DVRs vs Online Video: Which Will Win the Battle for Consumer Viewing Time?

Jim Nail

Since the introduction of the DVR more than a decade ago, consumers have learned they don't have to conform their lives to broadcast programmers' schedules in order to watch their favorite TV shows.

Along come online sources like HuluPlus, or the network's own websites promise even more convenience: Get any episode of any show with no need to remember to record it. But adoption is hampered by the awkward viewing experience of the cramped screens of laptops, tablets, and smartphones.

Welcome to TV viewing in the Age of the Customer. Consumers want their favorite shows when they want them, on their preferred device, with little or no effort on their part.

Linear TV, DVRs and today's online viewing experience all fail on at least one of these dimensions. Viewers increasingly cobble together a mix of sources and devices to create this level of convenience, and each of these players vies to capture more of viewers' time by improving its offering.

In my new report, "How Online Video Will Challenge DVRs' Role," I delve into how these two sources of video entertainment vie to meet consumers' increasing expectations. DVRs have the advantage of incumbency, while online viewing offers greater flexibility.

Let the battle begin!

Deals and IPOs in video entertainment and advertising: an inflection point or bubble?

Jim Nail

A spate of events this month argues that the industry that revolves around video entertainment and advertising (I no longer call it the "television" industry!) has entered a period where long-delayed change will burst out:

  • Video ad networks/technologies YuMe and TremorVideo both went public. While neither was blockbuster, these IPOs signal that investors have enough confidence in the future of digital video that they'll put some chips on the table. They see advertisers using online video to extend their TV campaigns and this sector growing at rates far higher than the advertising market as a whole. 
  • Two $400 million + deals for cross-device video ad technologies. The much-hyped AOL/Adap.tv deal and the quieter Extreme Reach/DG deal reflect different corporate strategies, but both are rooted in the idea that the distinctions between TV and digital video will continue to diminish. Marketers increasingly realize they must put their sight/sound/motion messages on every device if they hope to achieve the reach that TV alone used to deliver.
  • CBS/Time-Warner dispute. The mutual benefit of carriage fees has made the programmer/distributor relationship cozy for years. Now this relationship is fraying, and outright wars that include blackout of stations like the current CBS/Time-Warner fight have become increasingly common in the past couple of years. The lure to programmers of streaming their programs online increases in direct proportion to how contentious this relationship becomes.  
Read more