Consumers Reject Digital Video Recorders, But They Will Embrace Personal TV Services; Sluggish demand for DVRs masks the positive outlook for personal television.Business/Technology Editors BOSTON--(BUSINESS WIRE)--Aug. 8, 2000 Personal TV services will become an important component of interactive television, despite consumer apathy toward the DVR (1) (Digital Video Recorder) A device that records video onto a hard disk from one or more ceiling mounted video cameras. Part of a security system, the DVR typically supports 4, 8 or 16 separate camera channels. set-top boxes that enable personal TV services. In a new report, entitled "Digital Video Recorders: Mid-Year 2000 Review," TechTrends predicts that the market potential of stand-alone DVR devices will be limited by the availability of competitively priced multipurpose mul·ti·pur·pose adj. Designed or used for several purposes: a multipurpose room; multipurpose software. multipurpose Adjective set-top boxes and by personal TV services offered by cable and satellite operators. Personal TV services offer time-shifting (rewinding, fast-forwarding and pausing of live TV broadcasts), personal channels, personalized video content and other customized features that are based on viewer preferences. TiVo (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :TIVO) and ReplayTV have provided personal TV services through single-purpose set-top boxes known as stand-alone DVRs. With fewer than 70,000 subscribers between them, these two companies have yet to establish a large customer base, largely because of the high retail prices of their DVR set-top boxes. These modest results suggest that the installed base of DVRs will not reach critical mass. Personal TV services, however, will enjoy widespread acceptance, but not through single-purpose hardware devices. Key report findings and forecasts that support these statements include: - More than 44% of cable subscribers and 50% of satellite subscribers are willing to pay a separate monthly fee for personal TV services. - Most consumers will pay extra for personal TV services, but they will not buy single-purpose DVR set-top boxes. If consumers are going to pay several hundred dollars for a set-top box, they will want a device that offers several features. - Network operators will offer server-based personal TV services as a standard feature of interactive TV services, possibly using them as a loss leader to promote higher-end ITV (1) See interactive TV. (2) (iTV) The code name for Apple's video media hub (see Apple TV). services such as video-on-demand. - By 2003, U.S. shipments of DVR-enabled digital set-top boxes will grow to nearly 8 times those of stand-alone DVR set-top boxes. The report also explains how increased developments of server-side personal TV applications by Scientific-Atlanta (NYSE NYSE See: New York Stock Exchange :SFA See sales force automation. SFA - Sales Force Automation ), Microsoft (NASDAQ:MSFT MSFT Microsoft (stock symbol) MSFT Movimento Sociale Fiamma Tricolore (Italy) MSFT Multi-Stage Fitness Test MSFT Master of Science in Family Therapy MSFT Macalester Students for Fair Trade ), NDS See eDirectory. NDS - Netware Directory Services (NASDAQ:NNDS NNDS Norsk Nettverk for Down Syndrom (Norway) ) and Liberate Technologies (NASDAQ:LBRT LBRT Little Black Rubber Thingy LBRT Low Buck Racing Team ) will radically change the DVR market landscape, as more network operators start to offer personal TV services to their subscribers. TechTrends believes that the deployment of server-based personal TV services will drive consumer adoption of multipurpose digital set-top boxes, which combine DVR functionality with Internet access See how to access the Internet. , e-commerce, video-on-demand and interactive gaming features. As cable and satellite providers begin to offer personal TV services, consumers will be less likely to buy stand-alone DVRs, especially when multipurpose set-top boxes become available at competitive prices. "Digital Video Recorders: Mid-Year 2000 Review" analyzes key market developments that have occurred from January through July 2000, and it provides new forecasts on four DVR-enabled product categories: stand-alone DVRs, DVR-enabled digital set-top boxes, DVR-enabled TV sets and DVR-enabled PC cards. The report examines the strategic initiatives of more than 25 key market participants, including TiVo, ReplayTV, Metabyte and WebTV. In addition, the report discusses consumer price sensitivity for personal TV, segmented by cable and satellite subscribers. "Digital Video Recorders: Mid-Year 2000 Review" is available for $395. It is also FREE with the purchase of TechTrends' study, "The Digital Television Revolution: Success Factors for the Emerging Digital Video Recorder Market." About TechTrends, Inc. TechTrends, Inc. is a global provider of market intelligence and strategic business reports, focusing on the convergence of the Internet and the consumer electronics industry. The company's research and consulting activities address three key themes - Interactive Television, The Mobile Internet and The Digital Home. Within these areas, TechTrends evaluates critical technology, market and consumer issues for personal TV, video-on-demand, interactive gaming, TV-based e-commerce, digital set-top boxes, handheld PCs, Internet appliances, Web phones and home networking. For more information, please visit www.techtrends.net or call 617-621-1552. |
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