Time shifting is the real threat of PVRs

Doomsday scenario for broadcasters
A new Bernstein Research report says that time shifting, not commerical skipping, is the real threat PVRs bring to broadcasters and cable operators. In another chilling article by Television Week’s Diane Mermigas, Bernstein analyst Craig Moffett is quoted as saying, “In a time-shifted world, networks rapidly lose their ability to add value through scheduling—there is no longer advantage to lead-ins and lead-outs. That way of doing business cannot survive.” Moffett goes on to say that PVR and other on-demand services may, in fact, set a new record not only for consumer adoption but also business transformation—especially for the broadcast and cable networks, which may find themselves out of a job, since interactive technology allows viewers to become consummate programmers. It may take 5 years for the whole thing to play out, according to the report.

I’ve been screaming at the top of my lungs for broadcasters to move immediately into a revised business model that positions them as multi-media creators and purveyors. The Internet is the best hope for the industry, and broadcasters can’t wait EVEN ONE DAY to move forward therein.

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