Business

AD-HUNGRY NETS DEVELOP ON-DEMAND RIVALS TO TIVO

As more viewers embrace TiVo and other digital video recorders, the big TV networks are stepping up efforts to counter the spread of the ad-skipping devices.

Both ABC and NBC have teamed with cable operator Cox on a video-on-demand service that allows viewers to watch shows such as “Desperate Housewives” and “30 Rock” any time they choose. The rub: they can’t fast forward through commercials.

After testing the offering, called “MyPrimetime,” in Orange County, Calif., Cox has expanded the service into Connecticut and Rhode Island and plans to push into four more states this summer.

The cable operator also just signed a deal to add shows from Fox later this year. (Fox, like The Post, is owned by News Corp.)

“This is something the entire industry needs to get behind,” Mike Shaw, ABC’s ad sales chief, told advertisers during the network’s annual “upfront” presentation.

Network execs are seeking ad-supported alternatives to digital video recorders, or DVRs, which they view as a serious threat to advertising.

Leading the charge is ABC, which was the first network to announce a trial with Cox and is in talks with other cable operators about similar services.

A Cox customer survey at the beginning of the year found that 20 percent of MyPrimetime homes reported using the service as a substitute for their DVRs, while one-quarter said they would not have watched the shows at all had they not been available on demand.

Advertisers like the idea of disabling the fast-forward button and have dabbled with on-demand services.

However, those products have been rolled out piecemeal and the audience reach is nowhere near that of broadcast TV.

“Advertisers haven’t figured out how to do anything wonderful with VOD,” said Janice Finkel-Greene, a top researcher at media-buying firm Initiative, part of ad giant Interpublic. “It’s so small scale. You can’t do it on a large level and do it easily.”

The cable industry is hoping to change that with targeted TV ad opportunities through initiatives such as “Project Canoe,” which may ultimately drive greater experimentation with ad-supported, on-demand initiatives from other cable companies and networks.

While cable operators offer DVRs as part of their subscription package, they are also eager to capture some of the advertising that currently flows to other on-demand options, such as the broadcast networks’ own Web sites and hubs like hulu.com.

holly.sanders@nypost.com