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Steve Outing
A group weblog about the intersection of news & technology


No Ads for the Well-Heeled
Posted by Steve Outing at 1:36 PM on Jan. 24, 2005
No one in my family watches TV commercials because there's been a TiVo in our house for several years. (The fast-forward button is worn way down.) Now, we're adding Sirius satellite radio service, so we'll be rid of radio commercials; Sirius offers 65 channels of commercial-free music.

As digital video recorders and subscription satellite radio spread to more and more households in the years ahead, this is going to have a profound effect on broadcast advertising, of course. We often talk here about product placement as one alternative as people watch fewer TV commercials.

But I wonder if there will be another near- to medium-term effect, because DVRs and satellite-radio subscriptions are still luxury items not as likely to be purchased by lower-income families (because of the additional monthly subscription fees). Will conventional broadcast advertising shift -- to more commercials for Wal-Mart and fewer for tony stores, more for inexpensive cars and fewer for Mercedes -- because fewer middle- and upper-income consumers are being reached?
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