New DVRs on the market allow consumers to watch almost every new show they want to check out—although probably not in pattern—which means those same consumers have a lot more shows on their list than, say, TV fans from five years ago. This is great for TV fanatics, but perhaps not as great for network executives.
Today, The New York Times argues that with more options and a longer DVR playlist, consumers’ delayed viewing behavior is becoming even more delayed, sometimes watching shows weeks after they premiere, causing networks to worry about how ratings will affect advertising revenue.
In the article, called “As DVRs Shift TV Habits, Ratings Calculations Follow,” Brian Stelter writes that though live viewing is still the basis of the business model for TV networks and advertisers alike, new shows, such as NBC’s “The Blacklist” or Fox’s “Sleepy Hollow,” are posting substantial increases in Live +7 ratings. As networks allow the popularity of their new series to grow and gain followers throughout the week, advertisers aren’t paying for views they get seven days down the road.
According to Stelter, “This is simultaneously good and bad for [broadcast networks] — good because a higher total rating after seven days helps prove that television networks can still spawn hugely popular shows, even in an age of media fragmentation, but bad because advertisers aren’t currently paying for all the viewers who come along later. Changes in viewer behavior continue to outpace changes in the television business model.”
Because of this, live TV viewing is now just the starting point. Even though many viewers still watch live to avoid spoilers, many people wait for the show to get a full-season pickup before even beginning to watch.
Read more at The New York Times.
Brief Take: While next-day ratings remain a large part of TV’s business model, live viewing is becoming less and less the norm. With binge viewing, VOD and DVR, consumer behavior continues to outpace both TV measurement and business models, and TV networks quickly need to figure out how to convert that viewing into advertising dollars.
[Image courtesy of NBC]
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