DVR Services to Grow 40%

Saturday, March 25, 2006

DVR services have being predicted to see a significant boom over the next 5 years with the prospect of DVRs becoming the dominant technology increasingly likely.

Worldwide subscription to DVR services are predicted to rise by a factor of seven between 2005 and 2010 (iSuppli Corp). An annual compound percentage growth of subscribers has been marked at 45 percent with the number of subscribers to DVR services set to reach 83.4 million by 2010 compared to 12.9 million in 2005. In 2004 alone subscribers to cable DVR services doubled.

This growth in subscriptions to DVR services is causing concern among many content producers as DVR allows the potential threat of ad skipping to become more widespread threatening potential advertising revenue. Content producers are now exploring methods to increase interactivity while working on ways of integrating long form advertising.

Long form advertising is where consumers actually search out the advertising information such as when they search in google, or read product related magazine articles. With traditional television advertising already seeing a decline focus on this type of advertising is set to increase as consumers avoid adverts and have the ability to have more focused and personalized viewing habits.

DVR services expand far beyond the typical TiVo type recording box but include making use of the up and coming internet television medium which will allow even more personalized video on demand DVR services. Additionally increased integration of DVR services into peoples lives is already growing with new technologies such as DVRs for home media networks, portable DVRs, personal media players and the ability to control your home DVR from your cell phone.