Essay: Impact of the PVR

Sample Essay

The impact of the PVR on the consumers is that they are now in a position to be able to skip commercials at their will. Since consumers derive utility from the programs that they watch while utility can be said to be reduced via having to watch commercials or even turn negative, it can be said that consumers would want to exercise the option to “snip” commercials if a product such as the PVR allows them the ability to do so (Pierson, 2009).

This will have a marked impact on the demand from advertisers. Since consumers now have a choice to not want to view the commercials that advertisers want to put across to their target market, advertisers will see the utility of putting across their commercials on cable television channels dropping which will translate into less benefits for them in terms of revenue growth. This can be interpreted as a shift in the downward sloping demand curve for advertisements by advertisers to the left without any change in the elasticity or the slope of the curve (Mankiw, 2008).

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