Lots of interesting information about DVR use as well as On Demand viewing in a new report out today by MAGNA.
While younger audiences with DVRs certainly time-shift popular programs in meaningful numbers, the vast majority of these individuals still watch the vast majority of their television content through conventional means. Among the ~20% of households with DVRs in late 2007, 30% accounted for 71% of total DVR usage. Put another way, there is a subset of DVR users who are “power” users, but the vast majority of people use DVRs for a limited amount of programming. So although the frequency with which heavy DVR users can be reached is challenged, DVR proliferation does little to impact prime time network TV’s status as the single most wide-reaching environment for advertisers.
DVR households consume only a third of prime time content in a time-shifted manner. We forecast that 36% of the population will have DVR services by 2012, and presuming all ads were skipped (and that there was no value to a skipped ad) this would equate to a reduction of 11% of prime time ratings points 10 years after the advent of the DVR. This is equivalent to about 2 years worth of erosion due to viewing patterns shifting from broadcast to cable. But even the notion of erosion is a false one, as both cable and DVRs contribute to higher total viewership of television AND disregards that with annual population growth of 1% per year, total television impressions rise by about 20% over a 10 year period.
You can download the entire report by clicking here.