Wednesday, April 06, 2005

Chernin: Live events key in DVR world - Advertising - Entertainment and Leisure - Media - Telecommunications - Fiber Optics - General - Newsmakers

Chernin: Live events key in DVR world - Advertising - Entertainment and Leisure - Media - Telecommunications - Fiber Optics - General - Newsmakers

News Corp(NWS) has a good handle on the change coming to TV viewing. Yesterday, readers were appalled that CMCSA is developing technology to add new commercials to old shows. The model that has been good for cable providers is one of charging for a package of channels that include premium channels but then filling all but a few channels with commercials.

In the new model of video on demand, viewers will pay to view shows that have been "time shifted" or they will see new commercials that are context sensitive. In fact the commercials will likely be relative to the buying habits of the particular viewers. This is a good thing. Advertisers will be able to get more bang for their bucks which will allow for a smaller total commercial time to pay for shows.

The new TIVO technology is extremely important. It will eventually allow for advertising similar to Google's advertising program. Present but not in the way!

Do the TIVO Gulp and the Google Gulp!

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