aviationwiz said:
Do they get more revenue from people watching it "live" instead of recorded on a VCR or DVR? Can they tell if it's being recorded or watched "live"?
Yes, and no.
Nielsen (the ratings people) originally used a diary, wherein each viewing family would record their viewing habits and then forward the diary to Nielsen. But they found that people would lie about what shows they were watching (for example, they'd write down that they were watching
Masterpiece Theatre on PBS when they were really watching
Hee-Haw on CBS), so...
... they switched to an electronic box that would keep track of what shows the TV was being used to watch... that information would then be relayed to Nielsen in real-time, so they could get instant ratings information. The problem with THAT was that people would turn their TV on to a specific channel and then leave the room... so they weren't actually watching the shows, which is what the advertisers want. So then...
... they switched to a NEW box that not only keeps track of the show that's being watched, but ALSO has an infrared sensor aimed out in front of the TV, so the box can see how many people are actually watching. That works pretty well, unless people are TiVoing/DVRing shows and watching them later on; in that case, the ratings don't reflect that the show is actually being watched.
Looks like Nielsen needs to invent a new box that can account for DVRing... but even if they did, the fact is that people use DVRs to skip past commercials, so again the problem is that the ratings can't really be used to determine ad rates.
It's ironic that better technology that makes it easier/more fun for us to watch our favorite TV shows actually can imperil said TV shows.