About Media Industry

BNET Media provides daily industry trends and news coverage with insights for managers and executives in publishing, print, broadcast, film, and online media. In addition to media company profiles, we bring you industry analysis on new partnerships, media products, mergers and acquisitions, labor and cost management, media buying, investments and a host of other important business issues.

Nielsen Data Shows DVRs Are Great, and Awful, for Broadcast TV

By Catharine P. Taylor | Oct 14, 2009

As followers of Nielsen’s attempts to grapple with new technology know, the TV ratings company has expanded what it measures in recent TV seasons to include at least several days worth of DVR viewing, to create a more accurate picture of how many people are really watching TV shows, and when they are watching. Now, the first set of weekly ratings for this season that also include seven days of DVR viewing  are in, and the results show what a thorny issue the DVR is becoming for TV, particularly broadcast TV, which relies solely on advertising for revenue.

The great news? When you add in time-shifted viewing via DVR, it becomes clear that the audiences for a number of series are substantially bigger than previously thought. The awful news? The other key benefit of a DVR is its ability to skip the commercials. Therefore, the more people are watching a show on DVR, the less impact the commercials originally bought for that show will have on the total audience. Ouch.

Here are some stats, with a tip of the hat to my friends at Mediaweek, who published a full chart of the ten primetime broadcast shows* that had the most DVR viewers last week:

  • Among the shows listed, the percentage of people who watched the programming via DVR ranged from 9 percent (CBS’ NCIS) to 34 percent (Fox’s “Fringe” which had by far the least viewers overall at 7.3 million).
  • Overall, the average percentage of time-shifted viewing among these series is 17.2 percent (or 16.1 percent if the two outliers above are thrown out).
  • The show that gets the most DVR viewing is ABC’s “Grey’s Anatomy”, with 2.97 million viewers; the show with the least is Fox’s “Bones” with 1.87 million.

No matter how you slice it, DVR viewing is becoming a more important factor, particularly for one-hour dramas. Every show on Mediaweek’s list falls into that category. If you’re a ratings wonk, this demonstrates that perhaps these shows have a greater hold on the population than we thought. To see a 17 percent gain in overall viewers because of time-shifting behavior is huge.

But the problem, as I said up above, is that these viewers are also skipping the commercials. According to a study of its subscribers released by TiVo last month, 73 percent of the audience for TV dramas skips the commercials, and by and large, the ad-skipping behavior increases with the most popular shows because viewers are so wrapped up in them.

This has the potential to create a terrible problem for the broadcast nets. DVR penetration and ad-skipping behavior is still increasing, and so the value of even the most popular shows to advertisers can only diminish. The answer seems to be an ad model change, if broadcast TV, DVR makers and advertisers have the temerity to try it. The 15-second pre-roll before watching online video is starting to sound pretty good.

*The series that made the top ten are, in descending order: Grey’s Anatomy, The Mentalist (CBS); House (Fox); CSI (CBS); FlashForward (ABC); Fringe; NCIS; Criminal Minds (CBS); CSI: Miami (CBS); Bones (Fox).

Previous coverage of DVRs at BNET Media:

Catharine P. Taylor has been covering digital media and advertising for almost 15 years and is a frequent speaker at conferences about media and advertising. She posts daily to BNET Media, writes the weekly Social Media Insider column for Mediapost and also has her own advertising blog, Adverganza.com. Follow her on Twitter or subscribe to the BNET Media Twitter feed.

BNET User Analysis

Web Buzz:
  • Nielsen: Average US User Now Spends Over 4.5 Hours Per Month on Facebook

    Inside Facebook - 129 days 15 hours 35 minutes ago

    Research film Nielsen has just released new metrics on the web’s largest and stickiest websites. The results? You guessed it: users are spending more time on Facebook than other popular sites from Google, Yahoo, Microsoft, and AOL. Top 10 Parent Companies/Divisions for June 2009 (US, Home and Work) Source: Nielsen NetView In June, time spent...

  • aposInternet Meter' Will Measure Web TV Audience

    Media Bistro - 72 days 14 hours 38 minutes ago

    Has media measurement company Nielsen created the tool that will help monetize online television? We won't know for awhile, but if Nielsen's "Internet Meter" for measuring online TV audiences proves reliable, it will eliminate much of the mystery regarding metrics for the fast-emerging viewing platform. As Sarah Perez explains over at...

  • Social Network User Loyalty Erratic

    BNET Technology - 140 days 14 hours 43 minutes ago

    I’ve mentioned before how social networks are in a fad business. Recent data from Nielsen Online suggests that even more strongly. The rapid change in the fortunes of social media companies are enough to make your eyes cross — and to reconsider just how most tech companies should hedge their strategic bets, given that today’s sure thing...

  • Kentucky Derby Races to Highest Ratings Since 1992

    TVWeek - 200 days 9 hours 40 minutes ago

    Saturday evening’s telecast of the Kentucky Derby on NBC was the highest-rated in 17 years. From 6-7 p.m. EDT, the race scored a 10.2 rating/22 share among households, according to overnight ratings released by Nielsen. This year’s Derby marks the franchise’s best performance since 1992 and posted a 7% increase over last year. NBC Sports...

  • 'Idol' Tops DVR Playback Chart

    Adweek - 339 days 13 hours 42 minutes ago

    NEW YORK Broadcast shows had the largest audiences tuning in via DVR in 2008 while cable programs posted the largest rating gains on a percentage basis when DVR playback was factored in (a reflection of their smaller audiences), according to a tally released today by Nielsen Media Research. Nielsen tallied gains in average household viewing and...

Links from the Web Buzz:
 
Reply to Story

BNET TalkbackShare your ideas and expertise on this topic

Subscribe to this discussion via Email or RSS

  •  
    1

    RushedLimbaughed

    10/15/09 | Report as spam

    RE: Nielsen Data Shows DVRs Are Great, and Awful, for Broadcast TV

    The best thing would be to scrap broadcast and cable tv all together, and place everything on the web. Hulu is brilliant in that I watch the shows when I want in sharper definition. I will even watch a commercial if it is 15 seconds or less. OR provide me the option of a 1 minute commercial at the beginning, and no further commercials afterwards.

    HD TV + HULU = more tv watching and more commercials being viewed. TV is FORCING people to use DVRs because of all the commercials.

    Television, radio, etc. are all done for as advertising mediums. But I will keep my Sunday newspaper inserts.....

  •  
    2

    Cathy Taylor

    10/16/09 | Report as spam

    RE: Nielsen Data Shows DVRs Are Great, and Awful, for Broadcast TV

    Hi Rush!

    Sorry about the Rams bid. Anyway, you are sort of right. The big problem with the Hulu model--which I need to illuminate in further posts--is that it doesn't carry enough advertising. Hulu charges a higher rate than the same spot on broadcast, but there obviously aren't as many viewers or as many spots. That's a problem the industry needs to address, sooner rather than later.

    Thanks for commenting!

    Cathy

  •  
    3

    ChrisPiper

    10/22/09 | Report as spam

    RE: Nielsen Data Shows DVRs Are Great, and Awful, for Broadcast TV

    I believe advertisers are taking notice due to my industries research that businesses are wanting to know more about non-traditional advertising - dimensionalizing their brand to engage, motivate, and leave lasting impression with their respective target audience. the more viewers that DVR the less interest there will be to advertise in the trditional manner. Chris Piper / www.breakoutsm.com
    Question: If you have a DVR do you watch the commercials?

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement