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November 28, 2005

Use your TiVo to watch ads

Ed Oswald at BetaNews has the story:

Most TiVo customers use the devices to skip over commercials within recorded shows. However, the DVR maker on Monday announced that beginning in the spring of 2006, it would use the set-top box to deliver on-demand advertising to interested subscribers.

TiVo says this is the first time television would be used as a medium to deliver such targeted ads to potential customers. These commercials would be found based on keyword searches, similar to the way Internet advertising currently works.

A user would be able to search for information on products or services based on particular needs. The ads would be set up into various categories, including automotive, travel, telecommunications and consumer-packaged goods. TiVo says the ads would be non-intrusive and interactive, and only offered on an opt-in basis.

I presume that these are more like infomercials than 30-second spots, but I’m still rather dubious. So is Wall Street:

“I continue to question whether any of these initiatives are going to be accretive to shareholders,” said April Horace, an analyst at Hoefer & Arnett Inc. “I don’t see the revenue opportunity anytime in the near term.”

TiVo shares fell 2.69 percent, or 16 cents, to $5.78 on Nasdaq at mid-afternoon.

Posted at 5:53 pm. Filed under Companies, TiVo

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