Marketing is broken, at least marketing as we know it. A non-marketeer dredges up the ugly and the beautiful in the marketing world.

Tuesday, February 01, 2005

WHY TiVo is disruptive

TiVo (or more generically, Digital Video Recorder) technology is disruptive because it fundamentally shifts the relationships in televised mass media.

Consider this analysis of the business model for broadcast television: The shows are bait, used to attract viewers, who are in turn sold, as a product, to advertisers, the actual customer.

DVRs turn all of that on its head, since they're regularly used to skip commercials. So now the product the networks sell is taking the bait while avoiding being sold. Worse yet, while product companies can at least charge more when supply dries up, the remaining viewers are actually worth LESS, especially considering that the average DVR user is likely to be both young and have more disposable income.

Count this one of many times you hope you're not in the TV/broadcasting business. How do you handle a product that refuses to be sold?


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