Skip to main content

How Big Media Miscalculated DVRs Impact

According to Kagan Research, the digital video recorder is now something of a runaway train, after big media fumbled opportunities to curb the more corrosive aspects of the popular hard-disc video storage device.

Big media's worries: the commercial skipping capability of DVRs threatens to drain ad revenue and unauthorized peer-to-peer sharing of recorded video threatens video-on-demand. Already in the upfront ad selling market now under way, the broadcast TV networks were unable negotiate inclusion of delayed DVR viewing as part of their audience delivery.

A few years ago, cable operators and the networks could have collaborated to create networked DVRs that curb or eliminate ad skipping and unauthorized duplication of recorded programs. But they didn't move quickly enough. At end-2005, Kagan Research counted 1.9 million standalone DVRs in use � with TiVo the dominant brand � that are beyond the direct reach of platform operators. Cable and satellite platforms equipped another 9.4 million of their subscribers with their private label set-top DVRs.

Thus, there were 11.3 million DVRs in U.S. households, "It's the genie that can't be put back in the bottle," says Kagan senior analyst Ian Olgeirson. "The equipment in use today puts a lot of control in consumers' hands." Only recently have big TV channel platforms begun serious efforts to offer alternative approaches that eliminate worrisome features. Clearly, it's a 'lesson learned' in the perils of operating a business within a state of total denial about otherwise apparent changes.

Popular posts from this blog

Banking as a Service Gains New Momentum

The BaaS model has been adopted across a wide range of industries due to its ability to streamline financial processes for non-banks and foster innovation. BaaS has several industry-specific use cases, where it creates new revenue streams. Banking as a Service (BaaS) is rapidly emerging as a growth market, allowing non-bank businesses to integrate banking services into their core products and online platforms. As defined by Juniper Research, BaaS is "the delivery and integration of digital banking services by licensed banks, directly into the products of non-banking businesses, commonly through the use of APIs." BaaS Market Development The core idea is that licensed banks can rent out their regulated financial infrastructure through Application Programming Interfaces (APIs) to third-party Fintechs and other interested companies. This enables those organizations to offer banking capabilities like payment processing, account management, and debit or credit card issuance without