Posted on 07/06/2006 6:08:14 AM PDT by abb
ABC HAS HELD DISCUSSIONS ON the use of technology that would disable the fast-forward button on DVRs, according to ABC President of Advertising Sales Mike Shaw, with the primary goal to allow TV commercials to run as intended.
"I would love it if the MSOs, during the deployment of the new DVRs they're putting out there, would disable the fast-forward [button]," Shaw said.
While MSOs risk losing some of their DVR customers if fast-forwarding were blocked, Shaw said the cable operators--who are beefing up their own local ad sales operations--"are in the same business we're in." "They've got to sell ads too," he said. "So if everybody's skipping everybody's ads, that's not a long-term business model for them either."
Shaw also threw cold water on the idea that neutering the fast-forward option would result in a consumer backlash. He suggested that consumers prefer DVRs for their ability to facilitate on-demand viewing and not ad-zapping--and consumers might warm to the idea that anytime viewing brings with it a tradeoff in the form of unavoidable commercial viewing.
"I'm not so sure that the whole issue really is one of commercial avoidance," Shaw said. "It really is a matter of convenience--so you don't miss your favorite show. And quite frankly, we're just training a new generation of viewers to skip commercials because they can. I'm not sure that the driving reason to get a DVR in the first place is just to skip commercials. I don't fundamentally believe that. People can understand in order to have convenience and on-demand (options), that you can't skip commercials."
Shaw said it's crucial for ABC and networks to hold these discussions with MSOs while DVR penetration is still in its early stages. DVRs are at around 10 percent of U.S. TV households. "It's in our interest and the MSOs' interest to figure out something that works for the two of us," he said.
The frequently outspoken Shaw made his comments Wednesday in a post-upfront interview where he offered up another round of no-nonsense commentary.
Looking back on the protracted upfront, Shaw said he was surprised that competitors at CBS and Fox were so quick to fold the tent and accept buyers' refusals to pay for increased ratings generated from DVR viewing. Shaw had argued earlier in the spring that the ratings jumps--which have reached double-digit percentages for top shows--had value, and he intended to charge for them. He continued that position early in the upfront until it became clear the two other networks weren't willing to hold the line, and had agreed to negotiate on "live" ratings only.
"I'm sure they told their upper management in their two companies why it wasn't a good idea for them to do so," Shaw said. "They and their management must have decided that the same thing we thought was important wasn't important."
Shaw said if he knew he'd be the lone proponent for negotiating on time-shifted ratings, he might have changed course. "Obviously, going back to last February, if I knew nobody else on the entire sell-side of the equation was going to open their mouths besides us, I don't know if we would have gone down the same track," he said.
Some research executives--even at networks with sales departments that acted differently--had argued before the upfront that ads viewed in fast-forward mode generated value for advertisers, since consumers were at least partly exposed to their messages. But Shaw said ABC was only interested in finding a way to receive compensation for un-skipped ads.
ABC's upscale audience, coupled with a strong performance in "A" counties and in leading markets, made his network a must-buy. "If you were looking for those attributes, with the programming on ABC that we deliver, are you going to move those dollars to CBS?" he said. "It doesn't make sense."
No shrinking violet, Shaw is the only sales chief at a major network to speak to the media as part of an upfront postmortem.
As questions fade about whether to negotiate solely on DVR ratings, Shaw said ABC will move aggressively to make deals based on Nielsen's new "commercial ratings," set to be unveiled at the start of the new season. He said ABC was interested in possibly using them as a currency in this upfront, but buyers felt implementing the logistics in such an abbreviated time period wasn't feasible. "We were too late in bringing that to the market for practical reasons," Shaw said. But, he added, "it's going to transform how people buy and plan television."
But Shaw said ABC executives will be fanning out to agencies and advertisers over the next two weeks to present an analysis of commercial ratings data from the last six months, which presents ABC in a favorable light. He added that some scatter business may be written based on the new ratings.
The creepy fact is that the Dinosaur media's worries will go the way of the dinosaur as customized advertising takes hold.
When ads become directed to what a specific consumer wants the odds of FastForward becoming a problem decrease. Creepy in that some suit's computer knows what you like.
IOW you only see ford commercials not chevy (OR vice versa)
IOW you only see politicians commercial number 6, 7, 8, but not commercials 1, 2, and 4
IOW The dinosaur media can't survive using a one way medium in a two way era.
Your last suggestion has some merit. I know that one of the reasons I FF is that 4-7 minutes of commercials bore me to tears. What the networks need to consider is that if they force us to sit through those long blocks of commercials, a lot of us will just turn off the teevee and go do something else. Most teevee shows are just not good enough to endure so many commercials!
That one's a keeper. I may steal it, lol...
LOL--I just knew this was going to happen!
already being done.
remember these executives are still trying to figure out where the 18 to 45 year old males went.
They have no male audience.
Men don't watch commercials.
Screw u, ABC.
I have found a lot of shows I couldn't enjoy on "TV" I can enjoy if I download them and watch them commercial free. Those long commercial breaks just kill a lot of TV shows.
Just about any slightly popular to very popular show can be found easily for download.
It is getting to where I can hardly listen to Limbaugh anymore because of his tons and tons of "profit centers." I may get his premium service just to dump those!
Really? Where?
I'm not sure I have the technology to do that. I can download it, sure, but who wants to watch it on an a computer monitor? Sounds like I'd need to invest thousands, and for what? A book just costs a few bucks. I already pay for my satellite dish and the programming, plus the dvr--nope, this just doesn't sound cost effective.
What is a DVR? This is a legit question. I have no idea what this contraption is.
It's a catch-all acronym for a class of devices used to record video.
Digital Video Recorder.
I wonder how much the brand name octane booster company paid the net for this "feature"?
I'm just glad those 5 min long phone commercials from a few years ago are gone.
I find it interesting that Limbaughs commercials run 3 1/2 minutes. Hannity's bottom of the hour break runs 7 minutes. I change the channel and come back when I know he's back on. I wonder why one is so much longer than the other.
I expect a new "feature" in DVR's that will place banner ads as you fast forward.
Nothing I would complain about but its definately a boon for the cable outlets to make money since EVERYONE fast forwards regardless what this ABC empty suit thinks.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.