Tivo To Also Offer Ads Your Way
FangVT writes "InfoWorld is reporting that in mid-2006 Tivo will begin allowing subscribers use keyword searches to look for information on specific products or services. The article does not contain much information but ultimately says 'Throwing in lots of hedge words to soften the idea of advertising once again mingling with TV content, TiVo described the service as non-intrusive, relevant, interactive advertising on an opt-in basis.' Tivo's own press release says, 'For the first time, advertisers will have the ability to deliver television advertising, on demand and targeted to consumers, without the limitations of traditional television media placement.'"
1) The ad service will be opt-in, but how much do they plan on nagging customers to do so? And who wants to be nagged about having ads, anyway, especially if you bought the thing to avoid them?
2) Targeted ads are certainly more effective, as Google has shown, but it's still advertising in a space buyers have come to expect no ads or ad-skipping.
3) TiVo built the entire model of PVR around the ability to skip ads and record shows more simply than on a VCR. They could do serious damage to their brand image if they embrace advertising after professing to help people avoid it.
While I'm glad they plan to make it opt-in and targeted, I'm still skeptical that they'll find profit at the end of the advertising rainbow by alienating their customers.
Under capitalism man exploits man. Under communism it's the other way around.
I'll direct you to this helpful timeline for capitalism:
Step 1 - Free, no ads
Step 2 - Free, with ads
Step 3 - Pay, no ads
Step 4 - Pay, with ads
Tivo is between steps 3 and 4 right now. As with every other service, it will soon be at step 4.