The major networks will encounter some challenges as increasing number of users begin to buy PVRs. This is because it allows the viewers to choose to watch the programs that they want to and skip commercials at will. This takes the control over programming away from the networks to the customers themselves and hence presents problems for the major networks in placing advertisements.
Although the revenues may pick up to some extent because of the charge the networks may put forward for proving support services for the PVR, these may be wiped out as competition rises and ultimately the loss in advertisement revenue will hurt. Thus it can be concluded that revenues for such networks will suffer and alternatives may need to be explored to keep advertisement demand stable.
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