Time shifting is, more and more, a popular way for people to view television and it’s cutting into network television’s bottom line. If the networks continue to be paid only on the basis of live viewing, lost revenue could be as much as $600 million next year compared with an estimated $300 million this year.

Nielsen media research has found that in homes with digital video recorders, 40% of broadcast viewing occurs using those time-shifting devices. Broadcast networks figure that roughly half of those watching shows in playback are seeing commercials, and the networks are not compensated for those viewers.

“Forty percent of viewers are time shifting and viewing out of the live bucket. That is so critical,” said Alan Wurtzel, NBC Universal’s president-research and media development. “What percent watched it within an hour? We’ve got to get some legitimate credit for that.”

Networks are eager to shift away from program ratings to a new currency, one based on advertising ratings.

via Advertising Age