Yankee Group: PVRs to impact ad industry by 2005

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Boston--The penetration of the personal video recorder currently remains low, with less than 2% of U.S. homes owning such a machine, but PVR technology may “disrupt the entire value chain for television,” according to a report issued Monday by the Yankee Group.

The report, called “The Death of the 30-Second Commercial,” estimates that by 2007, nearly 20% of all U.S. homes will be able to fast-forward TV commercials.

The report speculated that the advertising industry will feel the impact in mid- to late 2005 when PVR penetration grows to 10 million subscribers.

Nonetheless, the Yankee Group said it expects that the 30-second spot will remain the most widely used TV ad format for the next five years.

--Sean Callahan

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