Key Consumers Will Sacrifice Convenience, Cash for Ability to Skip TV Commercials; Less Likely to Trade Their Privacy

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Key Consumers Will Sacrifice Convenience, Cash for Ability to Skip TV Commercials; Less Likely to Trade Their Privacy

    MENLO PARK, Calif., March 10 /PRNewswire/ -- New research from Knowledge
Networks/SRI shows that early adopters of home media technologies are willing
to pay a significant price -- in dollars and convenience -- for the capability
to bypass commercials in television programming; but many may not be willing
to offer up information on their viewing habits as part of the bargain.
    The findings come from two recently released reports -- All Things Digital
and How People Use(R) Interactive TV -- published as part of The Home
Technology Monitor(TM), a service tracking consumers' ownership and use of
media technologies.  The data show that awareness of digital video recorders
(such as TiVo(R)) -- which enable ad skipping at the push of a button -- has
risen from 56% in 2002 to 72% among early adopters.
    Though 63% of these high-tech consumers say that watching commercials is a
fair price to pay for TV programming, an even higher proportion (72%) do not
think that DVR ad-skipping capabilities should be restricted or eliminated.
This sentiment was stronger among younger respondents (86% of those ages 18 to
34) than older ones (66% of those 50 or older).
    Early adopters also said -- by a three to one margin (74% versus 22%) --
that the ability to skip commercials is more important to them than being able
to watch programs "on demand" (at the time most convenient to them).
    About 5% of early adopters have a DVR, and 14% of non-owners say they
would be "very interested" in paying $10 extra per month for a set-top box
with a DVR built in.
    Newer DVRs and digital set-top boxes have the capacity to capture users'
viewing, pause, and replay data -- information that can be collected by the
service provider.  Knowledge Networks research shows that 57% of those with
advanced TV services agree with the statement, "No one should be able to find
out any information about what I watch."  Among these privacy-minded
consumers, only 23% said they would be more likely to share their viewing
information if they were offered incentives (such as discounts on their TV
service).

SOURCE Knowledge Networks

http://www.knowledgenetworks.com
CONTACT:
David Stanton, Director of Marketing
Communications of Knowledge Networks, +1-908-497-8040, or
dstanton@knowledgenetworks.com