Black box breaks TV adverts' grip

By NAOMI MAHON

A simple black box, similar to a VCR, sits in Greg Nikoloff's suburban Auckland home, next to his television set.

The only thing that makes this box look even slightly interesting is a small logo on the top right-hand corner - a cutesy little television with bendy rabbit ears and the word TiVo emblazoned on the screen.

TiVo is a digital video recorder (DVR) that enables Nikoloff to zap through television advertisements at the rate of one minute a second.

DVRs have been available in Britain and the United States since 1999, allowing viewers to watch ad-free television.

DVRs such as TiVo use digital technology to record programmes on to a hard disk.

They record as viewers watch past segments, letting them skip advertisements, pause, rewind, replay instantly and frame-advance.

One of the latest DVRs can edit out advertisements altogether.

The number of DVR users in the US has reportedly grown to more than one million, prompting media companies to view the technology as serious threat.

DVRs could destroy the traditional television commercial and expose broadcasters to a situation where viewers trade programmes and movies through the internet.

But New Zealand broadcasters and advertising agencies view the DVR as a distant threat.

Their relaxed attitude is based on the fact that DVRs are not available in New Zealand and have not reached critical mass in the North American or British markets. So why worry?

But since hooking up a TiVo to his television two years ago, Nikoloff watches less then 10 per cent live television. Does he fast-forward all ads?

"Definitely."

Nikoloff records the 6pm news every night. He starts watching about 20 minutes into the broadcast, "blasts" through the advertisements, and by 7pm is back watching live TV.

Nikoloff knows of two other people in the country who use TiVos to skip advertisements.

And although TiVos in New Zealand are not fed programme information via a subscription - "that's what gives them their killer punch," says Nikoloff - he thinks they are still a "compelling product."

Former Colenso BBDO creative director and Saatchi & Saatchi consultant Len Potts believes there is a good chance TiVos will come to New Zealand and describes the technology as a loitering threat.

"Hopefully it will weed out some of the obnoxious junk that spews out of the TV."

Potts agrees that TiVos have the potential to severely affect television advertising, but does not think it spells the medium's end.

Instead, TiVo could lead to a lift in standards and force advertisers to find clever ways to push products.

Colenso BBDO creative director Mike O'Sullivan says TiVo will pressure clients and agencies to make ads that stand out in the clutter.

Paul Norris, co-author of a report on new TV technology for NZ on Air last year, says DVRs probably will not be available in New Zealand until a manufacturer or distributor thinks there is a market here.

"But they will work with any digitally delivered television, and considering about 40 per cent of households now have Sky, the market is beginning to look attractive."

TV3 and TVNZ agree there is risk associated with TiVo, but are unconcerned about the product's ad-zapping capabilities.

They say that unless the recorders take off in the US, they have little to worry about.

"We are way off from it getting any sort of critical mass here," says TVNZ communications director Glen Sowry.

"Even in the US, the network television operators are still the dominant broadcasters and while it is having some impact, it is still some way off being a major issue."

TV3 managing director Rick Friesen agrees the technology is too new and undersubscribed to be of any serious concern.

"There are always commercial threats. TiVo just doesn't rate that high on the spectrum now ."

But TV3 and TVNZ are keeping a close eye on overseas developments.

TiVo provides nothing new in principle - anyone with a VCR can fast-forward ads.

But Paul Norris says that if TiVo catches on, problems for advertisers will be extreme because the whole basis of commercial television will disappear.

Friesen and Sowry say that having a TiVo does not mean you always skim through the ads.

And they may be right.

Nikoloff watches some ads on his TiVo, but only new ones or ones he thinks might be interesting.

"There was a strange one on TV the other night that I went back and had a look at.

"If some ads are really interesting I might look at it two or three times. But with a TiVo if you have seen an ad already, you just skip it." "

For Saatchi & Saatchi Wellington media director Alistair Jamison, the day viewers choose not to watch television advertising is a long way off.

"We'd be mugs to think it's not going to be an issue. It's just not an issue we're worried about right now."