DVRs Not Killing Commercials, According To Networks
By Shane C. Buettner November 26, 2005 — Earlier this month executives from CBS, NBC, ABC, Fox, UPN and WB announced jointly that their research efforts have indicated that people who use TiVos and other DVRs not only watch more television, but that some even watch the commercials rather than blasting right past them with the fast-forward button.

Their data reveals that people with DVRs spend 12% more time watching TV than people who don't own the hard-disc recorders. According to the networks, more than 50% of DVR users not only paid attention to commercials, but also recalled the ads they saw. On top of that, 53% of DVR users have hit the rewind button and gone back to ads they initially skipped through.

While it's not surprising that research sponsored by the networks would show that the commercials that pay their bills are still being watched, there may be something to it. Prime-time programs not only saw a 4% boost in viewers among DVR owners, separate research by Nielsen showed that 90% of DVR owners still watched shows at their designated broadcast time, commercials and all. And let me add that I've owned a DVR for years now, and it's not unusual for me to watch shows "live" or even rewind to a commercial I'd passed for a new movie or TV show that looks interesting.

The concern on the part of the networks is obvious: 8% of America's 110 million TV-owning homes now have DVRs, and that number is expected to more than triple to approximately 40 millions homes within five years. That means more than a third of the nation's TV households will have access to a fast forward button when watching recorded shows.

Early market research predicted that DVRs would be the death of commercials, and thus the current model of "free" TV. But it's now believed that the early data was skewed because it reflected the habits of techies and other early adopters, rather than more typical TV watchers.