Digital Video Recorder - The Future of TV Advertisements

The Future of TV Advertisements

Digital video recorders are also changing the way television programs advertise products. Watching pre-recorded programs allows users to fast-forward through commercials, and some technology allows users to remove commercials entirely. Half of viewers in the United States, for example, use DVRs to skip commercials entirely. This feature has been controversial for the last decade, with major television networks and movie studios claiming it violates copyright and should be banned.

In 1985, an employee of Honeywell’s Physical Sciences Center, David Rafner, first described a drive-based DVR designed for home TV recording, time-slipping, and commercial skipping. U.S. Patent 4,972,396 focused on a multi-channel design to allow simultaneous independent recording and playback. Broadly anticipating future DVR developments, it describes possible applications such as streaming compression, editing, captioning, multi-channel security monitoring, military sensor platforms, and remotely piloted vehicles.

The first DVR which had a built-in commercial skipping feature introduced in 1999 by ReplayTV at the Consumer Electronics Show in Las Vegas. In 2002 five owners of the ReplayTV DVR sued the main television networks and movie studios, asking the federal judge to uphold consumers' rights to record TV shows and skip commercials claiming that features such as commercial skipping help parents protect their kids from excessive consumerism. ReplayTV was purchased by SONICblue in 2001 and on March 2003 SONICblue filed for Chapter 11 bankruptcy after fighting a copyright infringement suit over the ReplayTV's ability to skip commercials. In 2007 DirecTV purchased the remaining assets of ReplayTV. A third-party add-on for Windows Media Center called "DVRMSToolbox" has the ability to skip commercials. There is a command-line program called Comskip that detects commercials in an MPEG-2 file and saves their positions to a text file. This file can then be fed to a program like MEncoder to actually remove the commercials.

Many speculate that television advertisements will be eliminated altogether, replaced by advertising in the TV shows themselves. For example, Extreme Makeover: Home Edition advertises Sears, Kenmore, Kohler, and Home Depot by specifically using products from these companies, and some sports events like the Sprint Cup of NASCAR are named after sponsors.

Another type of advertisement shown more and more, mostly for advertising TV shows on the same channel, is where the ad overlays the bottom of the TV screen, blocking out some of the picture. "Banners", or "Logo Bugs", as they are called, are referred to by media companies as Secondary Events (2E). This is done in much the same way as severe weather warnings are done. Sometimes these take up only 5–10% of the screen, but in the extreme, can take up as much as 25% of the viewing area. Some even make noise or move across the screen. One example of this is the 2E ads for Three Moons Over Milford in the months before its premiere. A video taking up approximately 25% of the bottom-left portion of the screen would show a comet impacting into the moon with an accompanying explosion, during another television program.

Because of this widely used new technology, advertisers are now looking at a new way to market their products on television. An excerpt from the magazine Advertising Age reads: "As advertisers lose the ability to invade the home, and consumer's minds, they will be forced to wait for an invitation. This means that they have to learn what kinds of advertising content customers will actually be willing to seek out and receive."

With ad skipping and the time-sensitive nature of certain ads, advertisers are wary of buying commercial time on shows that are heavily digitally video-recorded. However, technology today makes it possible for networks to insert ads dynamically on videos being played in DVRs. Advertisers could inject time-relevant ads to recorded programs when the program is viewed. This way the ads could be not just topical but also personalized to viewers interests. DirectTV in March 2011 signed an arrangement with NDS Group to enable the delivery of such addressable advertisement. It is believed that viewers prefer to forward ads, than to switch the channel. By switching channels viewers will have the probability of skipping the beginning of their program. Users might switch to a channel that is also showing ads. Having the ability to pause, rewind, and forward live TV gives users a chance to change the channel less times. Forwarding ads can have a later affect on the viewer. Ads that get the viewers attention will influence the viewers to rewind and watch what was missed.

In January 2012, Dish Network announced Hopper service, costing $10 extra per month, which recorded prime-time programming from the four major broadcast networks. With the Auto Hop feature, viewers can watch the programs they choose without commercials, without making the effort to fast-forward. On May 24, 2012, Dish and the networks filed suit in federal court.