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[Phoenix]

When it debuted in 1999, TiVo (news - web sites) revolutionized the TV experience by wresting control of screen time from advertisers, allowing viewers to record shows and skip commercials. TiVo's slogan said it all: "TV your way."

Behind the scenes, though, TiVo was courting advertisers, selling inroads to a universe most customers saw as commercial-free. The result is a groundbreaking new business strategy, developed with more than 30 of the nation's largest advertisers, that in key ways circumvents the very technology that made TiVo famous.


By March, TiVo viewers will see "billboards," or small logos, popping up over TV commercials as they fast-forward through them, offering contest entries, giveaways or links to other ads. If a viewer "opts in" to the ad, their contact information will be downloaded to that advertiser — exclusively and by permission only — so even more direct marketing can take place.


By late 2005, TiVo expects to roll out "couch commerce," a system that enables viewers to purchase products and participate in surveys using their remote controls.


Perhaps even more significant is TiVo's new role in market research. As viewers watch, TiVo records their collective habits — second by second — and sells that information to advertisers and networks. (It was TiVo that quantified the effect of Janet Jackson's Super Bowl "wardrobe malfunction," reporting a 180% increase in the number of replays reported by viewers.)


For advertisers it's an extraordinary boon, a quicker and more effective way than they've ever had of measuring the effects of their TV commercials.


For viewers, TiVo's new strategy means the technology famously christened "God's machine" by Federal Communications Commission (news - web sites) Chairman Michael K. Powell is rapidly becoming a marketer's best friend, proving that try as they might, consumers cannot hide from marketing.

A whole lot more at the source

 

[AirBrian]

I saw this, too. I wonder how this will affect the 30-second advance hack. If they remove that, there'll be hell to pay. HELL!

 

[Manabanana]

That's disgusting.

 

[impirius]

Remember folks, starting July of next year, it'll be illegal to sell equipment that ignores the HDTV broadcast flag that specifies what you can and can't do when you record television shows. Pick up a pcHDTV card while you still can and have it on hand for making a homemade PVR... that's why I'm doing, anyway.

 

[MIMIC]

Commercials > Pop-ups

 

[luxsol]

As long as it doesn't interfer with what I'm fast-forwarding... what's the harm in something that i won't be paying attention to in the first place? If there's a delay while those ads come up... yeah, HELL TO PAY!

 

[DaCocoBrova]

I was just talking to one of my clients, and he kept going on and on about how great TiVo is. I'm almost sold, but there's one issue...

How does one get recorded content off the TiVo and on to a PC?

 

[Vlad]

While it is generally irritating, and really does sound like one of those "slippery slope" kind of situations, I have to say that I won't be overly bothered by it as long as the things don't interrupt normal operation. If I can still fast forward at the same speed, and don't have to wait for some stupid banner to display before I can resume playback, then I'm fine just ignoring the stupid thing.

 

[mrklaw]

I was just talking to one of my clients, and he kept going on and on about how great TiVo is. I'm almost sold, but there's one issue...

How does one get recorded content off the TiVo and on to a PC?

You need to hack it. Plenty of info over at www.dealdatabase.com

I'm fine with DRM flags saying 'you can't copy this to PC, or you can't save to VCR'. I don't expect there to be a flag saying 'you can't FF'. You could do that with a VCR.

 

[kaching]

I agree with luxsol and Vlad.

 

[WasabiKing]

As long as it doesn't interfer with what I'm fast-forwarding... what's the harm in something that i won't be paying attention to in the first place? If there's a delay while those ads come up... yeah, HELL TO PAY!

Ditto. Now the reason why this was done was because the networks were pissed that they were losing ad views, and threatened to block TiVo from their networks.

 

[AirBrian]

Ditto. Now the reason why this was done was because the networks were pissed that they were losing ad views, and threatened to block TiVo from their networks.

Which is also why TiVo removed the 30-second skip button on the remote. (But they were nice enough to keep it in the software so you could easily replace the end-of-program button's functionality with that.)

 

[Xenon]

Of course with this extra income they will be dropping the price of the monthly fee . =P

I just picked up a tivo and still have 2 weeks to take it back. I think I may do that now

 

[Flynn]

Just wait until they figure out that they can sell black letterbox bars as ad space.

 

[Escape Goat]

Sweet, I can use this article for my marketing project.

 

[xsarien]

God, I can't imagine what they're planning for people like me who just use the free, basic TiVo service.

 

[WasabiKing]

Of course with this extra income they will be dropping the price of the monthly fee . =P

doubt it, TiVo's profit margin is real low as is. And if it's not for you, it's your loss. TiVo has really changed the way I watch TV now.

 

[Phoenix]

doubt it, TiVo's profit margin is real low as is. And if it's not for you, it's your loss. TiVo has really changed the way I watch TV now.

They changed the way I watched it to - I was paying money to know what was on Fortunately when I migrated to Comcast that problem was partially resolved..

 

[Mashing]

I love my TiVo so much that I really don't care if they do this or not. I'd put up with quite a bit because TiVo kicks so much ass.

 

[karasu]

Do they have any competition? if so, surely this gives them a leg up.