Despite the level of buzz around ad skipping, not everyone owns a DVR. Our research shows about one-third of online households have a DVR (or think they do). But almost everyone owns a PC, and most of those folks are online. So, actually, they do own a DVR, as a PC with online video serves that purpose for many people.
|Photo: Stephanie Diani|
|Mike Vorhaus is president of Magid Advisors for Frank N. Magid Associates.|
The No. 1 reason these people watched TV shows online was to catch up on shows and shift viewing to a more convenient time. The only demographic groups that didn't care that much about catching missed shows were the younger males -- all the other demographic groups are mostly using online video to catch up or time shift.
Interestingly, another major reason consumers like watching shows online is that there are fewer and shorter ads. We have confirmed this in focus groups: Consumers think watching shows online is a "good deal" in terms of fewer ads.
Of course, from the point of view of advertisers, online video advertising on TV shows is a wonderful product; unlike the DVR, there is no ad skipping on video players controlled by the content provider.