Strange Bedfellow: Networks & DVRs

For years the conventional wisdom has been that DVRs would kill - or at least severely cripple - the TV ad-selling model. The thinking was that time shifting of TV shows meant commercial skipping, as well as the convenience of what is in effect an on-demand service. However, as DVR penetration has soared to 33% of all households, networks are pleasantly surprised with what they're seeing. Those who own DVRs watch more television than those without - and they're not all skipping the commercials. Consequently, networks are finding that the inclusion of DVR viewing is creating larger audiences and, consequently, more ad revenue.

The most interesting finding this year is that 46% of adults 18-49 who view programming on DVRs do not skip the commercials. Why would viewers sit through commercials when it's so easy to skip past them? Many experts think it's because TV viewing is still a primarily passive exercise. Others posit that advertisers are working harder to make more interesting, creative and entertaining commercials.