When my family stays in a hotel,
one of our least favorite differences between the hotel and our home is the
fact that the hotel doesn't have DVR. Due to this fact, we must be patient
while we watch TV. DVR has allowed us to skip commercials and we had grown
accustomed to that way of watching TV.
I remember during the times when my
family had DVR service, my friends would ask me if I wanted to go to the movie theater to watch the newest movie. I would ask for the title and then tend to
respond that I had not heard about that movie. Because I was skipping
commercials, I wasn’t seeing movie trailers.
I believe that DVRs have caused a
decrease in TV advertising revenue and an increase in the amount of advertising
found online. One cannot skip through online commercials. Youtube has also been
showing more ads before videos.
Very rarely does the American
public look forward to watching commercial. One example of Americans anxiously
waiting for commercial breaks is the Superbowl. Despite DVR servicing (and most
likely use during the Superbowl), at the time of this game, commercials are
still viewed, at least the first time.
Television advertising was a huge
amount of revenue for most major companies in America for a very long time.
Suddenly, these companies need to find a new way to reach the American public.
All in all, Mr. Ted Harbert’s views
are valid. DVR is leading to a decrease of revenue for television
advertisements. However, one must think about the claim Mr. Harbert has in this
situation. He is not the CEO of a company in the usual fashion, but he must
ensure that NBC is bringing in enough revenue to make a profit, or at least
break even. If people aren't watching commercials, companies will stop creating
and selling commercials. When this happens, NBC will lose its customers that
pay to run an ad on the network. If this happens for long enough, NBC could
very realistically collapse as a corporation. With NBC’s long heritage of
success as a TV programming station, I would certainly dislike being the man under
whose care this collapse occurred.
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