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Ans. Broadcasters don’t have to develop their own TiVo-like systems, however, TiVo and other similar systems should support broadcasters by giving them some power or help. This could happen by, for example, helping broadcasters to show different ads to different viewers, according to their interests.
Q2. Should broadcasters try to block the sales of such devices legally on the grounds they contribute to copyright infringement? Or should they develop business models centered on viewers paying for content? In your answer, be sure to describe the threats and opportunities that the new recording devices and services represent for the TV networks and advertisers.
Ans. If we had to choose between the two options given, we’d rather say that broadcasters should develop business models centered on viewers paying for content. Nowadays almost every house has content paid channels, and people watch these channels more often than the free channels because of the better shows and movies these paid channels show. So if one of the free channels start showing better shows and movies and let viewers pay, there will be more loyal viewers to this channel, and so it is a good opportunity for advertisers. If these viewers are using TiVo and usually skip commercials, advertisers should start being very creative with their ads by, for example, having very bright and florescent colors which will attract viewers even when forwarding the ad.
Threats: ppl might skip ads/ ppl might not pay for such channels/ if the number of ads decreased, program quality will go down.
Opport: ppl will have ads recorded for later reference/ ppl will watch tv more often than before because they like it more with their systems/ networks might want to show more live shows so that viewers wont be able to skip ads easily.
Qa. Free television is possible because advertisers pay for the content by paying for commercials placed in the TV broadcasts with the expectation that consumers will watch them while watching the programs. With the new technology mentioned in this case, it will be possible to skip over the commercials. Is this technology going to eliminate free television?
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Ans. This technology wont necessarily eliminate free television. Advertisers could still have commercials, because of the reasons mentioned on the opportunities, however, they have many other ways to advertise other than on TV. Programmers shoud have deals with such systems.
Qb. How can marketers use this new technology to segment and reach target markets?
Ans. Marketers will be able to narrowly target users and deliver the right advertising to the right person. This could happen through the TiVo-like systems, which could use subscribers personal data for targeted advertising.