Philips Device Could End Ad-Skipping -- But It Won't

Philips has invented a device that would force DVR owners to watch commercials during recorded programming. According to a recently published patent, the technology would work inside a set-top box and could be applied on a program-by-program basis. Before watching a recorded show, viewers could be given the option to watch the ads or pay a fee not to watch them.

However, before advertising officials decide to break out the champagne, they need to understand that the Philips invention is about eight years too late. And here's why:

1. Current Owners Would Revolt
DVRs are now used by more than 10 million Americans and they are happily using the ad-skipping feature. In addition, millions more are aware of the feature and, consequently, are considering buying a DVR to take advantage of it. In other words, you can't put the genie back in the bottle. If a cable or satellite operator suddenly charged for the right to fast-forward past ads, DVR owners would erupt in protest. Plus, the policy change would curb future DVR growth because the technology would suddenly become victim to negative word of mouth.

2. DVR Companies Would Provide an Alternative
If the cable and satellite providers begin charging for ad-skipping, it would be a dream come true for TiVo or any other DVR service. They would continue to offer ad-skipping for free, which would eventually enable them to lure away current and future DVR subscribers in the cable and satellite audiences.

So, while clever and innovative, the Philips device faces some major obstacles. In fact, I predict that it will fail.

It's not the answer to the problems of the advertising community. Advertisers need to develop more creative ways to produce and distribute messages rather than trying to stop DVR owners from being able to skip them. And I believe it will happen -- sooner than later.

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