Tuesday, 30 March 2004
Pay TV Providers Help Drive Rapid Growth of the Digital Video Recorder --
DVR -- Market, IDC Says
 March 30, 2004--Despite slow adoption rates and marketing efforts
that never really hit home with consumers, digital video recorders (DVRs) -
devices that use an internal hard drive to record programming - are finally
reaching the masses. Spurred in large part by cable and satellite TV providers
investing heavily in DVR-enabled set-top boxes in the U.S., IDC forecasts that
worldwide unit shipments will climb to more than 28 million in 2008, a compound
annual growth rate (CAGR) of 46.9% between 2003 and 2008.
" Consumers are finally beginning to get it," said Greg Ireland, senior research analyst, Consumer Markets: Video. "For the first time the DVR vendors are getting through to people and showing them that these devices are more than just high-priced VCRs. The pay TV providers can take a lot of the credit, and reap the rewards, for finally breaking through to consumers."
In the United States, DVR adoption has become a function of the heated competition between cable and satellite television providers. Initially, satellite providers emphasized DVR offerings to combat cable televisions' investment in video-on-demand (VOD), and now cable is being forced to respond. "This strategy has done more in one year to advance the understanding and acceptance of DVRs than standalone options, such as TiVo, had done in the previous five years," Ireland added.
The DVR market in Western Europe, although not quite as aggressive, closely resembles that of the United States, relying heavily on pay TV providers to advance DVR penetration. In Japan, however, things are quite different as DVR/DVD-recorders are igniting the market. These combo devices will ship 11.3 million units worldwide in 2008, with nearly 80% of the shipments happening outside the United States. Standalone DVR shipments will decline toward the second half of the forecast period as these devices increasingly add DVD recording functionality. In fact, the DVR/DVD-recorder segment will continue to grow and account for nearly 40% of the entire worldwide DVR market in 2008.
Key Findings
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At the end of 2003, there were 3.2 million U.S. DVR households
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Despite its strong brand, which is virtually synonymous with the DVR product category, TiVo owns only 39% of the U.S. market
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Unlike in the U.S., DVR/DVD-recorder devices have ignited the Japanese market
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In the U.S. and Japan, DVR will increasingly incorporate high-definition (HD) capabilities
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Storage capacity will become more important as more DVR users wish to build larger and larger libraries of content
IDC's new study, Worldwide and U.S. DVR 2004-2008 Forecast (IDC #30954), examines the DVR market, with a focus on developments in the United States and worldwide. It includes analysis of the different types of devices and adoption trends in the major existing DVR markets: the United States, Japan, and Western Europe. The Future Outlook section discusses issues that will factor into DVR developments, including HDTV, hard disk drive size, networking, and the viability of the standalone DVR in the United States.
This study presents forecasts for DVR-enabled digital cable, digital satellite, and IPTV/video over DSL digital set-top boxes (STBs), in addition to standalone DVRs and DVR/DVD combo devices for both the United States and the overall worldwide market. A forecast of U.S. DVR households is provided, along with a breakdown of these households as of the end of 2003.
To purchase this study, call IDC Sales at 508-988-7988 or email sales@idc.com.
About IDC
IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.
IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. Additional information can be found at www.idc.com
All product and company names may be trademarks or registered trademarks of their respective holders.
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