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FillmoreSlim · 06-02-2003, 12:35 PM

TiVo to sell data on viewing habits of subscribers
DVR SERVICES TRACK WHICH COMMERCIALS ARE WATCHED, SKIPPED
By Sam Diaz
Mercury News

TiVo, the San Jose company known for re-inventing television viewing through digital video recording, will begin selling advertisers data it collects on the viewing habits of its subscribers.

Through a back-end technology of TiVo's DVR service, TiVo executives can see which shows its users are watching live or recording and track when commercials are being watched, re-wound and watched again or zipped past through the DVR's fast-forward feature.

Compiled in a quarterly report -- generic for now, but customizable for specific clients later -- the data looks at how the 700,000 TiVo subscribers across the country are reacting to television commercials.

TiVo boxes download scheduling information over phone lines each night. They also upload a record of what was watched, recorded and skipped.

TiVo says it does not identify individual viewers but will customize the report to track, for example, viewing habits of Silicon Valley subscribers during the Super Bowl, the finale of American Idol or the Academy Awards.

``This is fascinating information,'' said Josh Bernoff, principal television analyst with Forrester Research in Cambridge, Mass.

``Privacy is an addressable concern,'' he said. ``Theoretically, TiVo knows a huge amount of information about an individual. But they've sworn not to use it except in aggregate and are adamant about sticking to that pledge,'' said Bernoff, who does not have a business relationship with TiVo. ``As long as TiVo stays and business and maintains that pledge, I don't think it's a problem.''

Ratings tell advertisers which shows people are watching. But TiVo can tell them which shows have the highest rates of commercial skip-throughs or at which point in the commercial break that viewers reach for the fast-forward button.

``We're seeing trends where interest is being lost during certain shows,'' said Marty Yudkovitz, TiVo's new president and a former NBC executive ``This microcosmic data is in class of its own.''

Yudkovitz said he thinks TiVo has a ``gold mine'' of data. ``Once one advertising agency has the information and is using it, I don't know how the next one can live without it. Then come the networks. They'll need the data too,'' he said.

That's good news for TiVo, which has succeeded at building a brand name but has lagged in securing deals with the cable TV industry and it not yet profitable. Last quarter, the company brought in $28.5 million in revenue and reported a net loss of $7.9 million.

TiVo spent $300 million engineering the back-end viewer tracking technology during the development phase. The cost to crunch the numbers to create the reports -- even customized reports for specific clients -- is low compared to its value, Yudkovitz said.

``The margins are very, very high,'' he said.

Still, skeptics wonder how much value can come from the viewing habits of an elite group of users, those who have purchased a still-expensive product and pay a monthly premium.

Richard Fielding, vice president and director of research at Starcom USA in Chicago, thinks ad agencies will want to see the data initially, mostly because no one else is providing it.

``But does that mean that they'll come back quarter after quarter?'' asked Fielding, whose agency works with advertisers and networks to better understand media advertising.

06-02-2003, 12:35 PM
FillmoreSlim Confirmed User Join Date: May 2003 Location: streetz Posts: 1,236	Who has Tivo? TiVo to sell data on viewing habits of subscribers DVR SERVICES TRACK WHICH COMMERCIALS ARE WATCHED, SKIPPED By Sam Diaz Mercury News TiVo, the San Jose company known for re-inventing television viewing through digital video recording, will begin selling advertisers data it collects on the viewing habits of its subscribers. Through a back-end technology of TiVo's DVR service, TiVo executives can see which shows its users are watching live or recording and track when commercials are being watched, re-wound and watched again or zipped past through the DVR's fast-forward feature. Compiled in a quarterly report -- generic for now, but customizable for specific clients later -- the data looks at how the 700,000 TiVo subscribers across the country are reacting to television commercials. TiVo boxes download scheduling information over phone lines each night. They also upload a record of what was watched, recorded and skipped. TiVo says it does not identify individual viewers but will customize the report to track, for example, viewing habits of Silicon Valley subscribers during the Super Bowl, the finale of American Idol or the Academy Awards. ``This is fascinating information,'' said Josh Bernoff, principal television analyst with Forrester Research in Cambridge, Mass. ``Privacy is an addressable concern,'' he said. ``Theoretically, TiVo knows a huge amount of information about an individual. But they've sworn not to use it except in aggregate and are adamant about sticking to that pledge,'' said Bernoff, who does not have a business relationship with TiVo. ``As long as TiVo stays and business and maintains that pledge, I don't think it's a problem.'' Ratings tell advertisers which shows people are watching. But TiVo can tell them which shows have the highest rates of commercial skip-throughs or at which point in the commercial break that viewers reach for the fast-forward button. ``We're seeing trends where interest is being lost during certain shows,'' said Marty Yudkovitz, TiVo's new president and a former NBC executive ``This microcosmic data is in class of its own.'' Yudkovitz said he thinks TiVo has a ``gold mine'' of data. ``Once one advertising agency has the information and is using it, I don't know how the next one can live without it. Then come the networks. They'll need the data too,'' he said. That's good news for TiVo, which has succeeded at building a brand name but has lagged in securing deals with the cable TV industry and it not yet profitable. Last quarter, the company brought in $28.5 million in revenue and reported a net loss of $7.9 million. TiVo spent $300 million engineering the back-end viewer tracking technology during the development phase. The cost to crunch the numbers to create the reports -- even customized reports for specific clients -- is low compared to its value, Yudkovitz said. ``The margins are very, very high,'' he said. Still, skeptics wonder how much value can come from the viewing habits of an elite group of users, those who have purchased a still-expensive product and pay a monthly premium. Richard Fielding, vice president and director of research at Starcom USA in Chicago, thinks ad agencies will want to see the data initially, mostly because no one else is providing it. ``But does that mean that they'll come back quarter after quarter?'' asked Fielding, whose agency works with advertisers and networks to better understand media advertising. __________________ New and Improved Chameleon Submitter 2.0 - Submit to TGP and MGP sites - GET YOURS TODAY!