Abstract
A personal video recorder (PVR) is a video recorder with a hard drive or a PC with an integrated TV tuner card. Instead of recording the movies on an analogue tape, they record content digitally on the PVR’s hard drive. PVRs can be connected to the Internet, allowing users to (illegally) massively distribute recorded content online using for example peer-to-peer networks like KaZaA. The PVR technology enables new services, which influence the traditional business models of broadcasters (free and pay TV). On the one hand shows containing commercials are recorded and stored digitally on a user’s hard drive, which allows easy skipping of ads. Some PVRs even automatically skip ads while playing the recording. On the other hand pay TV content is widely available for free on illegal channels like KaZaA reducing the uniqueness of pay TV offerings. This article discusses the risks arising with increasing diffusion of PVRs. Depending on the chosen formats the risks for the business models of free and pay TV stations are presented. The article finally provides strategic implications for TV stations facing the competition of PVRs.
Published Version
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