PVRs change the future of TV ads
MultiChoice viewing and advertising is set to change with the launch of the personal video recorder (PVR) on 8 November 2005. PVRs combine the immersive "lean back" experience of television entertainment with some of the targeting and interactivity functions more commonly associated with the Internet.
Based on a dual view platform, the PVR offers features such as pause and replay of live events, rewind, fast-forward and a facility to record up to 80 hours of programs. Material and multiple advertising options can be downloaded asynchronously from what is being viewed and stored for on-demand viewing. The technology is unique to South Africa.
GM of MultiChoice Corporate Affairs Fathima Haniff says: "The biggest concern among advertisers and media commentators seems to be that live television advertisements can simply be skipped.
"Far from being a threat to advertisers or content providers, the PVR presents an opportunity. The combination of targeting, providing a response path, measuring viewer response, and the ability to present more than a single ad-spot worth of passive information can all combine to dramatically improve the value and efficiency of television advertising."
Advertising to PVR owners can be made more effective through "click-through" functions presented only to PVR viewers, which pauses the programme (while recording in the background) to present more information, videos, direct response and interactive presentations - all pre-downloaded to the PVR for instant access.
In conjunction with MultiChoice, several advertising agencies have already developed innovative interactive advertising for their clients increasing the performance of advertising many times over.
Statistics from UK and USA markets where PVRs have been available for a number of years show that 60% or more of all content is still consumed live. The implication is that traditional advertising remains unaffected.
According to a survey performed abroad by C Cubed in 2002, PVR owners reported that they watched 20% more hours of television, watched 41% more channels, and 42% more programmes than they did before getting a PVR. Moreover, early distributors of PVRs, such as DirecTV, report that churn even in the highly competitive US market plummeted from 1.5% to 0.5% per month.
In the US, 90% of PVR buyers consider their purchase good or excellent value, and 76% agree that TV is much more fun with a PVR. It is hoped that the PVR will be as successful in SA as the video recorder, CD and DVD players.