Forrester Research Conducts In-Depth Survey Of DVR Users To
Uncover Key Trends Impacting The Television And Advertising
Industries
Data Reveals Strong Consumer Affinity For DVRs And A 54 Percent
Reduction In Ad Exposures For DVR Users
Cambridge, Mass., September 8, 2004 . . . According to a new report
series from Forrester Research, Inc. (Nasdaq: FORR), consumers who
own digital video recorders (DVRs) like TiVo spend nearly 60
percent of their time watching recorded or delayed programs, in
which they skip 92 percent of ads. These habits are important
because todays DVR users 5 percent of households will grow to 41
percent within five years, according to Forrester. What changes
will the television and advertising industries have to make to
weather this shift?
To answer this question and to better understand DVR users'
ad-skipping behavior, television viewing tendencies and the impact
this shift will have on the television and advertising industries,
Forrester surveyed 588 DVR users. The survey results have been
published in the two-part report series, "Inside The Mind Of The
DVR User."
Laptop Battery "Consumers told us that they love the control DVRs give them.
The ability to record programs easily, pause live TV, and skip ads
creates a powerful change in the way they view television," says
Forrester Research Vice President Josh Bernoff. "As these devices
shift the way that mainstream consumers experience programming and
advertising, they create both opportunities and challenges for the
TV industry."
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Thinkpad Key Survey Findings:
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Microsoft Consumers love their DVRs.
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Laptop Computers * DVR owners rated their improved enjoyment of TV at an average
4.4 on a five-point scale. Nearly one in five respondents used the
word "love" in response to an open-ended question about how they
feel about their DVRs.
* DVR owners are hooked on the device less than 2 percent of
people who owned DVRs have stopped using them.
* While today's DVR owners are demographically mainstream, they
are off the charts in their adoption of premium TV services and
home electronics. Nearly half of them have a home network, which is
four times the penetration of a typical online household.
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Laptop Computer DVRs have a significant impact on consumers' TV viewing
habits.
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Desktop Computer * While real-time viewing drops by 60 percent for consumers who
use DVRs, programs like the evening news and sporting events are
among the programs that retain significant real-time viewing.
* Forrester's survey respondents report watching only 8 percent of
commercials in recorded programming. Three out of 10 viewers say
they watch no commercials at all.
* Although the numbers paint a gloomy picture for advertisers,
viewers do not treat all ads equally. Three out of four DVR users
watch some ads at least occasionally. Movie ads and promos for
upcoming programming fare best. Conversely, consumers watch less
than one in 10 ads about credit cards, long-distance carriers, car
dealers, and banks.
Notebooks The "Inside The Mind Of The DVR User" research series includes
recommendations to TV networks, advertisers, cable and satellite
providers, and consumer electronics makers and retailers on how to
best position themselves as DVR adoption and ad skipping rapidly
increase.
Lenovo The series is available to WholeView 2 clients and can be found
at www.forrester.com.
Hard Drive Forrester is an independent technology research company that
provides pragmatic and forward-thinking advice about technology's
impact on business. Business, marketing, and IT professionals
worldwide collaborate with Forrester to align their technology
investments with their business goals. Forrester offers products
and services in four major areas: Research, Data, Consulting, and
Community. In February 2003, Forrester acquired Giga Information
Group. Established in 1983, Forrester is headquartered in
Cambridge, Mass. For additional information, visit
www.forrester.com.
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