VOD and DVR Stats

A quarter of all TV households were able to access Video on Demand (VOD), and nearly 16% had a DVR in 2006, according to research firm eMarketer. The firm also says that DVR and VOD penetration will rise through 2010. The established wisdom within the TV and advertising sectors is that increasing usage of digital video recorders (DVRs) and video-on-demand (VOD) will reduce the effectiveness of the traditional TV advertising model, with a commensurate drop in ad spending. So far, this has not been the case. Any potential TV advertising spending foregone as a result of DVR usage will be more than offset by spending in other areas. Online advertising spending is certainly one area that has benefited from changing TV dynamics.

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