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(Continued)     The RFS Newsletter, Dec. 3, 2005. Page 3
"The Google model is something we're reviewing," says Davina Kent, TiVo's vice president for national advertising sales. TiVo's pioneering digital video recorder, or DVR, is much beloved by consumers for its ability to easily record and pause live television shows. But it has sent Madison Avenue and broadcasters into a tizzy by allowing viewers to skip traditional commercials. Recently, TiVo has come up with a pitch for advertisers: Use the TiVo DVR itself to send new forms of interactive advertisements. Yet a big question remains: If viewers use DVRs in part to avoid advertising, will they use the devices to watch more of it?

With DVR penetration expected to rise and consumers increasingly able to watch TV programs when they choose, this conundrum is one Madison Avenue has been trying to solve. As consumers watch video through Internet-based broadband, via video-on-demand on cable and on Apple Computer Inc.'s video iPod, storing programming or advertising and searching for it could become more of a habit. While this sort of searching is in its infancy, eventually, "your ability to search video content will equal your ability to search Web content," says Marc Landsberg, president of Arc Worldwide, a Publicis marketing-services firm.

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