Consumers Warming to Emerging Television Advertising Services

Nearly one-half (46%) of U.S. Internet consumers aged 13 and older are comfortable with viewer tracking and targeted advertising services if offered in conjunction with ad-skipping capabilities, according to Digital Entertainment:

For Immediate Release

Contact: Jenny Barrett
Parks Associates
972 -490 -1113
Email: Jenny@parksassociates.com

Consumers Warming to Emerging Television Advertising Services
Survey finds consumers willing to trade viewing information to advertisers for the ability to fast -forward through commercials with a DVR

DALLAS, July 28, 2005 - Nearly one -half (46%) of U.S. Internet consumers aged 13 and older are comfortable with viewer tracking and targeted advertising services if offered in conjunction with ad -skipping capabilities, according to Digital Entertainment: Changing Consumer Habits, a new study from Parks Associates.

This study, based on a survey of more than 2,000 consumers in U.S. households with Internet access, finds that consumers respond favorably to prospective television advertising services that track their viewing habits and produce targeted TV or e -mail ads if they also have the ability to fast -forward or skip regular TV commercials.

"This finding bodes well for TiVo and other PVR/DVR developers, who are hoping to balance viewers' desire to have fewer commercials with the needs of broadcasters and advertisers to better measure their audience and drive more value from advertising," said Kurt Scherf, vice president and principal analyst at Parks Associates. "The PVR/DVR platform has great potential to reshape how consumers interact with marketing messages and to improve the connections between advertisers and potential buyers."

Scherf notes that the advertising lessons now emerging from the PVR/DVR space are also applicable to service providers as they seek to deploy more interactive IP video services, including offerings from both telcos and cable MSOs.

"Advertising revenues will be important for next -generation video providers in solidifying their services," Scherf said. "In addition to building more robust ARPU and increasing customer satisfaction via on -demand applications, targeted advertising applications that better measure viewer preferences and then drive targeted purchases should be part and parcel of business model development with IP video services."

Parks Associates' Digital Entertainment: Changing Consumer Habits is an Internet -based survey instrument of 2,084 U.S. consumers in households with Internet access, including 270 teenagers between the ages of 13 -17. This study analyzes consumer behavior for digital entertainment in the home, including product purchases, service subscriptions, use of home computers and the Internet for multimedia purposes, and interest in new Internet - and carrier -based services.

For additional information on Digital Entertainment: Changing Consumer Habits, visit http://www.parksassociates.com or contact 972 -490 -1113 or sales@parksassociates.com.

About Parks Associates: Parks Associates is a market research and consulting firm focused on all product and service segments that are "digital" or provide connectivity within the home. The company"s expertise includes home networks, digital entertainment, consumer electronics, broadband and Internet services, and home systems.

Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start -ups through market reports, multiclient studies, consumer research, workshops, and custom -tailored client solutions. Parks Associates also hosts Fall Focus and co -hosts CONNECTIONS™ (in partnership with the Consumer Electronics Association) each year. www.parksassociates.com

Featured Product

PureLink - HCE III TX/RX: 4K HDR over HDBaseT Extension System w/ Control and Bi-Directional PoE

PureLink - HCE III TX/RX: 4K HDR over HDBaseT Extension System w/ Control and Bi-Directional PoE

The HCE III Tx/Rx HDBaseT™ extension system offers full HDMI 2.0 compliance supporting HDR (High Dynamic Range) and 4K@60Hz with 4:4:4 chroma sampling. Featuring PureLink's proprietary Prcis codec, a light compression technology, the HCE III can transport Ultra HD/4K, multi-channel audio, and High Dynamic Range (10 bits support) content over a single CATx cable. The HCE III provides HDMI extension up to 130 feet (40 meters) at Ultra HD/4K and up to 230 ft. (70 meters) at 1080p over category cable with embedded multi-channel audio, CEC pass-through, bi-directional RS-232 and IR control, and PoE - all with zero loss and zero noise. The HCE III Tx/Rx also supports Dolby TrueHD, Dolby Digital Plus and DTS-HD Master Audio plus LCPM (up to 192 kHz). Additionally, the low profile "slim box" enclosure design make the HCE III ideal for limited space installation environments, such as behind flat panel displays and video walls.