Friday, May 24, 2013

DVR Use and TV Revenue

Written by Rebecca L.

Will increased DVR use cut into TV advertising revenue?

The more people use their DVR the greater the negative affect is on the TV advertising revenue. With each new generation comes a lack of patience, especially when it comes to their entertainment. People used to enjoy watching commercials as well as shows because it opened their eyes to the many new products that had just entered the market. Now that we have the internet with search engines and store fliers with lists of products people feel that commercials are unnecessary and only cut into their entertainment time. This impatience with TV advertisements causes people to DVR their shows so that they can watch them unhindered by constant 15 min. breaks. Even if this seems like a plus to most of us we rarely realize just how big of an affect we have on the businesses who advertise and on the TV channels that broadcast the commercials.

Businesses pay a lot of money in order to advertise their products in hopes that people will see these commercials and decide to buy the advertised product. The TV channels receive a large amount of their income from businesses that pay them to play their commercials, allowing them to continue playing all of our favorite shows. If we continue to increase the amount that we DVR then fewer and fewer people will watch commercials and will be less inclined to buy the advertised product cutting in to the producers income. This decrease in income will cause businesses to advertise less or may even cause them to stop advertising all together. Not long after businesses stop making commercials we will notice that the TV channels that used to play our favorite shows have lost so much of their income that they have had to shut down or at very least have had to cancel certain shows. This is the great negative affect that many people are having on the TV business through the constant use of their DVR. You can help prevent the large cuts into the TV advertising revenue and keep many TV channels in business for years to come, by choosing to watch commercials.

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