New ad zapper has TV networks worried about sales

Thanks to Jim S. for the article.  Please respond to one of these questions:

  • should the government prohibit private companies from interfering with advertising (i.e. the primary source of revenue for network television) in broadcast media that is distributed freely? Couldn’t that be considered an unfair business practice for the advertisers?
  • What are the economic consequences of a diminished efficacy of network advertising?
  • Will the marketplace become more or less competitive / more or less easily dominated by massive international firms somehow?
  • If the major networks failed (due to severely decreased ad revenues) what would that mean for the media landscape as a whole?

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5 Responses to New ad zapper has TV networks worried about sales

  1. Johnny Escobar says:

    Question: If the major networks failed what would that mean for the media landscape as a whole?

    It is hard to imagine television without the three major networks. ABC , NBC and CBS have been providing broadcasts since the 1940s. The failure of these major networks makes me think of the financial crisis that saw the demise of the highly successful Lehman Bros firm. The failure of this major financial institution lead to a domino effect that negatively impacted the US economy. Would the failure of NBC, CBS or ABC have the same impact in the media world? It is an interesting and almost scary proposition to ponder. What would the Super Bowl or the Stanley Cup finals be like in the hands of an independent small network? It would no doubt effect how americans view television as it is such a huge part of our society. I believe that new contracts would have to be made, and entertainment leaders in Hollywood and New York would find a way to keep these networks afloat, because their failure would be very detrimental to the entertainment world as a whole.

  2. Rob Jewett says:

    Should the government prohibit private companies from interfering with advertising (i.e. the primary source of revenue for network television) in broadcast media that is distributed freely? Couldn’t that be considered an unfair business practice for the advertisers?

    When I record a program, I continue to watch the commercials as I skip them. Most of the commercials that I see are ones that I’ve seen a hundred times before and immediately know what they are trying to sell. I completely agree with this quote, “In an odd way, fast-forwarding through commercials often makes people concentrate more intensely on the TV and stop if something interests them”. I find myself doing this sometimes as well. If something is unfamiliar to me, I normally go back and watch it just in case in case it’s entertaining. I don’t think the government should prohibit this kind of technology on DVRs but Dish Network should recognize they can charge a lot more to consumers for this convenience. There are plenty of ways companies try and get ahead, and this is just one of those times that networks are going to have to figure out a solution.

  3. Ryan Putman says:

    Should the government prohibit private companies from interfering with advertising (i.e. the primary source of revenue for network television) in broadcast media that is distributed freely? Couldn’t that be considered an unfair business practice for the advertisers?

    This is a difficult decision for me since i at times absolutely despise advertisements, especially when I’m watching “the Office” or “Parks and Recreation”. I would absolutely love to be able to skip through the commercials and i feel is the main reason i tend to watch more Netflix and OnDemand services where FastForwarding through commercials is allowed. Major networks like the question states are funded primarily through advertisements and is the only reason I am willing to put up with them. If they are taken out it is very likely that some networks will go out of business. Its not a risk I am willing to take and therefor am in favor of the government stepping in and ending this type of technology. This is a love hate relationship between myself and advertisements but i have to vote to keep them.

  4. Allie Lord says:

    Question:should the government prohibit private companies from interfering with advertising (i.e. the primary source of revenue for network television) in broadcast media that is distributed freely? Couldn’t that be considered an unfair business practice for the advertisers?

    Normally, I am not a fan of government interference with private companies, however this technology goes too far to be allowed. Advertising, as stated in the question, is well known as the primary source of revenue for networks, and when advertisements start getting skipped and advertisers start paying less, eventually the major networks will collapse. Technology allowing people to skip ads may be a big draw for Dish, but in the end will significantly hurt the entire media industry. If Dish does not see this, then the government must step in to stop the major damage that is about to be done to television and advertising industries.

  5. Will the marketplace become more or less competitive / more or less easily dominated by massive international firms somehow?

    I think that ad skipping will make the marketplace more competitive for ad space, but economically less competitive. With less opportunities to put ads in front of consumers, larger companies will begin to dominate the media channels. Smaller companies will have less opportunity to advertise on television, thus making it easier for the massive firms to control consumer behavior. With less advertising, consumers will become brand loyal to those companies that have enough money to advertise instead of choosing among many familiar brands seen on television. Although this new DVR feature is extremely beneficial for the dish customer, I think it will ultimately hurt both the firms and consumers in the long run.

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