Unit II Case Study Instructions 1. Discuss how PVRs will affect the demand from advertisers.
In order to examine the effect that PVR has on advertising companies, we need to consider the needs of society and how will it benefit from this video recorder.
Comfort is an important issue in today’s society. The easy programming and the large video recording space, which reaches up to 60 hours, makes this devise very desirable. Moreover, the flexibility to play the recorded program repeatedly at the viewers’ most convenient time removes the need to schedule your day based on the programs.
Advertising Companies depend on programs to promote products or services based on the client. However, because of PVR the viewer is capable of…show more content… However, this will without doubts affect the advertising companies as well as the viewers may miss information that could have been somewhat important. Moreover, lets consider the possibility that this device is being purchased by a large number of people, which continues to increase due to its popularity. The advertised companies as well as the advertising companies will eventually have huge losses in their revenue. Television will be never be experienced the same. The commodity of having a video recorder will convert the act of watching television into yet another purchasable video in the market.
Article Personal Video Recorder
5. What advice would you give the major commercial networks and producers of programming for these networks as more consumers adopt PVRs?
The extensive usage of PVR has caused many commercial companies to lose revenue. The list of concerns is reaching frightening levels due to the spreads of this device between Cable TVs. Dish Network and the EchoStar Corporation have agreed to pay TiVo $500 million to settle an agreement, where they would be able to implement PVR in their system. Moreover, it is possible that future contracts will be developing between TiVo and other companies.
In order to find a solution that will somehow please both parties TiVo is trying to sell ad spaces on its screens. While the viewer is watching the recorded program and
