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Digital Video Recorders Give Advertisers Pause
Topic: Intellectual Property 9:22 am EDT, May 23, 2002

Digital successors to the VCR that eliminate the frustration of recording television programs have crossed a popularity threshold, raising alarm among advertisers and TV executives who see the devices as a threat to the economics of commercial television.

"The free television that we've all enjoyed for so many years is based on us watching these commercials," said Jamie C. Kellner, chief executive of Turner Broadcasting. "There's no Santa Claus. If you don't watch the commercials, someone's going to have to pay for television and it's going to be you."

Jamie Kellner hits the mainstream press. NYT's Amy Harmon on the confused economics of television media. I find it amusing that Kellner uses the concept of paying for television as a threat against piracy. I would contend that people want to (and do) pay for content because they dislike the annoying distractions and time burglars that are TV advertisements. Why doesn't he get this? Turner owns HBO, which owns the broadcast rights to the most successful cable series ever, which viewers are happily paying for.

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