Study uncovers key DVR trends impacting the television and advertising industries.
Consumers who own digital video recorders (DVRs) like TiVo skip 92 percent of ads, according to "Inside The Mind Off The DVR User," a new report conducted by Forrester Research Inc. The study also found that TiVo users spent 60 percent of their viewing time watching delayed or recorded programs.
The study found that DVR owners rated their TV watching experience as a significant improvement and gave it an average of 4.4 on a five-point scale.
Viewers report watching 8 percent of commercials in recorded programming. However, 30 percent of viewers report that they do not watch commercials at all.
"The ability to record programs easily, pause live TV, and skip ads creates a powerful change in the way they (consumers) view television. As these devices shift the way that mainstream consumers experience programming and advertising, they create both opportunities and challenges for the TV industry," says Josh Bernoff, vice president of Forrester Research.
The found report found that DVR users make only 5 percent of households in the U.S. However, according the report, ownership is estimated to grow to 41 percent within five years.
However, not all of the report's findings portend a bleak future for advertisers. The study found 75 percent of DVR users watch some ads; movie ads and promos for upcoming programming are popular with these viewers.
Still, the downside for advertisers is that DVR consumers watch less than 10 percent of non-entertainment industry ads; examples of such ads include commercials about long distance carriers, credit cards and banks.
"TiVo totally changes the television viewing experience. It takes the concept of a schedule and obliterates it. It's TV on your time. I feel that TiVo is the first step towards the personalized TV experience they've been talking about for years," says TiVo user John Goodner.
TV advertisers must learn to adapt to these media changes to ensure a profitable coexistence with TiVo. And whether advertisers find TiVo a blessing or a nightmare, one thing is certain: the age of personalized TV is coming.