Nick
07-19-05, 06:06 AM
Analyst: Stop Worrying and Love the DVR
Will rising DVR penetration have a massive impact on TV
advertising?
In a note titled "How I Stopped Worrying and Love the DVR,"
Banc of America Securities analyst Doug Shapiro said while
digital recorders may have an impact on advertising, the death
of network TV has been somewhat exaggerated.
His points: Another upfront just passed and advertisers hardly
abandoned broadcasting in droves, and the aggregate amount of
money allocated to the upfront was $9.3-9.4 billion, down only
slightly from last year. "Not overwhelmingly robust, sure, but
hardly a death knell," Shapiro said.
The Banc of America analyst also pointed out that DVR usage
apparently boosts viewing, and networks are slowly adapting
with alternative ad formats, programming and technologies that
are geared to minimize ad skipping or its impact.
"We believe that much of the analysis so far, which asserts
that there is a linear relationship between 'ads skipped' and
ad dollars, is based on a faulty premise," Shapiro said.
Banc of America estimated there are about 9 million DVRs in
U.S. households today, representing an 8 percent penetration.
That penetration number will rise to more than 30 percent by
2009, the firm said.
www.skyreports.com - used with permission
Will rising DVR penetration have a massive impact on TV
advertising?
In a note titled "How I Stopped Worrying and Love the DVR,"
Banc of America Securities analyst Doug Shapiro said while
digital recorders may have an impact on advertising, the death
of network TV has been somewhat exaggerated.
His points: Another upfront just passed and advertisers hardly
abandoned broadcasting in droves, and the aggregate amount of
money allocated to the upfront was $9.3-9.4 billion, down only
slightly from last year. "Not overwhelmingly robust, sure, but
hardly a death knell," Shapiro said.
The Banc of America analyst also pointed out that DVR usage
apparently boosts viewing, and networks are slowly adapting
with alternative ad formats, programming and technologies that
are geared to minimize ad skipping or its impact.
"We believe that much of the analysis so far, which asserts
that there is a linear relationship between 'ads skipped' and
ad dollars, is based on a faulty premise," Shapiro said.
Banc of America estimated there are about 9 million DVRs in
U.S. households today, representing an 8 percent penetration.
That penetration number will rise to more than 30 percent by
2009, the firm said.
www.skyreports.com - used with permission