The number of cable DVR households in Europe is expected to grow from 2.2 million by the end of this year to 24.3 million by 2009, as new technology from cable and satellite operators gains market share from stand-alone products.
According to JupiterResearch, video-on-demand households will also grow during this period at the expense of existing products, from about 18 million to 40 million but these don’t tell the whole story says analyst, Todd Chanko.
Currently VOD usage, either free or subscription is low, with around only one-third of digital cable subscribers have used VOD programming in the last 12 months.
On the other hand, DVR owners are almost twice as likely to have paid for a la carte VOD programmes and to subscribe to a VOD programme service.
Todd Chanko said: “The small but growing universe of DVR subscribers already understands the power of controlling one’s viewing schedule and is conversant with the advanced functionality that digital cable offers. Their appetite for on-demand television so whetted, they are, in fact, prime candidates to explore that parallel world of VOD.
He added: “As a result, operators should look at these platforms not as potential cannibals but rather as symbiotic offerings that can add to subscribers’ enjoyment of the digital platform as well as the operator’s bottom line.”
During a recent Merrill Lynch conference, DVRs were a hot topic as the group predicted that they pose a significant long term threat to television and the future of advertising (see DVRs Are A Hot Topic During Merrill Lynch Media Conference).
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