TiVo, and The End Of The Commercial?

TiVO allows users to record programs for watching them later. When users watch their programs later, they generally skip the commercials. This is the trend across all sections of users. Is this the end of the commercial?

20 percent of houses in the US owned DVR’s in Q2 2007. By the end of 2011 this number is likely to be 35% according to research. 60% of DVR owners skip ads. Media professionals and Ad Gurus are trying to combat this trend that is creating non viewership of ads and jeopardizing $65.4 billion in television advertising.

TiVo inc has made an effort in this direction. When a TiVo subscriber fast forwards a commercial, he will see a graphic overlay with the advertisers logo. If they want, sometimes, TiVo users can click the logo for further information.

Cox Communications is making an effort in this direction as well. Some programs will be offered free through video-on-demand. These viewers will be told in a five second message that fast forwarding past ads is not available.

Time Warner is innovating as well. New options called “Start Over” and “Look Back” allow viewers to watch certain programs on the precondition that they have to view commercials.

So is TiVo the end of the commercial? Not quite, methinks.