Lost Revenue? Nope ... Just Lost Opportunities
from the really-red-herring dept
Whenever we hear about established industries whining about how much money they're losing from alternative forms of media consumption, we just shake our heads. If you do too, then brace your neck before reading on. A new study by Accenture says that TV networks will "lose" $27 billion in the coming five years because of ad skipping by DVR users. Not being able to read the full story on AdAge, we can only assume that Accenture thinks advertisers will pull back from the networks to the tune of $5-plus billion per year, simply because DVR watchers can skip ads. Not likely. The connection is highly dubious and the figures are entirely far-fetched. Yet even more troubling is the age-old "lost money" methodology. Each ad skip does not proportionally diminish the network's coffers -- no money is being subtracted from their bottom line. Rather, any "losses" from ad skipping would come from the network's inability to adapt to new trends and attract those dollars elsewise. The networks are losing money to ad-skipping no more than record companies are losing money to downloads. The quicker they see these as lost opportunities, instead of lost dollars, the better for them.