Comcast and TiVo Plan Ad System for Recorded Shows

Comcast Corp. is working with TiVo Inc. on an advertising system that will insert new, updated commercials into already recorded programs.

Comcast Chief Executive Brian Roberts told cable executives meeting in San Francisco late Monday that under such a system, programs that were recorded weeks ago on a TiVo digital video recorder would have their old commercials replaced with new ones.

The system could also take into account viewer patterns to make ads more targeted and relevant, Roberts said.

Philadelphia-based Comcast, the country’s largest cable company, announced last month that it would start offering TiVo’s DVRs by 2006.

The new technology could help make DVRs more palatable to TV networks, which are concerned about losing advertising opportunities because DVRs allow viewers to fast-forward past commercials in recorded shows.

“In the long term, advertising is going to be a big winner,” Roberts said. “They’re going to get more bang for the buck. But in the medium term there’s going to be this disruption.”

Larry Page, co-founder of Google Inc., who was also at the trade show, warned that the change would be difficult. Ads on Google from the beginning have aimed to be relevant, he said.

Jonathan Miller, CEO of Time Warner Inc.’s America Online, agreed. “Advertising is going from being an involuntary service to being a voluntary service.... That puts a high bar on relevance and other things,” he said.

Also Tuesday, Alviso, Calif.-based TiVo and El Segundo-based satellite broadcaster DirecTV Group Inc. said they had signed a deal to let both companies sell advertising for TiVo recorders. The DVRs recently began showing static images, such as company logos, when fast-forwarding some shows.

TiVo shares fell 38 cents, or 6.7%, to $5.33 on Nasdaq.