Friday, March 7, 2008

Tipping Points for SKY Plus

This is US news but very relevant to Sky Plus viewers. Note - DVR = Digital Video recorder, just like the Sky Plus box.

"For the TV networks — who sell more than $9 billion in prime-time commercial spots each year — the really bad news is that when DVR penetration reaches 50 percent marketers are going to start cutting their spending."

The expectation in the USA is that when DVR penetration reaches 50% ad spending will be cut by 12%.

What that really means of course is that the growing popularity of digital video recorders will have the effect of reducing ad supported television programmes. Any SKY Plus viewer is used to going with the flow but does this mean tougher programme budgets ahead or more event-type subscriptions (Sky Sports and Sky Box office) for us?

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