Brand / Marketing Communication Strategies and Advertising and Promotional Strategies Case Study

DVRs and Advertising Industry: Opportunity and a Threat?

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Abstract:
DVR (digital video recorders) emerged as a threat to the global advertising industry as well as the traditional revenue model of free television in the US. These devices which allowed advertisement skipping became popular among the television viewers in the US. As a result, advertisement viewership dropped for major television channels and advertisers were shifting to other forms of product promotion. At the same time, TiVo and ReplayTV, which pioneered the DVR industry in the country, were reinforcing their image as 'industry friendly' with advertising alliances with marketers. Advertisement agencies were also collaborating with TiVo and were discovering the new media as an opportunity. 'Recency', a model that gives prominence to reach over frequency and 'advertainment', advertisements that entertain, were the evolving concepts that gained relevance in the industry.

Pedagogical Objectives:

To discuss the opportunities and threats the DVRs are posing to the advertising and the television media industry.

Keywords : TiVo as a threat to advertising, DVR (digital video recorders), Advertisement skipping, Marketing Strategies Case Study, Traditional free television model, Advertising industry, DVR penetration, 30-second commercials, 'Advertiser friendly' TiVo, TiVo as an opportunity, Television viewing habits, Video on demand, TiVo users in US, Time shifting, Advertainment, Recency

Contents:

• TiVo & ReplayTV – Advertisers' Enemies?
• The Threat From DVRs
• DVR Owners Watch More Television
• Advertisers' Dilemma
• An opportunity as well!