E-Media Tidbits

What's the TV industry to do about all those naughty, TiVo/DVR-owning commercial skippers? (Yeah, I'm one.) The Los Angeles Times tackles that perennial question in Meg James' article, "Looking for New Ways to Make Viewers Pay."

It seems that the industry is thinking not only of the oft-spoken product placement within shows (like this), but also of developing a scheme where viewers pay for commercial-free view-on-demand of shows. This would apply to the commercial networks, so think $1 to view Desperate Housewives. (This assumes, of course, that the TV industry has forced DVR manufacturers to restrict commercial skipping on some shows by technical means.)

James notes a Smith Barney report indicating that the tipping point for the television industry could come as early as 2007, when losses could be as much as $7.6 billion (about 10 percent of annual TV ad revenue) because by then advertisers will be seeking other ways of reaching consumers.

CBS research released this week found consumers receptive to such an economic model. I'm not smart enough to know how this is going to turn out, but I won't be surprised in a few years to be paying for more programming, just as I'm now willing to pay for HBO. And yes, I'd be willing to pay for some shows.

I suspect that under such a model, however, viewership of all shows would drop significantly. DVR owners accustomed to commercial-free TV might have difficulty viewing regular broadcasts with (forced) ads for shows that they're not willing to pay a dollar for. Watching a show with lots of commercials is torture for me, so I prefer to do something else (read, go online). I can predict my own behavior under such a model: less TV watching. That's good for me, bad for the TV industry.