Advertising and television benefit from technological innovation. Both industries have continually embraced change throughout the development and history of content provision. From complete sponsorship of shows to paying millions of dollars for a commercial spot during the Super Bowl, a mutually beneficial relationship has been generated. Technological advances, including Digital Video Recorders, have extended viewership possibilities and have increased television show ratings. The fear and phobia placed on DVR’s cutting into television revenue is unfounded.
According to Nielsen, 85% of television content is viewed live (Nielsenwire, 2012). DVR usage has increased from 1.6% to a modern 8% of television viewing time. In the fall of 2011, broadcast networks experienced a 25% gain in ratings from viewers who recorded and viewed them compared to 2010 (LATimes, 11/2011). According to a 2010 study by the CableTelevision Advertising Bureau, a majority of homes do not own a DVR, of those that do, 78 million households cannot skip commercials, DVR’s do not impact television viewership, and DVR’s are most commonly used to record competing shows during primetime viewership (Cabtv, 2011).
Great advertisers have nothing to fear and television revenue hit a record $68 billion in 2011 (LATimes, 10/2011). A complete industry exists dedicated to the best commercials. Viewers enjoy them, share, tweet, and like them. The social aspect generates viral buzz, and viewers continually watch them online. The technological landscape has changed from being exposed to the advertising mediums on television statically, and instead content providers are now finding other dynamic opportunities to engage. The industry should accommodate the preferences of the consumer, instead of relying on previously traditional methods that a faction of viewers does not wish to view. The focus should instead be on a meaningful connection can be created through interactive and creative advertising that creates a connection with the viewer.
The digital video recorder is another innovation created and developed by the demand of consumers. DVR’s provide viewers with fantastic viewing options instead of limitations. After all, with today’s lifestyle, not everyone can watch their favorite shows during their live timeslots.
The reluctance to embrace technology is hurting the industry. The viewpoint expressed by Mr. Harbert, respectfully, is incorrect. The joint venture between advertisers and content providers must evolve to stimulate and capture audience participation. The standard method for viewing and consuming advertising has changed. Efforts should be focused on promoting new, innovative products and interactions. The digital video recorder and viewing habits of consumers is an opportunity for extending the viewership audience.
Throughout television history there has been technological hesitance over color television, the Video Cassette Recorder, online and streaming content providers such as Youtube, Amazon, iTunes, and the overall digitization of content. Technology has expanded viewership to multiple devices that can be viewed and experienced anywhere. The digital video recorder facilitates viewers’ schedules and provides for an alternative method for programming viewership. The industry can increase their revenue by challenging and creating new ways for advertisers to interact with consumers instead of being fearful of technological advances.