Satellite television providers will increasingly lose their digital video recorder (DVR) edge over cable companies by 2006, according to market research and consultancy firm, Park Associates.
The
Video-on-Demand and Personal Video Recorders: Analysis & Forecasts report reveals that satellite companies will not be able to overcome the advantages that their cable counterparts have in offering consumers a complete bundle of fully integrated services.
As a result, Park Associates has forecast that over one half of all DVRs deployed by service providers in 2006 will come from cable companies.
Commenting on the research, John Barrett, director of research for Park Associates said: “Cable providers will increasingly dominate the DVR market. Their networks have a huge advantage, they can already offer telephone services, video-on-demand, TV and internet access.”
He continued: “Satellite players and telcos have to combine their capabilities to do so, which makes it much more challenging in terms of bundling, billing, marketing, and overall execution of their business strategy.”
Satellite television providers currently dominate this market, as cable companies were initially hesitant to deploy DVRs, according to Park Associates.
The report also found that multiroom DVRs are now available and they will be the first true entertainment network in the home that is affordable to the mass market. A report released earlier this year by Park Associates forecast the number of multiroom DVRs to exceed 25 million by 2009 (see Multiroom DVRs To Exceed 25 Million By 2009).
Over the next five years DVRs are predicted to enjoy massive growth, with penetration forecast to reach over 11% of television households worldwide, according to a report from Informa Media (see TiVo Continues To Dominate US PVR Market).
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