DVRs: “A Can’t Live Without Device”
A new national study suggests that the digital video recorder is becoming a “can’t live without” device for a growing number of U.S. consumers.
A new national study suggests that the digital video recorder is becoming a “can’t live without” device for a growing number of U.S. consumers.
The study conducted by The Carmel Group, in early 2006, projects that subscribers of digital video recording services will increase to 20 million by 2008. Satellite, cable and standalone service providers, such as TiVo are poised to benefit from this trend.
Titled “DVRs: Time In A Magical Box,” the study is scheduled for release on Monday, February 20, 2006, and combines projections of future DVR deployment in the U.S., a survey consisting of 1,800 consumers, and in-depth analysis of the DVR landscape and the device’s impact on advertising industry.
The findings indicate that DVRs are poised to leap into a fifth of all U. S. households during the next four years. Moreover, since 75% of DVR users only possess one device, service providers are likely to find growth opportunities through the deployment of additional devices to these households. Since 1999, total revenues generated by the sale of DVR related hardware, software, and services, are estimated to have topped $1.1 billion.
The study points to the fact that satellite providers currently account for the largest percentage of DVRs deployed, closely followed by cable, while a small percentage of consumers are using standalone devices.
According to The Carmel Group’s consumer survey, top DVR service providers are DISH Network, Comcast, DirecTV and Time Warner Cable.
Moreover, The Carmel Group believes that, as a result of consolidation and market competition, by 2008, the main four DVR manufacturers will be Scientific Atlanta, TiVo, Motorola and EchoStar’s DISH Network.
Furthermore, the study indicates that key opportunities will arise from the growth of DVRs for service providers. These opportunities rest in the traditional core market, in attracting more female consumers, and the better targeting of growing minority markets, such as the Hispanic and Asian populations. The study also points out that DVR capabilities are challenging the traditional 30-second advertising model, but also creating innovation and new advertising techniques such as products placement and targeted advertising.
The Carmel Group also found that DVR users have a thirst for multiple services, such as high-speed Internet and HDTV among others. The study suggests that DVR users could well become early adopters of emerging technology, such as online gaming, VOIP and satellite radio, making them a prime market for bundled services.
Overall, the combination of DVRs’ capabilities and users’ infatuation with the service provided are making DVRs a “can’t live without device,” positioned for tremendous growth in the U.S. multichannel market.
Jimmy Schaeffler is chief service officer and senior analyst at The Carmel Group, a publisher and consultancy based in Carmel-by-the-Sea, CA. The company covers telco, satellite, cable and wireless services, as well as computers and the media. Schaeffler can be reached at jimmy@carmelgroup.com; or, (831) 643 2222.