Fears that PVRs will transform the planning process have been confirmed by BSkyB’s admission that more than three-quarters of Sky Plus viewers skip through the adverts when watching recorded programmes.
BSkyB chief executive, James Murdoch, yesterday reaffirmed his commitment to the Sky Plus personal video recorder, claiming that it supplements core viewing and provides a platform for further developments.
He revealed to city analysts that a staggering 76% of viewers do not watch the commercial breaks when playing back recorded content, this compares to just 22% ad-avoidance for Sky’s basic satellite offering.
However, more than 60% of television watched by Sky Plus viewers is still live, with news, sport and documentaries the most likely to be viewed in real time. Recorded content accounts for around 38% of total viewing with dramas and movies attracting the most playback.
BSkyB claims that 54% of Sky Plus viewers now watch a wider range of channels than before with sports and movies providing particularly popular. Terrestrial viewing has decreased by 21% during the same period.
An ongoing study into the effect of PVRs carried out by PHD suggests that the ability to skip through commercial breaks could challenge the currency of television trading and could also threaten the income of television channels dependent on advertising revenue.
The research claims that increasing uptake will lead to a shift away from conventional airtime spots and suggests that the new commercial opportunities are going to be in sponsorship and in advertiser enhanced programming (see PVRs Could Transform Media Planning Process).
The effect of PVRs on television advertising is dependent on the rate of uptake over the next few years. In October 2003 Sky had approximately 150,000 subscribers to its Sky Plus service. However, it recently launched a £20 million advertising drive to increase penetrations and PHD predicts it will achieve 1 million subscribers by 2005 (see BSkyB Launches £20 Million Campaign To Promote Sky Plus).
BSkyB: 0207 705 3000 www.sky.com
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