The progress of digital technology has seen the traditional media of television change dramatically over the last ten years. Increased convergence of services and technologies is changing the shape of the communications sector and in particular industry revenues.
The decline in advertising revenues coincides with greater availability and use of television-style content online and the growth of digital video recorders (DVRs) that allow users to skip adverts, putting even greater pressure on advertising revenues. A report by OFCom found that up to 78% of DVR owners regularly used them to skip through adverts.
OFCom also found that online advertising continues to grow and Google have now announced that research undertaken by them has found that ads on its YouTube portal have a greater impact than those on television.
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