21-Sep-99

PVR Poised To End Free Network TV

According to Josh Bernoff of Forrester Research, the end of free Network TV will come sooner than anyone has expected. Bernoff predicts nothing short of the fastest consumer electronics launch in history for the personal video recorders (PVR) developed by TiVo and ReplayTV. These digital machines catalogue programs for easy recording and enable viewers to pause and rewind live shows while they are recording. PVR owners can watch what they want, when they want, and can more easily skip commercials. The machines canít yet store many hours of television, but they can be connected to a VCR. Bernoff believes every consumer electronics manufacture will offer their own recorders within two years and that they will be such a hit that sales will skyrocket to 14 million in five years. He says the success of the PVR will ultimately lead to the end of free television. Bernoff contends that in 10 years, commercial viewing will be cut in half and, without advertising dollars, most quality shows will be sold to pay networks. The free networks will be left with the bottom-of-the-barrel productions.