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Are Infomercials Dead?

dpotter | 05 December, 2005 14:21

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Bob Dylan’s song said, “the times they are a changing.” This certainly applies to the world of infomercials. The growth of digital video recorders (DVR), instant on-screen information guides that identify paid programming, and the FCC now considering if consumers should be able to buy cable programming on an individual basis rather than in multi-network packages are some of the factors contributing to the notion that long-form infomercials may soon be a thing of the past.

Just two decades ago, FCC deregulation and the explosion of cable caused a shortage in program content making half-hour commercial time both abundant and affordable. Concurrently, the broadening use of remote control units allowed television viewers to sit back and surf through all the available channels at any time of the day or night to watch anything that might catch their fancy. Those who clicked on to an infomercial, and stayed with it long enough to be convinced they needed to have the product right now, could simply call an 800 number and use their credit card to order the product of choice.

So what will happen to the DRTV business if infomercials, as we know them, vanish from the scene? There will be more regular program content developed to appeal to specific audiences. These programs will be paid for by short-form, one and two-minute, spots which will generate greater combined income to the networks and local stations than the discounted price paid by an advertiser purchasing the entire 30-minute segment. This will free up significantly more short-form time, particularly in the area of targeted programming.

Consumers will be able to watch TV in real time or record the shows for viewing later. Of course, there must to be some consideration given to insuring that commercials are watched rather than zapped, as DVR home distribution continues to increase. There will be lots of logistical problems to overcome such as delayed ordering which will make tracking results difficult, but the people in this business are resourceful and up to the challenge. However, with the changes facing the industry, all must be watchful that technology does not to kill the goose that laid the golden egg.


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