TV Networks Have Nothing to Fear from DVRs

(MoneyWatch)  What qualifies as a reasonable way to measure TV viewership moves much more slowly than the technological changes that shift our viewing habits. So, those of you who don't analyze the TV measurement biz might be surprised to learn that the networks only just started to count time-shifted viewing of series via digital video recorders (DVRs) during the 2007-08 season. That's when they agreed that the Nielsen ratings with which they would sell advertising would be so-called live ratings plus the next three days of DVR viewing, measuring whether those DVR viewers actually watched the commercials. This new ratings currency has been known in the the industry as C3.

Why did it take so long? The fear was that adding in DVR viewing would uncover ratings declines. Now, thanks to Magna Global, the results are in, and guess what? Ratings are either the same, or slightly higher.

The numbers were compiled between September and December of this year, and showed that ABC and Fox (not including the ratings powerhouse "American Idol", which starts its season in January) are the same when viewers tune in live as when DVR viewing is added in. For NBC and CBS, the ratings that include DVR viewing are slightly higher. That demonstrates a slight increase from last year's numbers at this time, when live ratings and DVR-inclusive ratings were the same for all the networks.

It is, of course, somewhat mind-boggling that it would take so long to agree on a way to reconcile TV ratings with viewing habits. Though DVRs make time-shifted viewing easier, watching TV at a different time than when it originally aired is as old as the VCR. And measuring TV viewing is only going to get more complicated. Soon, and the networks better be ready for this, much of the live market will simply go away, as viewers watch their favorite shows whenever they so desire not only via their DVR, but on their mobile devices, through streaming sites such as Hulu, and maybe other channels that haven't been invented yet. We ain't seen nothin' yet.