DVRs Set To Become Essential Household Items
Digital video recorders (DVRs) are set to enjoy massive growth over the next five years, says a new report from Informa Media, with penetration expected to reach 11% of television households world-wide.
By the end of this year, just over 9 million homes are predicted to own a DVR, however this figure is expected to rocket to nearly 120 million by the end of 2010, accounting for 11% of global TV households and 33% of digital TV homes.
Informa says, ‘2005 will be the watershed year’, as many digital platforms launch their own branded services as DVRs become the next essential electronics item for the household. However, as a result of innovation from digital broadcasters, stand-alone DVRs are expected to become less and less commonplace, with the vast majority of DVR functionality incorporated into set-top boxes.
By the end of the decade, receiving DVR functionality by digital cable will represent 66% of the total number of DVR homes, up from 47% in 2003. Digital DTH homes will account for 25% of the 2010 total, with DSL bringing in 4% and DTT 5%.
North America will lead the way in terms of household penetration over the next five years, with nearly 54 million homes expected to have a DVR by 2010, followed by Asia Pacific with 32 million homes and Europe with nearly 31 million.
Penetration from one country to the next is expected to vary due to the price of the hardware and also whether a monthly subscription fee is charged. Informa said its forecasts assume that TiVo will not win its legal action against EchoStar.
Currently, TiVo is claiming that it owns the copyright to all DVR functionality and if this proves to be correct, it is unlikely that broadcast operators will promote this service because they will have to pay TiVo a licensing fee.
Informa Media: www.informa.com
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