DVR Services Boom Predicted

Worldwide subscribers to Digital Video Recording (DVR) services will rise by a factor of nearly seven between 2005 and 2010, spurring major changes in video-service and content-provider businesses, as well as in the consumer-electronics industry, iSuppli predicts.

The number of global subscribers to DVR services will reach 83.4 million in 2010, rising at a compound annual growth rate (CAGR) of 45.3%, from 12.9 million in 2005, according to iSuppli.

“DVR is driving the transition of consumer-video consumption from broadcast - or linear programming - to non-linear video consumption and personalized viewing,” said Mark Kirstein, vice president, multimedia content and services, iSuppli.

“As a result, DVR is a pivotal disruptive technology as traditional TV programming adapts to an array of video-on-demand (VoD), Internet-Protocol television (IPTV) and broadband-distribution technologies. Furthermore, DVRs represent most consumers' first exposure to interactive television,” Kirstein added.

The impact of DVR goes well beyond just driving equipment sales and service subscriptions, Kirstein observed.

Service providers are leveraging DVR to reduce churn and to support Internet VoD services. Content providers are transitioning their advertising strategies to leverage interactivity and to counter the skipping of commercials that DVR enables.

Meanwhile, equipment manufacturers are offering DVRs for multi-room applications and for media home networks. Portable DVRs also are emerging, aligned with personal media players (PMPs), according to the research firm.

While consumer adoption of DVRs has been a North American trend, initially, deployments are accelerating in Europe, where both satellite and new IPTV offerings are emerging. In Japan, DVR has proven popular in DVD players/recorders. Elsewhere in Asia, networked DVRs are appearing.

DVRs already represent a vibrant and growing market for both equipment and services. Total DVR equipment shipments will rise to 84 million units by 2010, while service revenue will reach US$2 billion, iSuppli projects.

Story source: digitimes.com.