DVR Commercial Skipping Could Cost $8 Billion

Monday, May 08, 2006

A recent press release from market research group Jupiter research showed that $8 billion worth of advertising revenue is at stake due to DVR commercial skipping. Currently they found that approx. half of DVR users skip commercials, if everyone began to skip commercials then the $8 billion dollar TV advertising market for cable and broadcast TV would be at stake.

Jupiter research has recommended that DVR television networks and advertisers rethink their advertising methods as DVR usage increases. Currently no firm solution to the problem has been found with various methods being employed. The most promising method which does not interfere greatly with the consumer is product placement within television shows. This is something that consumers seem to be comfortable with.

This study also found that DVR users watched no more TV than regular DVR users.
This was in contrast to another recent DVR usage study.