TiVo the Ad Model Slayer

TiVo is giving TV networks and ad agencies a bad case of Too Much Information Syndrome, and they're in "deep denial," Business Week reports. Since June 2, the DVR maker has supplied them with more details on what people watch and, more importantly, what they fast-forward through than had ever been available before.

As the magazine puts it, "TiVo's initial data reveal some trends that ad agencies and networks might prefer to bury." Perhaps the key revelation: the higher rated a show, the more likely people are to skip through commercials.

If true, that's a major challenge to the established business model for TV advertising:

"Today, media buyers purchase TV ad time based on program ratings and demographics. When 2 million people turn in to watch Friends on Thursday night at 8 p.m., advertisers assume 2 million people see their ad. Tomorrow's ad buyers might choose to bid higher for 30-second spots on programs such as 60 Minutes, which has an older audience less prone to channel surfing."