Tuesday, July 24, 2007
TiVo Shakes Up Ratings, DVR Markets
"I'm not dead yet... I'm feeling better." It's a great line from "Monty's Python and the Holy Grail", but it could have been spoken by digital video recorder maker TiVo after the recent announcements of a new ad rating service and low-cost high definition (HD) recorder.TiVo is upsetting the folks at Nielsen's who have long had a stranglehold on TV ratings and advertisers' ears. TiVo is now compiling data about which shows are watched most after being "TiVoed," and which ads were the least skipped by viewers. It's the first time that ad-watching within a program has been quantified.
The data is powerful for advertisers because they get a better idea of the value of their commercials and how relevant they are for a program's audience. The ad rating service details the shows that are best fit for an ad, as well as the overall effectiveness of a campaign.
Advertisers are willing to pay for this information, so TiVo could finally have obtained it's holy grail -- a revenue stream that brings consistent profitability.
TiVo today announced a new $299 HD DVR, less than half the price of the previous model. If you are willing to pay for an HD TV and receiver, than buying a TiVo is a no-brainer. Watching your favorite shows on your schedule in high def is worth the price, which is less than the cost of going to one movie each month when you spread it out over two years.
So long live TiVo. While consumers have always loved the device (you can download an article by me that says why TiVo is still tops), now advertisers have a reason to love TiVo too.
Posted By John Gartner at 09:43 AM
Permanent Link: TiVo Shakes Up Ratings, DVR Markets
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