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Television networks have relied on a simple business model for the past 50 years: Offer a stable lineup of programming to attract audiences and advertising revenues. Over the next 10 years, a new device -- the personal video recorder (PVR) -- will fracture this model by letting viewers control what they watch and when. As a result, TV ad viewing will be cut nearly in half. According to a new Report from Forrester Research, Inc. (FORR), the embrace of PVRs will usher in an era of ubiquitous pay TV as broadcast, cable, and satellite networks scramble to replace declining advertising revenues.
Personal video recorders are consumer devices that use an intelligent interface and an internal hard drive to digitally record programming in anticipation of viewer demand. With features like instantaneous fast-forward and reverse, the ability to pause live broadcasts, and easy-to-create viewer profiles, PVRs will broaden viewer...