February 24, 2010

New evidence from viewer research in the UK suggests that owners of digital video recorders (DVRs) time-shift an average 15% of their TV viewing, skipping 70% of the commercials during playback (by fast-forwarding through the breaks). Extrapolating current usage trends and DVR penetration trends, Screen Digest modelling suggests that exposure to linear advertising in the UK could be reduced by 6% by 2013 as a result. That is not, per se, a significant threat at the scale of the entire TV industry but it may require adjusting the business model for some categories of channels that rely on heavily recorded genres like drama. Overall, Screen Digest believes DVR usage will not cause the end of linear spot advertising but believes broadcasters should prepare themselves for heavier DVR usage in the future and explore the opportunities offered by enhanced or alternative TV advertising formats.

Tables and charts included:

• DVR homes in the UK
• DVR Penetration in Key Markets (Pay TV only)
• Time-shift Viewing Among UK DVR Users
• DVR impact on Advertising Exposure: 2009 Situation
• DVR impact on Advertising Exposure: 2013 Extrapolation
• DVR Penetration And Usage And Impact On Ad Exposure
• Average Number of Ad Spots Viewed per Day
• DVR Usage Compared US and UK

Pages: 17

Tables & charts: 8

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