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Pvr Case Study

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Unit II Case Study Instructions 1. Discuss how PVRs will affect the demand from advertisers.

In order to examine the effect that PVR has on advertising companies, we need to consider the needs of society and how will it benefit from this video recorder.
Comfort is an important issue in today’s society. The easy programming and the large video recording space, which reaches up to 60 hours, makes this devise very desirable. Moreover, the flexibility to play the recorded program repeatedly at the viewers’ most convenient time removes the need to schedule your day based on the programs.
Advertising Companies depend on programs to promote products or services based on the client. However, because of PVR the viewer is capable of forwarding the recorded program, and skipping easily advertisements during the show, thus decreasing the advertising product popularity and as well affecting the advertisers demands.
Due to the flexibility of fast-forwarding viewers will without knowing skip advertisements that could have been important for their wellbeing. The requests of these advertisements will without decrease affecting their revenue as well as the sponsor advertiser company.

Article Personal Video Recorder

2. Suppose you are in charge of setting the price for commercial advertisements shown during Enemies, a top network television show. There is a 60 minutes slot for the show. However, the running time for the show itself is only 30 minutes. The rest of the times can be sold to other companies to advertise their products or donated for public service announcements.
Demand for advertising is given by:
Qd = 30 - .0002P + 26V

In which Qd = quantity demanded for advertising on the show (minutes),
P = the price per minute that you charge for advertising, and V is the number of viewers expected to watch the advertisements (in millions).

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