Media executives have been making a lot of noise lately about getting advertisers to pay for viewers who watch shows they have recorded four or more days after a program's initial airing.
Currently, they pay for viewers who see a commercial within the first three days of it being recorded. But as the DVR reaches 50% penetration in the country and people stockpile shows, TV network executives want to extend the window of counting viewers to seven days. Of course, many viewers skip ads anyway, but Nielsen claims close to 50% of people using DVRs do watch a lot of commercials.
But Rich Greenfield, an outspoken media analyst with the firm BTIG, says the entire three-day-vs.-seven-day debate is a distraction and that the industry needs to focus more on driving consumers to use video-on-demand (VOD).
"The industry must find a way to put a dramatically larger perentage of content on-demand, with targeted advertising and a lower ad-load," he wrote in report released Wednesday. "Nobody will use a DVR if they can get to whatever they want, when they want it, where they want it, especially if the ad load is lighter and the ads relevant."