DBS and Cable Will Drive Digital Video Recorders, Says Yankee Group Report
BOSTON, Jan. 3 /PRNewswire/ -- For the second year in a row, the concept of "Personalized TV" will be among the hottest issues at this week's Consumer Electronics Show.
But while the consumer electronics industry is hoping to sell millions of stand-alone digital video recorders (DVRs) marketed by companies like TiVo Inc., Replay Networks, and Microsoft, a new Report from the Yankee Group predicts that the DVR will quickly evolve from a separate product into a feature, included with multichannel TV services from DBS and cable providers. The Report, "Digital Video Recorders: TV Gets Personal," forecasts that sales of separate DVRs will reach 500,000 units this year, compared to 850,000 units for recorders that are built into DBS receivers. In addition, another 110,000 consumers will use DVR-like services provided by cable operators. By the end of 2003, stand-alone recorders will make up only 23% of the total U.S. installed base of 11.6 million units, with bundled DBS units and cable-based services accounting for 45% and 32%, respectively.
DBS receivers that incorporate a PC hard drive for recording video have already been introduced by EchoStar through a partnership with Microsoft's WebTV, while similar models marketed by DIRECTV and TiVo will be available later this year.
DBS and Cable Will Drive Digital Video Recorders
"DBS will be a key driver for adoption of DVRs over the next two to three years," notes James Penhune, an analyst with the Yankee Group's Media & Entertainment Strategies practice. "Not only will an increasing number of new DBS subscribers opt for receivers that include some type of DVR, but both DIRECTV and EchoStar will be eager to upgrade their existing customers to more advanced equipment."
As sales of DVR-equipped satellite receivers grow, leading cable operators are expected to respond by deploying full-fledged Interactive TV (ITV) services. These services will not only incorporate the enhanced control and personalization functions available from the DVR, but other options ranging from Video-on-Demand to high-speed TV-based Web access and electronic commerce. And instead of requiring consumers to purchase separate hardware, ITV services will be deployed over digital cable set-top boxes.
"Competition from DBS has spurred the cable industry to make the infrastructure upgrades needed to add the channels and choices viewers are demanding," Penhune says. "As DBS providers begin to stress the personalization and recording features delivered by DVRs, cable operators will respond by rolling out more robust interactive services."
The DVR's evolution will also be driven by the preferences of consumers. The Report cites data gathered in a recent Yankee Group survey indicating that 30% of consumers would be more interested in using DVR features provided by a DBS or cable operator. And among the 15% of all consumers who expressed a specific interest in owning a DVR, 55% said they would be more interested in using a cable or DBS-based service.
About the Yankee Group -- www.yankeegroup.com
The Yankee Group, a subsidiary of Primark Corporation, is an internationally recognized leader in technology research and strategic consulting, whose broad-reaching analysis encompasses all areas essential to e-business success: the Internet, electronic commerce, communications, wireless/mobile, computing, and enterprise applications. The Yankee Group specializes in assisting companies with their e-business, enterprise networking, and Internet technology and electronic market initiatives while maintaining synergy with their overall business strategies. The Yankee Group continues to distinguish itself by providing personalized one-to-one analysis and planning assistance to its customers.
Primark Corporation (www.primark.com), headquartered in Waltham, Massachusetts, is a $450 million global information services company that collects, integrates, and delivers financial, economic and market research information. Primark serves financial, corporate, and government decision- makers in 61 countries through 86 offices in 24 countries.
SOURCE The Yankee Group
/CONTACT: Kim Vranas, Marketing Communications and Media Relations
Manager of The Yankee Group, 617-880-0214, kvranas@yankeegroup.com/
NOTE: For more information, to schedule an interview, or to obtain a full
copy of the Report, please contact Jim Penhune at jpenhune@yankeegroup.com or
617/880-0260.
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