JupiterResearch Estimates DVR Commercial Skipping Could Threaten $8 Billion in TV Advertising

Business Wire, May 4, 2006

NEW YORK -- JupiterResearch, a leading authority on the impact of the Internet and emerging consumer technologies on business, has found that 53 percent of online Digital Video Recorder (DVR) subscribers used their DVRs to skip commercials. If these DVR households skip commercials 100 percent of the time, the cable and broadcast TV advertising revenue potentially at risk in 2006 would be $8 billion of the $74 billion TV advertising market.

According to a new report: "The DVR Dilemma: Managing Consumer Behavior," DVR users who skipped commercials report watching an average of 18 hours of television per week - not significantly more than viewed in non-DVR homes.

"Claims that DVRs tend to increase television viewing are not true across the board," said Todd Chanko, Analyst at JupiterResearch and author of the report. "Only for those homes that record and watch a show the same day or week does DVR use boost overall TV watching, from 17 hours a week for non-DVR homes to 20 hours a week."

JupiterResearch recommends that television networks and advertisers rethink programming and advertising strategies to cope with how DVRs are being used.

"Current efforts by certain networks to charge for prime-time reruns via DVR technology do little to boost revenue and almost serve to penalize DVR users who forgot to properly program their unit," said David Schatsky, President of JupiterKagan Research. "The $8 billion segment of cable and broadband TV advertising revenues potentially at risk due to DVR commercial skipping is not a foregone conclusion, but reworking ads to leverage the unique DVR experience could open new avenues of creativity and relationships with viewers."

The complete findings of this report are immediately available to JupiterResearch clients online at www.jupiterresearch.com. For additional information on JupiterResearch's Television & Filmed Entertainment research offerings visit www.jupiterresearch.com or contact Kieran Kelly, Senior Vice President of Global Sales and Client Service, at 1-800-481-1212 or researchsales@jupitermedia.com.

About JupiterResearch

JupiterResearch provides unbiased research, analysis and advice, backed by proprietary data, to help companies profit from the impact of the Internet and emerging consumer technologies on their business. The company helps online businesses make critical decisions about technology selection, spending, staffing, and Web site effectiveness; advises consumer-facing companies with online advertising, marketing, and customer service strategies to understand, attract, convert and retain customers; and guides technology vendors and service providers on market opportunity, positioning, product definition, and pricing. JupiterResearch is headquartered in New York City and has offices throughout the US and Europe. For more information, visit www.jupiterresearch.com. JupiterResearch is a division of JupiterKagan, Inc.

About JupiterKagan, Inc.

JupiterKagan, Inc. was formed in 2006 from the merger of JupiterResearch and Kagan Research, two companies providing thought leadership, research and advice in the domain of the media and telecommunications, Internet, and emerging consumer technologies. The company's deliverables include continuous information services (available by subscription), research reports, data, inquiries with research analysts, appraisals, litigation support and consulting. JupiterKagan operates from six offices in the United States, United Kingdom, France and Germany. For more information, visit www.jupiterkagan.com.