Monday, December 1, 2008

TIVO Attack!

So I don't have a Tivo or generic DVR (shocking I know) and about the only reason that I manage to survive this horrific scenario is that I currently watch very little television.

It's pretty much some sports, a little Daily Show, and maybe some scrubs re-runs. How do I manage with so little TV you ask, I spend time online and I work the Netflix account.

This is all really just to say that everyone that I know with a Tivo/DVR loves it and swears they don't know how they lived before. For some slightly more concrete proof, of albeit back of the napkin style calculation we can turn to Justin Wolfers at the Freakonomics site...

What about the gains to the average American?

Time use data tell us that he watches 2.6 hours per day, or 18.3 hours per week; with TiVo, he can watch this programming in around 12 hours, saving 6 hours.

Average hourly earnings are around $18, suggesting that TiVo saves time that could otherwise have been sold for around $108 per week. We should also add in the benefit of higher quality television — around $11 per week — and subtract the cost of the annoying service charge, which is around $3 per week, yielding net benefits of $116 per week, or $6,000 per year. The net present value of this flow is around $120,000 per person, or perhaps around a quarter of a million dollars per household. Wow.
That's a pretty blatant argument supporting geting a Tivo/DVR especially considering many cable packages will throw one in these days or failing that you can get one for less than $200. Which makes the fact that only about 3 in 10 American households have one astonishing (factoid via Freakonomics).

How will TV survive once word gets out and everyone gets a Tivo? ESPN Corporate has some ideas...

It's also worth remembering how Tivo came into Bucky, Satchel, and Rob's life...

No comments:

Post a Comment