Marketers all wondered what would happen to traditional TV ads when DVRs finally caught on. The big question was, "Won't everyone fast-forward through the commercials?" This was of course the same question marketers were asking when the first VHS recorders hit the market in the 80's.
In 2003, ReplayTV (a manufacturer of DVRs like TiVo) announced they are stripping the ad skipping feature out of their new DVR models because they are scared of a copyright law controversy. [ReplayTV strips ad skipping in new DVR models]
We asked L. Ray Patterson, Professor of Professional Responsibility at the University of Georgia school of law, to weigh in.
The competitor obeys the copyright; the consumer uses the work. The copyright owner, by reason of the Copyright Act and the copyright clause, has not only no right to interfere, but a duty not to interfere with the consumer's use of a publicly disseminated work.
According to Rep. Lamar Smith (R-Texas), chairman of the House subcommittee overseeing copyright law:
Future FCC regulations involving digital TV should not "have an adverse affect on how consumers may legitimately use lawfully acquired entertainment products." Smith also opposes mandatory copy-protection in pcs, while calling for greater disciplinary action against peer-to-peer pirates at universities. [Legislator warns FCC on digital TV]
Ultimately, this is another concern for the unsophisticated marketer. "The law is on the side of free will. Who knew?" Remarks Justin Downey, owner of marketing firm, JDM, "TV is long overdue for some real innovation. The key to making DVRs and Ad-skipping a non-issue is relevant, targeted marketing communications. We can no longer target an entire demographic and not expect them to turn off or fast-forward."