Advertisers & Networks May Have Reached DVR Concensus

Ever since its introduction the technology know as Digital Video Recorder (DVR) has been a major sore spot for both TV networks and the advertisers who fund the shows viewers watch on those networks.

The biggest question for the concerned parties was “what to do about the increasing number of people who record network TV on DVR’s.” The television stations have been pulled in both directions, on one end encouraging viewers to record by routinely scheduling top-rated shows opposite one another, while at the same time trying to hang on to its ad money. As one might guess, the attitude of advertisers is very clear — they hate the idea. Or, at least they use to.

Now, it would seem that advertisers have read the writing on the wall, and are also tired of beating their heads against that wall. They are now willing to negotiate with television networks and stations with a little something called ‘live plus 3′. This little known, but standard package, says that networks can be compensated for commercials that are viewed with 72 hours of their initial air date on any particular television program.

“‘Live plus three’ commercial ratings is where we need to be; that’s a place where we can hopefully come to terms,” says Mediaedge: CIA CEO Lee Doyle.

The old way of doing business stated that advertisers only paid networks when their commercials were seen live. With ‘live plus 3′ the networks can now get paid when the programs are seen delayed up to 72 hours. Of course, both sides have lulled themselves into thinking that the viewer watching the show on the DVR is not fast-forwarding through those commercials.

Some networks want that agreement stretched to a ‘Live Plus Seven” and it would appear that, in the face of the ever-growing demand of DVR use (up as much as 26% over last year in some U.S. cities), advertisers may even be willing to compromise to that level. Many are willing, but only if the networks can guarantee that viewers won’t skip over their ads. How the networks can promise that was not revealed.