advertizing. Perhaps advertisers should start writing better commercials.

 

[Frank Jr.]

I don't time shift everything. When I do I skip the commercials, or try too. However it seems as though most commercials are so repetitive you will eventually see them. I can't count how many times I have seen that car commercial were the guys says good buy to his wife and skydives of the cliff to get to his car. When I see it now and I'm watching live tv I either go to the bathroom,kitchen or temporarily change the channel. No matter how good a commercial is if it is seen to many times it will eventually turn the consumer off. This happens to me a lot and I still skip commercials when I can. My point is that I don't think that DVR's are hurting advertising one bit.

 

[Frank Jr.]

I rarely watch commercials, but my wife will see something she likes and watch it 2 or 3 times. I've seen some commercial with a bunch of babies like a zillion time already. Oh, and my 3 year always has us play back commercials with the Pillsbury Doughboy. Talk about your free advertizing. Perhaps advertisers should start writing better commercials.

I have the Pilsbury Dough Boy Doll. It came with some pastry I bought a few years ago. If you want it I'll send it to you.

 

[nitstalker]

AH HA!!! That is the point in many campaigns, especially widely used on radio. If they annoy the hell out of you, they have still won. Even though you change the channel or whatever, you think about their product, and remember the spot. And when it comes time to buy a product, your mind will subconciously remind you about the product.....

I don't time shift everything. When I do I skip the commercials, or try too. However it seems as though most commercials are so repetitive you will eventually see them. I can't count how many times I have seen that car commercial were the guys says good buy to his wife and skydives of the cliff to get to his car. When I see it now and I'm watching live tv I either go to the bathroom,kitchen or temporarily change the channel. No matter how good a commercial is if it is seen to many times it will eventually turn the consumer off. This happens to me a lot and I still skip commercials when I can. My point is that I don't think that DVR's are hurting advertising one bit.

 

[goaliebob99]

want to get me to start watching commercals ??? put them in hd and i will

 

[SaltiDawg]

Actually when you record a show, you already technically "watched" the WHOLE show including the commercials. If after the recording you actually watch the show, and skip commercials, it doesn't make a difference to the TV Networks. See what I mean? ...

Not at all. Advertisers are careful with their money. If they become convinced that a large portion of their sponsored shows are being viewed after-the-fact with the opportunity to skip commercials, that will translate into less exposure of their paid message. Ultimately that will result in less value due to a reduced return for the advertising spot.

 

[Stargazer]

I just got some Nielson Tv Booklets right around Thanksgiving and filled them out for a week.

 

[Mr.Pinkeye]

I would think to an advertiser, the very people likely to have dvrs are the very consumers they would like to target, ie people who are willing to spend a little more.

 

[SaltiDawg]

I would think to an advertiser, the very people likely to have dvrs are the very consumers they would like to target, ie people who are willing to spend a little more.

Not if they believe, rightly or wrongly, that those viewers don't see the commercial.

 

[DishBacker]

want to get me to start watching commercals ??? put them in hd and i will

EXACTLY! I've rewinded 2 or 3 times to watch movie previews in HD... or just a commercial in general that I saw was in HD. 1/2 the reason I saw Narnia last night was the HD preview...

Too bad the movie theather wasn't a DLP 1080p theater. But that is another topic.

 

[jayn_j]

I remember that when VCRs first became popular, the advertisers made the same complaint. It died down in a couple of years and then I noticed that when I fast forwarded the VCR I would see that the commercials had changed so that I would see the product flashed 4 or 5 times in quick succession only when played at fast speed. They learned how to adapt.

When I do skip on the DVR, I get 6 quick impressions spaced 30 seconds apart on the typical commercial break. I don't think it will be long before you see that the 5 seconds surrounding the 3 second skip interval becomes valuable for putting out a catch image.

People are saying it already. They go back for a good comercial. How did they know, unless they were paying attention as they were skipping.

 

[SimpleSimon]

People are saying it already. They go back for a good comercial. How did they know, unless they were paying attention as they were skipping.

Correct! When you are using the 30 second skip you MUCT pay attention so that you know when you're back to the show!

The most valuable time slot now is the last 10 seconds just prior to the show resuming. Have you noticed on some stations that what used to be local filler there is now a commercial - the filler ("watch the ... on news at 10") is now in the middle of the break?

 

[jayn_j]

Have you noticed on some stations that what used to be local filler there is now a commercial - the filler ("watch the ... on news at 10") is now in the middle of the break?

Good Point. My wife just noted that a lot of people are actually interested in the news teaser as well, and that she will go back to watch it, thus adding another 10 second window in the middle of the break. You generally know which break has the teaser, so you can watch for it.