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Will TiVo Destroy Ad-Supported TV?

windowpain writes "According to a column in Television Week, the increasing popularity of digital video recorders will actually cause a decline in ad revenues in the next few years. 'The rollout of DVR-type technology ... will reach critical mass with 11 percent penetration of U.S. television households by 2005 and 15 percent by 2006...As a result, five-year earnings growth for TV station groups could fall from as much as 10 percent to as low as 4 percent.' Why? DVR users skip at least two-thirds of commercials and the 'collective impact represents a threat to revenue and cash flow growth that cannot be offset ... Fifteen percent DVR penetration implies that 9.1 percent of all ads would not be watched and that advertisers would be overpaying by 9.1 percent, or $6.6 billion as calculated from projected 2006 total ad revenues of $72 billion.' And another business model goes down in flames."

69 of 943 comments (clear)

  1. Nope by Anonymous Coward · · Score: 5, Insightful

    There are other ways to advertise on TV besides commerical breaks, advertisers will just have to adapt.

    1. Re:Nope by Anonymous Coward · · Score: 2, Insightful

      Probably won't work with the current TV model. A majority (most?) shows are made by outside producers and sold to the channel.

      Also, significant revenue comes from reselling (to other channels and other countries) or repeating shows.

      A show with an embedded ad is far less attractive to a buyer, as their employer won't make any money from that ad - the producer did.

    2. Re:Nope by leviramsey · · Score: 4, Insightful

      And you'll see more of a movement to sports programming where two things come into play:

      • The proportion of viewership watching on a time-skipping basis is likely less (especially when communal viewing (e.g. bars) is taken into account, though current audience measurements do a piss-poor job of that)
      • It's trivial to integrate the advertising into the content (beyond event-produced ads like boards on sidelines and sponsorship patches on clothing); CBS, for instance, was periodically digitally painting AOL 9.0 ads on the field during the Florida/Florida State game Saturday.
    3. Re:Nope by Anonymous Coward · · Score: 1, Insightful

      Absolultely, there are other ways to advertise. Product placement being one of them. Anyways, if folk are fast forwarding through commercials, couldn't advertisers just record an ad in slow motion.. Then when the viewer zooms through it, they'll be watching it as intended anyway.

    4. Re:Nope by walt-sjc · · Score: 4, Insightful

      That works great for brand-name recognition, but it's going to be a little harder for other types of advertising where new products or companies are trying to convince you to buy their products or services. The "why should I buy" part.

      That said, I already pay for NFL Sunday Ticket. The cost for a whole season is less than a pair of tickets, parking, overpriced food, beer, etc. for one game. I don't mind paying for something I enjoy. (Of course, going to a game is fun too, which is why I have season tickets as well...)

      On the flip side, there is not much on regular television (or even most pay stations) that's worth watching anymore. There are only about one or two movies worth watching on HBO a month for example. Netflix is a much better value.

      Regular television? Bah. Nothing there but mindless garbage like "Buffy" and "Friends."

    5. Re:Nope by aug24 · · Score: 4, Insightful
      Too right. I use a TiVo and I haven't taking in any advertising for over a year. I assume that we will move more towards one of
      • pay-to-view programmes
      • pay-to-view channels
      • blip-verts
      • embedded advertising.
      Only blip-verts could be more annoying than a traditional ad break.

      Justin.

      --
      You're only jealous cos the little penguins are talking to me.
    6. Re:Nope by KDan · · Score: 4, Insightful

      Maybe advertisers will be forced to think up *gasp horror* interesting adverts that people will actually want to watch! What a concept... Brainwashing could maybe not be as easy to achieve anymore??...

      Daniel

      --
      Carpe Diem
    7. Re:Nope by Znork · · Score: 2, Insightful

      Personally I've switched to buying entire series when they hit the right price on DVD. I barely see more TV than the short few seconds that it's on before the DVD is running.

      It's far more satisfying as you get to experience fewer annoying cliffhangers, no commercials and it's on when you feel like watching.

      These days I get more "programming" on my TV than I have time to watch, and it's the "programming" I actually want to see. No more "1200 channels and it all sucks".

    8. Re:Nope by 91degrees · · Score: 3, Insightful

      Seriously - I go months at a time without watching TV, but when I do, I'm usually interested in watching ads

      A lot of ads are quite good the first time you see them, but they get very wearing when you get them every single day. Even the briliiant funny ones get tedious.

    9. Re:Nope by Gulik · · Score: 2, Insightful

      Too right. I use a TiVo and I haven't taking in any advertising for over a year. I assume that we will move more towards one of

      * pay-to-view programmes
      * pay-to-view channels
      * blip-verts
      * embedded advertising.


      As it happens, I was reading over someone's shoulder on the train and saw a story in today's Wall Street Journal that ABC has contracted with an advertising firm called Mindshare to develop embedded advertising in their TV shows. Like I needed a new reason not to watch ABC.

  2. The only TV i watch is in DVD form. by heldlikesound · · Score: 4, Insightful

    If people are talking about a show, and saying it's really good, I ussally just rent the first season on DVD, if it's good, me and my girlfriend rent the next, and so on. We've watched all 4 seasons of the Sopranos, as well as the first two seasons of 24, Simpson I don't worry about, becuase i buy those box sets anyway. We also tune in for the occasional Discovery Channel feature, or some good college football, other than that TV is shite, but hopefully I didn't have to tell you that.

    --


    Cloud City Digital: DVD Production at its cheapest/finest
    1. Re:The only TV i watch is in DVD form. by corbettw · · Score: 2, Insightful

      We also tune in for the occasional Discovery Channel feature, or some good college football, other than that TV is shite, but hopefully I didn't have to tell you that.

      Um, TV is "shite", but you pay money each month for cable? (Discovery Channel is not available for free, ya know.)

      Personnally, I don't see TV as entertaining enough to pay someone $50 a month to get more channels, and another $20 to skip commercials. With seven broadcast networks (NBC, ABC, CBS, Fox, WB, UPN, and PBS), there's usually something on worth watching in the evening. If not, there's the Internet and books, or, dare I say it, interacting with other human beings. Someone willing to spend $70 every month on TV isn't living a very balanced life.

      --
      God invented whiskey so the Irish would not rule the world.
  3. Is this a good thing? by Glyndwr · · Score: 5, Insightful

    Now, I don't like advert breaks and I don't like the rampant commercialism they imply, but seriously: isn't this going to make a lot of TV unprofitable? So what happens now? Will less TV be made? Will good shows magically suceed and only bad shows not get made (fat chance)? Or will the overall proportion of "World's Blankiest Blank" shows increase (seems likely)?

    Perhaps DVD box sets are the answer.. but then again, if the only money was in the DVD release, why do TV at all? And anyway, Futurama sells by the truckload and that still got cancelled. I suspect the real answer is "new and insidious advertising methods". Hurrah for FCC-approved "cannot skip" bits, coming soon to a digital TV adbreak near you! And hurrah too for product placement! You must buy Pepsi, because Joey Tribbiani does!

    Not that I can see a way to put this genie back in the bottle, admittedly. Ah well, I guess we'll just have to wait and see what whacky adventures come next.

    --
    You win again, gravity!
    1. Re:Is this a good thing? by Anonymous Coward · · Score: 1, Insightful

      > Hurrah for FCC-approved "cannot skip" bits, coming soon to a digital TV adbreak near you!

      Hurra for reality; You can leave the room and get a snack and there is no fscking thing they can do about it!

    2. Re:Is this a good thing? by Jafafa+Hots · · Score: 5, Insightful

      It's very simple. When technology renders a business model obsolete, the obvious answer is to make using that technology a crime!

      --
      This space available.
    3. Re:Is this a good thing? by croddy · · Score: 3, Insightful
      The Tivo/DVR watchers are skipping the commercials because for the most part they are annoying. This should be seen as a strong feedback signal to the advertisers that their methods do more to annoy than to inform.

      oh, for a mod point.

    4. Re:Is this a good thing? by AllUsernamesAreGone · · Score: 4, Insightful

      You were rated funny, but given the behaviour of the industry to date, I'd actually say you're more insightful than funny...

    5. Re:Is this a good thing? by Kombat · · Score: 3, Insightful

      Perhaps Hollywood [...] might have to *gasp* INNOVATE, like everybody else to maintain a healthy profitable business.

      I'm sorry, but frankly I'm getting a little tired of this line. Plenty of industries have been doing essentially the same things for decades, and the tried-and-true models are still working. But some of the more IP-based industries are suffering due to digital proliferation.

      It seems to me that the "innovate" demand is often used as an excuse to justify copyright infringement. Now that we've finally found a way to circumvent your traditional business model and access your content without paying for it, you tell them to "innovate," rather than suggest that they might rather try to convince us to stop taking things without paying. They should "innovate" and find a way to block us from stealing again, until we find away around that roadblock too, at which point we'll simply advise them to "innovate" some more.

      Failing that, people will say, "well they should stop making such crap then." Sure, the new Nikelback CD isn't good enough to pay for, but it's good enough to spend time and effort downloading it for free though, isn't it. Ditto for Hollywood movies. "Matrix Revolutions sucked," they'll say, "I'm glad I didn't pay to see it in the theatre." They say it sucked, yet they spent how much time (and money) downloading it? They'll bitch about the $0.001 in connection charges it costs them to download a 40kb spam, but have no problems downloading a 700MB movie, as long as they don't have to pay for it.

      I guess they should just "innovate" (as long as it doesn't involve any technology to restrict your computer, car, DVD player, CD-ROM, or anything else, eh?), and stop making shows/movies that everybody else likes, and instead make more movies YOU like, right?

      Sorry, that's one of my hot-buttons. Mods, do your worst.

      --
      Like woodworking? Build your own picture frames.
    6. Re:Is this a good thing? by chthonicdaemon · · Score: 3, Insightful

      Imagine a patent free world. Rather, imagine a world where the automobile does not consist of only patented parts. Now imagine having an easy way of making automobiles at home for a fraction of the price asked by automobile manufacturers. This would make the automobile industry decidedly nervous, but would have nothing to do with copyright infringement. It would have to do with supply and demand.

      You mention that the IP based companies are suffering. This might be not because they are being screwed over, but because they were doing well in the first place due to lucky coincedence which procected their 'right' to profit. Unfortunately, people will always try to pay less for the same product. They will buy cheap imitation breakfast cereal that costs less than the original if it is not significantly different. They will buy cheap clothes if they are not significantly inferior to expensive clothes. This is the way of the consumer. This is why people go to sales and bargain-hunt.

      It seems that your respect for so-called intellectual property goes so deep that you are exhorting people to buy the expensive stuff, because of some moral obligation to repay the creators of their wares. This has never been the way of the consumer. A hard-working but unskilled woodworker could not charge more for his product because it took him longer to make, just as a skilled musician is not expected to ask less for his music which he composes for fun. They are forced to ask what the market will pay or not be payed at all.

      Where this is all going is that you need to innovate to make money from any endeavor. It is becoming more difficult to rely on the difficulty of obtaining alternatives in the entertainment industry, and they will go under if they do not respond. However, people will continue to seek out good deals and pay as little as possible for as much as possible. It's just human nature. Deal with it.

      --
      Languages aren't inherently fast -- implementations are efficient
  4. Nah... by Dunkelzahn · · Score: 2, Insightful

    I don't know if it could kill ad supported television really. VCR's have been out for years, with the ability to time-shift programs, and hit the ole fast-forward button on the remote. Just sounds like a bunch of speculative nonsense to me.

    --
    .
    1. Re:Nah... by Sancho · · Score: 3, Insightful

      But there's an ease of use coupled with the ability to record, watch, and fast forward all at the same time that makes TiVo and similar units an order of magnitude more dangerous than VCRs. Most of my friends with TiVos actually wait until about 10 minutes into their television show (20 for full hour shows) to watch, so that they can FF through the commercials. Traditional VCRs can't do that, because they're limited to either recording or playing back, but not both at the same time.

      Also, not having to change out tapes means I'm more likely to record more shows. I already do this on my computer. I almost never watch TV anymore. If there's something I'm interested in, I cap it, edit out the commercials, and then watch it while doing my nightly email/websurfing. Not because I want to steal TV programming, but because those commercials take up precious bits on my CD/DVD. Also, it's easy to set up a batch of encodes and walk away.

      Now a valid argument in place of yours is that people tend to tune out commercials if they even stay in front of the telly during them. But TiVo si a formalization of this process, which is what scares advertisers. Wasn't it some Turner executive that said that technically it was ok to go to the bathroom during commercials, but that having commercial-skip was pushing it too far?

  5. Is this a bad thing? by thesupraman · · Score: 4, Insightful

    So, 72 BILLION a year just for TV advertising, of which 90% is trying to convince consumers to spend as much as possible on things that they very probably hadn't even imagined they would ever want - and then to replace those with the newer model ever 6 months.

    Will anyone really lose too much sleep over this?

    Of course there will be a fight - how DARE consumers want to avoid being hearded like so many sheep! the very thought of it.

    Would it really be that bad to pay for the entertainment you want, rather than simply being fed the entertainment, and advertising, that they want to give you?

    Then again I work in TV, but very rarely watch it. Maybe I'm just plain wrong.

  6. Being Screwed by mphase · · Score: 5, Insightful

    The consumer is currently being screwed for television so cry me a river. Cable television was supposed to be ad free, that's why the consumer would pay. The additional cost of HBO and similar services illustrates that the dream of commercial free television is attainable. Television providers should stop shafting us long enough for us to pay for content we want without commercials, I'm sure that would offset PVR based losses.

  7. About time they get rid of ads! by Jonah+Hex · · Score: 5, Insightful

    It really makes me sick watching some of the older shows in re-runs due to the re-editting in order to squeeze in more commercials. Twilight Zone and Warner Bros cartoons come immediately to mind. And forget trying to watch movies on ad-supported stations, damn "Compressed for Time" and "Editted for Content" can bite me.

    Jonah Hex

  8. Yeah but... by Micah · · Score: 4, Insightful

    Wouldn't PVR recorders tend to watch the commercials for products they are interested in and skip the ones that would obviously not apply?

    And if they watched a commercial for a product they're interested in but missed a detail like an address or phone #, they could go back and retreive it.

    So overall, it probably won't be as big a loss as is stated.

    Now, if only advertisers would make commercials we want to see. Does anyone besides me make a mad dash for the Mute button every time Detrol's "gotta go gotta go gotta go right now" commercial comes on???

    1. Re:Yeah but... by TGK · · Score: 2, Insightful

      At one point there was a website called ad-critic.com. It's since gone over to a pay service (thereby demonstrating exactly how sick in the head people can be... they want me to PAY to see ADS?).

      Point being people would go to this site and burn precious bandwidth downloading advertisments! Some of the best adds I've seen were on that site.

      Point being, there are examples where people will go out of their way to see a really well done add. We've all seen the Honda "Rube Goldberg" add. Everyone remembers the Budweiser "Waz up" and it's countless variations. I still get a chuckle from the "Real Men of Genious" adds that Bud Lite is pushing right now.

      Some adds are good. Some suck. Drug adds in particular piss me off. At one point I started a list of drugs my TV had told me I need, but that I didn't know what they did. You've gotta ask yourself, can that be for anything OTHER than pissing people off?

      --
      Killfile(TGK)
      No trees were killed in the creation of this post. However, many electrons were inconvenienced.
    2. Re:Yeah but... by Col.+Klink+(retired) · · Score: 2, Insightful

      Not to mention that skipping 2/3 means they're still seeing 1/3. And since commercials tend to play in heavy rotation, they're probably still seeing most of the commercials.

      Besides, non-Tivo watchers aren't watching 100% of the commercials either. While you still "see" the commercial with a VCR, few advertisers have effectively altered their commercials to have any impact without sound and in fast forward. Not to mention the people that get up and leave the room during the commercial.

      Anyways, I've always said the networks use their bugs and crawls backwards. During the commercial, the screen should look like Bloomber TV with sports scores, weather, news and a commercial in the middle. That way, people have an incentive to NOT skip the commercial.

      --

      -- Don't Tase me, bro!

  9. I am not surprised by AmVidia+HQ · · Score: 2, Insightful
    "... the increasing popularity of digital video recorders will actually cause a decline in ad revenues in the next few years."

    why is that a surprise? Just like how the RIAA is dying (no BSD jokes here), business must adapt to technology. Technology has always changed society, adapt or you lose.

    --
    VIVA1023.com | Political Fashion.
  10. PVRs will make no difference.... by bmfs · · Score: 2, Insightful

    because most people grab the remote and flip to other channels when the adverts are on anyway...

  11. Profits are no Constitutional Right by Jesrad · · Score: 5, Insightful

    So what ? Television can sustain itself without the revenue from advertising ? Then too bad for the broadcasters, but they don't have a protected right to a profitable state of business. I, for one, am looking forward to the death of advertisement.

    --
    Maybe we deserve this world ?
  12. Maybe TV People Will Earn Realistic Pay by TheWanderingHermit · · Score: 5, Insightful

    Maybe all the super high salaries pseudo-actors in poorly written popular pabulum like "Friends" will have to adjust to reality and will only make as much as people in other professions. Or, worse yet, they might actually have to work for a living.

    The execs and everyone else are just scared because they have gotten used to being powerful and able to manipulate the rest of the world and they'll have to adjust to making what amounts to fair pay for the work they actually do.

    On the other hand, I like the model PBS uses. I like Nova, the News Hour, and a number of other shows on PBS, so I pledge regularly. The result is well written and well produced TV with quality I can count on every day of the year. Maybe other stations or cable channels will have to count on viewers paying directly in some way.

    I know most shows on the major networks would not be worth paying for, but I have no trouble paying for shows as good as Babylon 5, Farscape, or Monty Python.

  13. Good. Spam by midgley · · Score: 2, Insightful

    I find myslef less and less inclined to tolerate advertising on TV since spam on email became so irritating.

    I also liken product placement to search-engine placemnt and fooling, and I don't like that.

    In the UK we have the BBC, and if the commercial channels disappear, I can live with it.

  14. Remote control and VCR's didn't harm ad-based TV by Trurl's+Machine · · Score: 4, Insightful

    I am old enough to remember similar prediction in 1980's. Popularity of IR-based remote control units and taping TV programs was also supposed to harm advertising - but it didn't happen. The TV commercials have changed, they are now much more witty and provocative than in 1970's and earlier (a good example of this evolution are the TV ads of Coca-Cola - they were INCREDIBLY boring in 1960's!). It turned out that people are simply too lazy to bother with switching channels or skipping ads on tape. They will also be too lazy to use TiVo. Besides, if you are not lazy, you are not a good target audience for the advertisers - if you are active enough to put some effort into skipping ads, you are probably also active enough to make your own market research and you generally don't buy something just because you saw it on TV.

  15. Advertisers Have Largely Done This To Themselves by Maestro4k · · Score: 4, Insightful
    It's hard to feel sorry for advertisers or TV channels/groups/companies. They've done this to themselves in a big way. Look at the average commercial time per hour nowadays compared to even just 5 or 10 years ago. I know I can't stand to watch a movie on TV any longer since the commerical breaks are sometimes longer than the segments they show of the movie! (This really happened one night, the channel came back from 3 minutes of commercials to only play 4 minutes of movie, then straight back for 5 minutes of commercials. IIRC, this was The USA Network.)

    With things like that happening, they've created the market for TiVos, and helped expand it. If one of two things (or even both) happened, then TV companies would be fine. 1. Commercials need to be entertaining, not boring as hell, and 2. TV programs need to be worth watching and putting up with commercials (even if the commercials aren't entertaining.)

    I'm really surprised that they haven't figured this out already given that the Super Bowl has more people watching it for the commercials instead of the game. You'd think companies would realize spending more on a commercial that people will actually watch is worth more than spending less on a bunch noone will watch. As a bonus, people remember fun commercials, and the products better. That has to help create more demand for the product, and isn't that what advertising is all about?

    Still, I won't be surprised if this is another industry that'll take the RIAA/MPAA route of trying to get legal protection for their flawed business plan instead of fixing it. Oh joy, I can't wait until congress passes the DMAA (Digital Millienium Advertising Act) making it illegal to skip commercials, and requiring every citizen to watch 2 hours of commercials a week or they lose their cable/satellite connection.

  16. Actually, TiVo has a much more important impact by rcs1000 · · Score: 5, Insightful

    If everyone timeshifts, then concepts like Prime Time become useless; people watch the program they want, not the one shown at 8pm on a Tuesday evening.

    But there are major advantages to advertisers too. There is much better market segmentation; you *know* exactly how many, and what type of person watched your advert.

    It's not all bad...

    --
    --- My dad's political betting
  17. Please give me pay-for-TV by gad_zuki! · · Score: 5, Insightful

    I have a DirecTivo and am part of the 'bad people' who will help destroy annoying commercials. As a solution, please just sell me the channels/shows I want to watch. Why am I paying for fundie nutcases like Trinity broadcasting when all I watch is 6 different channels?

    This "one-size-fits-all" method of lots of channels for a large amount of money per month is failing, not just commercials.

    I'd rather pay a 20-40 dollar bill that lets me "subscribe" to 20 or so shows with the ability to view *anything* for the first 10 or so minutes (or maybe x amount of episodes). In other words I can channel surf all I want and purchase the stuff I really like. The purchased items would be just like my "Season Pass" items.

    Arguably, this dynamic will force networks to produce decent content instead of filler and better ways to squeeze in an extra half-commercial here and there.

    TV will have to go through 'napsterization,' the genie is simply out of the bottle. A smart cable or satellite company can lead the way and make lots of money, especially targeting the "Cable is too expensive" crowd who just want Comedy Central and 2 or 3 other channels.

    The networks won't like it, but its going to be either this or DRM forced commercial watching.

  18. Re:What, like movies? by DNS-and-BIND · · Score: 2, Insightful

    You forgot...James Bond, ever since Roger Moore retired, has been nothing but a shill for luxury brands. Heck, the owners of the Bond brand brag about it in Wall Street Journal interviews...

    --
    Shutting down free speech with violence isn't fighting fascism. It IS fascism!
  19. How about VCRs? by asciimonster · · Score: 2, Insightful

    I'm getting the CD vs. MC jitters here.

    But aren't VCRs used for the same thing? I usually do. Tape a show, and hit FF every time a commercial comes on. The only difference with TiVo is that it is easier to use... and it is new(er).

    Just look at the casette: Everybody could tape their favourite music. Nobody really made a fuss about The CD only made it easier to copy music (ok and in better quality) and it became a scapegoat. If you have a drop in revenue blame it on the CD-copying.

    Since TiVo's do not have better quatity than VCR's, isn't this the same thing happening all over again?

  20. Re:I don't get it? by vanillacoke · · Score: 2, Insightful

    When you record something on tape you fast forward thru it (you only go as fast as the forward mechanism on your VHS head). The 30second skip button OTOH happens instantaneously. Milliseconds on a HD. In the grand scheme of things they preferred you video tape their shows instead of Tivo'in it

    --
    The secret to getting modded up is to allways say i've got karma to burn in your sig..
  21. Re:I don't get it? by thynk · · Score: 4, Insightful

    Exactly! I own a TiVo with my dish (week 2 - still the newest toy in the house).

    Skipping over the commercials works great for stuff that's been recorded, but isn't very effective on live tv (you *could* pause it for 2 mintues then skip over them). About the only time I'll do any skipping on "live tv" is to play catch up if I needed to pause the program for some reason or another (potty break, g/f talking about something, feeding the little one, etc).

    Few nice features are the pause and slow motion buttons. They get as much use duing the victoria's secret commercials as the ff button gets during the rest of them ;-)

    --

    Good judgment comes from experience, and a lot of that comes from bad judgment.
  22. Re: Ironically by Black+Parrot · · Score: 2, Insightful


    > I find that skipping the programs to get to the commercials to be more interesting than the other way around.

    That's probably the best strategy for finding soft porn.

    --
    Sheesh, evil *and* a jerk. -- Jade
  23. Losses Transferred by Anonymous Coward · · Score: 1, Insightful

    Obviously they're just going to transfer their "losses" on to the consumer. Cable rates will get a hike. Then PVR's will magically become illegal, or HD streams will not be recordable so things will be back to normal with advertising rates, so to speak. Yet the cable rates for the end user will stay the same. So in the end, what appears to be a good omen for the consumer will end up costing us buckets of money, as usual.

  24. Product placement (in moderation) not so bad... by jrj102 · · Score: 2, Insightful

    I've read a lot of comments here expressing a fear that broadcasters/advertisers will resort to product placement in leu of traditional advertising oportunity. I for one don't think that product placements (when done in moderation) are all that bad.

    For example, I find it much less distracting when a character drinks a Coke than when he/she drinks an obviously generic softdrink.

    Bottom line, I think that this kind of advertising can be both effective and fairly harmless to the content if done right. (Not that I have a lot of confidence in the industry's ability to do it right.)

    The other thing is that I see a lot of people here saying that they think that getting rid of ad-supported TV would be good-- that they wouldn't mind paying for content. While I agree that profits are not guaranteed by the constitution, I DO think that free (or EXTREMELY inexpensive) television content is something I'd hate to see go. While most programming is CRAP, there's some good stuff to be found, as well as the occasional guilty pleasure. (Terrible shows that we secretly enjoy.) Would you pay for this stuff? Would you REALLY? Or would you find technical workarounds to paying while posting on /. about how the technical workarounds weren't hurting the industry?

  25. Re:What, like movies? by BiggerIsBetter · · Score: 2, Insightful

    No. I mean, 'I watched some of the above movies but they didn't make me want to go and buy stuff.'

    I've seen it written that if you notice advertising in movies, it's too obvious. I don't know if that's true because if you miss it, maybe you won't buy it later... but that aside, just because I see something doesn't mean I want it. Possibly that works on teens, but late-20's geeks need a little more. "Cool" isn't enough.

    --
    Forget thrust, drag, lift and weight. Airplanes fly because of money.
  26. Re:I don't get it? by kramer2718 · · Score: 3, Insightful

    Actually, I even skip the commercials when watching live TV without a DVR.

    It's called changing the channel until the commercial is over!

  27. Adapt - exactly! by mackstann · · Score: 3, Insightful

    The cable companies and television networks will lose out because their business model is ancient. Only in recent years have cable companies slightly innovated with digital cable. But digital cable sucks. Changing channels is laggy, and it's really not *that* much different from normal cable (at least compared to a tivo).

    To keep up with stuff like tivo, the cable companies will need to (gasp) compete with it. Come up with something that meets or beats the functionality, convenience, and price point of PVRs. But unfortunately I can picture what the cable companies will do instead: file lawsuits, use shady business tactics, etc. Oh well. While that might hold them over in the short- to mid-term, I think it would eventually catch up with them.

  28. Re:What, like movies? by Chris+Worth · · Score: 3, Insightful

    Btw - you may have misunderstood what's meant by subliminal advertising. It's not illegal, nor does it even exist.

    'Subliminal' advertising - in this case, flashing a logo onscreen for too short a time to be consciously perceived - happened once, as part of a carefully-controlled experiment, in one cinema many decades ago. It's never been used since except as a spoof. And no, product placement isn't subliminal - otherwise, walking down the street would count! (Look at all those BMWs and Toyotas driving past! Gotta get me some of that!)

    Chris

    --
    - Read fiction at www.espressostories.com
  29. Advertising Revenues by TiggsPanther · · Score: 2, Insightful

    Once again, it all comes down to the advertising revenues - usually of crap you don't want to buy.

    I gues it's yet another occurrance of new technology making Traditional Business methods obsolete.
    Money from subscriptions, OK.
    Money from License, OK.
    Money from advertising, OK. But choose one, dammit. Otherwise of course people are going to start either skipping the adverts, or using them for comfort breaks!

    When paying for the "privelege" of getting content, it gets annoying when not only do they bombard you with adverts, but they complain when you don't want them.

    Gods, earlier this year there was a program. I forget which, but have a suspicion it might have been the MTV VMAs. Every damn commercial break they ran the same damn advert for sanitary protection. Important product, perhaps. But, as a (single) man, it's hardly a product line that I really need (or want) to be persuaded to buy.

    And it doesn't stop there!
    I'm not quite sure why - possibly to do with a legal crackdown on toy advertising durings kids TV shows - but the kids channels here in the UK are often full of adverts for Financial Assistance (Loans, car credit, etc) or Charity Donations.

    The former are bad enough. That kind of stuff just has no relevance at all to the target audience.
    And the latter? Well I'm sorry, but I don't think a hard push of charity concerns to children (in the form of adverts) are appropriate.
    Teaching them at school/church/home/etc, fine. Guilt-tripping young kids halfway through an episode of Power Rangers or Digimon? I don't think so.

    I understand the importance of advertising. but you should at least play to your target audience. (Though, as I said, I think there's a UK law about toy adverts aimed at kids)
    It's like the banner ads on websites. Some are offering noting to do with the site, or stuff I couldn't care less about. but other sites (including /.) at least have banner ads relevant to the theme of the site. Like Webhosting and Geek Toys. :-)

    Now if only the advertisers/TV-execs would realise that the reason people ignore the adverts is 'cos they don't want what's being sold!
    You want advertising revenue? Advertise something your viewers actually want to buy.

    Tiggs
    --
    Tiggs
    "120 chars should be enough for everyone..."
  30. Don't they know the answer already? by Alex+Belits · · Score: 2, Insightful

    Just keep the ad prices as they are. Sure, it will mean that the ads are more expensive per viewers' time, but that's not the networks' problem, and not advertisers' problem either -- all that cost is passed to the customer.

    Don't tell me that less effective ads will mean that companies will choose to buy less ads and use those money to improve their products -- it's beyond ridiculous.

    --
    Contrary to the popular belief, there indeed is no God.
  31. Re:British TV by Anonymous Coward · · Score: 1, Insightful

    Good lord you're all nuts. I don't understand why the mere mention of the Television Licence sets of the paranoia alarm in preople like you. Oh no! People are required to pay a direct tax for a state sponsored service! Oh no! Tax avoidence is being detected! Oh no! The tax may occasionally be used to pay for a service I do not directly require! Oh the horror of modern living!

    Newsflash: People pay thousands of pounds in taxes every year, and it doesn't mean those people are living in Police States. The only difference between the Television Licence and an indirect Tax is that the TV Licence is collected directly and with much less overhead than an indirectly collected tax. Get over it and leave it to those of us who actually pay our licences to complain, if and when we want to.

  32. the biggest problem by CAIMLAS · · Score: 2, Insightful

    The biggest problem I see with this trend is that if it does kill traditional advertising, it will likely also kill smaller productions: both TV and film. If companies start to think that buying ads isn't financially profitable, then they won't buy ads, and only the biggest ticket items will get made due to the financial viability and/or the profit margin.

    Of course, there will be indie works still, but less so, since many of them have private corporate sponsors as well.

    --
    ~/ssh slashdot.org ssh: connect to host slashdot.org port 22: too many beers
  33. Expect new legislation soon... by rollingcalf · · Score: 2, Insightful

    I wouldn't be surprised to see a new bill written, and perhaps passed into law, that forces TiVo and all DVR producers to remove the fast-forward capability from all boxes manufactured after 200x. Or at least to disable fast-forward during commercials (using a "commercial broadcast flag" that reliably indicates what part of a showing is a commercial and what isn't).

    --
    ---------
    There is inferior bacteria on the interior of your posterior.
  34. TV Will Adopt by zentec · · Score: 2, Insightful

    This isn't as bad as it seems. First off, television has always been a license to print money and while the revenue growth slows, it's not going to be crimped off. There isn't going to be rampant adoption of Tivo in most households; if there were, it would have happened already.

    More importantly, the move to a 16:9 format will allow for even WORSE methods of advertising. We've all become accustomed to seeing 'bugs' in the lower quadrant of a screen, now they'll just have advertising on a panel somewhere on the screen.

  35. They are hiding the real problem... by sllim · · Score: 2, Insightful

    Yeah I know the add problem is big and scary and easy to digest. But the real problem should scare the hell out of the networks.

    When you get a Tivo there is no reason to watch crappy TV.

    Period.

    Seriously, why would I want to watch lowest common denominator TV when I always have something I enjoy at my finger tips?

    Seems to me that is the real issue, people that own a Tivo are much, much less likely to watch something 'cause nothing better is on'.

    Funny thing about Tivo and I, I watch a hell of a lot more HBO and pay TV then I used to.

  36. obligatory Mander reference by Onan+The+Librarian · · Score: 2, Insightful

    Sorry, I just can't leave it alone... In his "Four Arguments for the Elimination of Television" Jerry Mander points out that the more heavily advertised a product, the more the advertisers are aware of the fundamental fact that YOU DON'T NEED THIS PRODUCT. Advertising is ALL about creating need. If you believe you actually need Coke or Pepsi then you're already lost, "You are a slave, Neo"... Personally I despise the thing, and my life is enriched immensely simply by not watching it at all. In a nutshell, without televsion I have more time for everything else. Just my two drachmas, but I tell my students that every hour spent in front of that tube is an hour utterly wasted. Well, what's to be expected from a junk and throw-away culture if not junk and throw-away lives ? I choose better for myself. Frankly, I'm a believer in the motto "You can't be free if you watch TV"... Okay, you may now return to your regularly scheduled programming...

  37. Re:I don't get it? by Neil · · Score: 2, Insightful
    When it's conventionally taped, don't you skip the commercials as well?

    Yes - but only if you recorded the show with your VCR. It isn't so much the mechanics of being able to fast-forward through commercials that is significant about PVR technology - the significant thing is the change in viewing and recording habits that it tends to bring about.

    Recording stuff with a conventional tape based VCR is a pain (finding a tape to record on, making a note of which tapes have what on, keeping track of which tapes can be re-used, programming the timer, putting the recorder into timer-record-mode, not being able to use the recorder for anthing else - such as playback - once you've set it up to record something). VCR time shifting tends to be used for shows that you really want to see, but can't be in front of the TV set for, or which clash with other programming that you really want to see - it is a mechanism for handling exceptions.

    Recording stuff with PVR with built in program guide, wishlists, season passes, suggestions, etc, is actually easier than remembering to watch the shows that you are interested in on live TV, at particular times, on particular days. Once you have got used to it, PVR time shifting tends to be the preferred form for scheduling and watching TV. Experience suggests that TiVo users tend to stop watching live TV and time shift nearly everything - even stuff that they could have watched live if they had wished to.

    PVR viewers are therefore in a position to ad-skip during almost all of their TV viewing.

  38. Here is a briliant idea to help save TV ads... by jonwil · · Score: 2, Insightful

    Too bad the technology isnt there yet for it.

    Basicly, the idea is that the ads are targeted based on the viewer. For example, geeks are more likely to buy computer gear so they would get more ads for the latest PC gizmos. And housewives are more likely to buy things like cleaners so they would get more ads for cleaners, detergents and such.

    Better yet is if the viewer could choose the categories of ads they get (everyone would get the same number of ads but they would get a mixture from whichever categories they picked, perhaps with a requirement to choose at least n categories)
    Example catetories:
    Financial services (i.e. credit cards, home loans, bank accounts etc)
    Electrical (i.e. TV sets, stereos, DVD players etc)
    Movies (i.e. ads for movies that are in the cinemas or coming out on video)
    Junk Food (i.e. ads for hamburgers, chicken, subs, ice creams, chips, lollies etc)
    Health Food (i.e. ads for breakfast cereals & other generally healthy food)
    Boys Toys (i.e. things like GI Joe, Transformers, Pokemon, Star Wars, Action Man etc)
    Girls Toys (i.e. things like Barbie, Baby Born etc)
    Toys (i.e. things that are unisex like LEGO, Pool Toys etc)
    Music (although I suspect that music would be big enough to warrant a split up into things like Classical Music, Rock & Roll, Rap, Pop, Jazz etc)
    Technology (i.e. ads for things like MP3 players, Cellular Phones, PDAs, Computer Gear etc)

    Some ads might be in more than one category (for example, an ad for a McDonalds Happy Meal featuring Disney Movie toys might appear under Toys, Fast Food and Movies)

    The real looser would be those companies that advertize/sell things which you dont want and would never buy were it not for the pursuasive marketing campaign. For example, its doubtfull that many people here would be interested in Credit Cards & would probobly choose not to watch ads for them (I know I wouldnt, I dont have one and dont want one). On the other hand, its a good bet that at least some of the people (not necessarily here but in general) who arent interested in Credit Cards and who would not select to watch ads for them have been convinced by one of those ads to buy a credit card.

    Basicly, this problem essentially boils down to the fact that certain kinds of ads wont be selected by enough people (for example, its likely that kids will probobly all want to select "toys" and "video games" and "movies" and probobly "pop music" but who would voluntarily pick "finantial services" unless they were specificly looking for such things.

    Not to mention the case of things that you would never have thought of buying in a million years but which you decide to buy after seeing the ad (for example, someone who is not a classical music fan per se might not select "classical music" but at the same time that same person might be likely to consider going to a concert if they saw an ad for it).

    Another problem is the case where you already have something (such as a home loan) and have no plans to switch. Therefore, you would probobly not select "home loans" (say) and wouild be less likely to be sucked in by the "you already have this but the one we have is better, buy from us" marketing trick.

    Another problem is how to decide which category a given ad falls under. For example, what categories should a 15% off everything at kmart sale fall under?

    Plus, what about ads like "anti-drug" ads or whatever, do you really think that a teenage drug-adict is going to want to watch ads designed to help kick him off the habit?

  39. Yes, drive away the TiVo-owning demographic! by phillymjs · · Score: 3, Insightful

    I don't see what the big deal is. The networks are already handling TiVo in their own way.

    Yeah, they're driving away 18-to-34 year-old males, the demographic segment most likely to own a TiVo.

    How? Shitty programming that doesn't interest men. One lame reality show after another. Even the basic cable mainstays are sissifying their shows-- I used to watch Discovery and TLC a lot, now practically all they have are semi-disguised "decorating" shows and junk like "A Dating Story."

    The only network with shows I actually watch is FOX, and even they do dumb shit like "Skin"-- maybe it was an interesting show somewhat aimed at men, but you're not gonna beat Monday Night Football with anything acceptable enough to be run on broadcast television-- and you might not even beat it with Naked Lesbian Jell-O Wrestling.

    Spike TV actually has the right idea-- they ran a James Bond movie marathon during most of the holiday weekend, and unless it was Simpsons time or there was something more interesting on the History Channel, that's what I "watched" if I had the TV on while I was doing something else.

    ~Philly

  40. It's Official: TV is Dead. by Master+Controll+Prog · · Score: 2, Insightful
    The End of TV

    [ed. note: in the following text, former TV developer Master Controll Program gives his reasons for abandoning TV]

    When I stood for election to the TV core team nearly two years ago, many of you will recall that it was after a long series of debates during which I maintained that too much organisation, too many rules and too much formality would be a bad thing for the project.

    Today, as I read the latest discussions on the future of the TV project, I see the same problem; a few new faces and many of the old going over the same tired arguments and suggesting variations on the same worthless schemes. Frankly I'm sick of it.

    TV used to be fun. ...

    I'm sorry. I can't go on. It's too fuckin easy.

    Read the rest of this comment...

  41. Re:What, like movies? by ghjm · · Score: 5, Insightful

    Most advertising is not trying to get you to run out and buy a product today. Late-night TV carries "Call Now!" ads, but this type of advertising is not suitable for product placement. (After all, you're not likely to run out in the middle of the movie to buy a Land Rover!)

    Instead, the purpose of most advertising is to create or increase brand equity. The idea is to affect your thinking months or years from now, when you (or someone like you) are actually in the market for a new SUV. If your final choice is between a Land Rover and a Glurnmobile, you will presumably have a sense of familiarity and relative comfort attached to the Land Rover. It's not that you agreed with the points the ad was making, or that you felt particularly attached to the Land Rover at the time you saw the ad - it's that if you keep hearing about Land Rover over and over, through the years you will eventually accept that Land Rover is a longstanding and reputable brand of SUV. But nobody ever heard of Glurnmobile before today, so you will probably want to do a more careful analysis of the Glurnmobile product before you buy it. Which in turn means you're more likely to buy a Land Rover.

    Of course, in the automotive market, there are no Glurnmobiles. It's inconceivable that someone could jump through all the investor and regulatory hoops to bring out a new type of car, and not make sure people knew about it. Nevertheless, brand equity still depends on the amount of advertising and the length of time it has been going on. What do you think of Kia vs. Land Rover? What are your reasons for thinking what you think?

    Note that human beings are wired to defend their conceptual systems against (whatever they perceive as) assault. If you believe X and someone comes along preaching not-X then you attack them, or at least defend yourself. If you believe X and Y and someone comes along preaching that X implies not-Y, the effect is the same. So: Many Slashdotters no doubt believe that (a) Land Rovers are of higher quality than Kias, and (b) that their own thinking is not affected by advertising. I am saying that the major reason to believe that a Land Rover is better is in fact the advertising, particularly the length of time they have been advertising. This challenges (b) unless you can prove that Land Rovers are objectively better. Therefore it is to be expected that many people will jump in and insist that Land Rovers have variable (blurble) with intermittently assisted (gnashing of teeth).

    Instead, consider this: Insisting that you are unaffected by advertising is the same as claiming you have never been had by a troll. This is false: You are a social mammal with fairly predictable responses. This gives the trolls and advertisers their edge. No matter how l33t you may be, there's always a smarter troll (or a better advertiser) who has your number.

    -Graham

  42. Deregulation and Greed by Jack+Auf · · Score: 2, Insightful

    The crux of the matter, for me anyway, is the quantity not the quality. This has occurred as a direct result of deregulation to both television and radio. To alleviate the onslaught of television advertising I bought Tivo, for radio I bought an iPod car adaptor and simply stopped listening to anything other than NPR.

    During the 80's the average number of commercials run hourly was 10 to 12 when the federal government regulated commercial time. Since deregulation the average is about 20 commercials.

    I see three viable choices for the future:

    1) Change the compensation method. Harry Shearer had an item on his radio show awhile ago that it would cost about $280 annually from every TV watcher to do away with ads completely. Do something similar to what the UK and the BBC do now. It would give the content producers more freedom as well, no more sponsor pressure to change this or that.

    2) Cable companies need to change. ATM I pay about $80 for 250+ channels of crap I mostly don't watch and about 8 channels that I do. Let me pay $1-$2 per month for the channels I *do* want and pass the extra back to the networks that I support. The networks would then have more incentive to have better programming and less incentive for advertising. The cable company has to pay a monthly fee for every channel they carry - let the consumers decide via the marketplace which are worthy of survival.

    3) Tivo/RePlay and FF past the commercials if networks don't get a clue. I suspect sometime soon we'll see a major television set manufacturer embed a Tivo, or a Tivo like device, in the set itself.

    If the content producers and networks think they can get around this with product placement they are just wrong. In my house we have a game: anytime we see product placement in a show we all shout "Product Placement!". The key to stripping its power is to be aware of it (and making fun of it also helps).

    --
    "They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety" - BF
  43. Banner adverts by gilesjuk · · Score: 2, Insightful

    Maybe banner adverts will be used?

  44. Re:I don't get it? by Uma+Thurman · · Score: 2, Insightful

    Forgive me for saying this, but why did you get a TiVo then?

    I thought that everyone was like me and bought the TiVo specifically so they could avoid the advertisements.

    If I never see another BOWFLEX commercial it would be too soon.

    --
    This is America, damnit. Speak Spanish!
  45. Re:What, like movies? by DNS-and-BIND · · Score: 2, Insightful

    It's not the jet-set crowd. BMWs and superpremium liquors are easily affordable by the merely affluent. Heck, you can get a BMW for $25,000! For that small price, you can pretend that you're elite. You can buy a $200 bottle of tequila, as well, even though the major tequila-making families in Mexico admit there is no difference between it and the $40 bottle...however their customers demand such a product, so it exists!

    --
    Shutting down free speech with violence isn't fighting fascism. It IS fascism!
  46. Re:Cable on demand services by amyhughes · · Score: 2, Insightful
    If they offered network shows without commercials, I'd be willing to pay like 50 cents to watch each one.

    You're dicounting the probability of ad creep. Been to a movie lately? Despite paying $9 for the ticket you still get commercials. Not just for coming movies but for soft drinks and websites.

    Why? Because the theater chains think that despite paying $9 for a ticket you'll be willing to watch a couple commercials. When you get used to that they'll find more ways to slip in some ads. When you get used to those they'll add a couple more. Repeat until the medium is useless.

    Withness cable TV. It was supposed to have fewer ads because it wasn't free, right?

    So they give you on-demand TV shows and you pay 50 cents per half-hour show. That'll last till they get some market share, and then there'll be an ad or two. Short at first, so you won't object too much. Then they'll get longer. Then there'll be a couple more. Soon enough you're paying 50 cents for 20 minutes of programming.

    It's also only a matter of time before you must watch commercials from tivo. Not because broadcasters need you to watch them but because tivo can make another buck making you watch them.

    Amy

  47. Re:Oh my god! They killed Transformers! You b**tar by Galvatron · · Score: 1, Insightful
    Actually, I think it should be noted that Transformers was a prototype for the TV series as toy advertisement concept. Previously, there had been regulations preventing certain tv show/toy tie ins. After the elimination of those rules, Transformers got started. There's a reason that they killed off most of the existing Transformers and replaced them with new ones in Transformers: the Movie, to sell more toys. GI Joe, of course, was similar in terms of trying to create as large of a cast as possible to sell more toys.


    Believe me, Transformers absolutely was the Pokemon of its day. They just hadn't gotten things quite as perfected back then.

    --
    "The question of whether a computer can think is no more interesting than that of whether a submarine can swim" -EWD
  48. If TiVo "destroys" ad-supported TV... by Guppy06 · · Score: 2, Insightful

    then it's the advertisements that ultimately did it in. If the commercials were half-way interesting or entertaining, people wouldn't want to change the channel or use the time as a bathroom break. All TiVo does it let consumers express their displeasure with incessant, inane advertising much more loudly.

  49. Fatal statistics flaw ... by arantius · · Score: 2, Insightful

    Statistics can be great. They can also be utterly totally horrible. Sure, perhaps one day, 15% of people will own and use a DVR. But how many of those people previously owned and used a VCR?
    I've used my VCR for time shifting for years, and I always skipped the commercials there. I doubt 15% of people that have never used a VCR are going to purchase and use a DVR.

    Moreover, the 15% prediction number is fluffed up. Oh so many digital cable and satellite providers give you a DVR right in the box they make you use. I wager a significant number of people with DVR boxes do not use them.

    --
    Health is simply dying at the slowest rate possible.
  50. I just don't get it. by jbarr · · Score: 2, Insightful
    From the article:
    "As a result, five-year earnings growth for TV station groups could fall from as much as 10 percent to as low as 4 percent."

    Is it just me or does everyone seem to be missing this? People, they are not losing money! Their growth is simply being slowed. Sure, they aren't making as MUCH money, but they are still making money and growing! I'll be the first to admit that I'm no economist, but it just kills me that we get sucked into this kind of FUD. I just don't get it. What am I missing?
    --
    My mom always said, "Jim, you're 1 in a million." Given the current population, there are 7000 of me. God help us all!