In what may seem a media business version of the Stockholm syndrome, television network executives have fallen in love with a former tormentor: the digital video recorder.
The reason is not simply that more households own DVRs — 33 per cent compared with 28 per cent at this point in 2008 — helping some marginal shows become hits. It is also that more people seem content to sit through the commercials than networks once thought. These factors combined mean DVR ratings now add significantly to live ratings and thus to ad revenue.
“The DVR was going to kill television,” said Andy Donchin, director of media investment for the ad agency Carat. “It hasn’t.”
Against almost every expectation, nearly half of all people watching delayed shows are still slouching on their couches watching messages about movies, cars and beer. According to Nielsen, 46 per cent of viewers 18 to 49 years old for all four networks taken together are watching the commercials during playback, up slightly from last year. Why would people pass on the opportunity to skip through to the next chunk of programme content?
The most basic reason, according to Brad Adgate, the senior vice president for research at Horizon Media, a media buying firm, is that the behavior that has underpinned television since its invention still persists to a larger degree than expected. “It’s still a passive activity,” he said.
Two years ago, in a seismic change from past practice, Nielsen started measuring television consumption by the so-called commercial-plus-three ratings, which measure viewing for the commercials in shows that are watched either live or played back on digital video recorders within three days. This replaced the use of programme ratings. At the time, network executives fiercely resisted the change, fearing that they would never get credit for recorded shows because viewers would skip through all the commercials. But the figures show otherwise.
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