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| Analysis of the Technology Trends in the DVR Market
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Need for End-user Education is Pertinent to Overcome Consumer
Inertia
Consumer awareness is the sole key to mass adoption of the DVR.
Several consumers consider shifting to a digital product or a digital
environment as prohibited, ignorant of what technical knowledge may be required.
The DVR has grown to be a popular product with aggressive marketing strategies
by service providers as well as DVR manufacturers. Yet its use is limited to six
percent of television households. The shift from analog to digital technologies
has been rapid for the average consumer. From having a single television and a
remote to wade through the channels, to having a program guide with a set-top
box and now being able to record favorite content to view later and even
carrying that content in another device- all of these serve the consumer’s dream
purposes. However an average consumer requires time to adapt to these swift
changes in technology and the methods of usage. Increased efforts at
familiarizing consumers with use of the product, is the only way to overcome
this challenge.
Consumer DVRs are Attractive Digital Lifestyle
Products
The DVR is fast turning into a home entertainment server. Not only
does it serve the purpose of storing video content, but it can transform into a
media center and also access other digital content, such as digital photos,
digital music, as well as home videos. It is increasingly stylized to boost a
complete home-entertainment experience.
Further, the utility of the DVR is
extended from time-shifting to place-shifting. Few DVRs in the market presently
enable one to transfer recorded content on portable devices or burn DVDs to
carry with them. New products like Orb by Orb Networks and Slingbox by Sling
Media complement the DVR's utility by streaming live TV and DVR content via
internet to remotely connected devices like a notebook or a mobile phone. The
multiple choices of watching television whenever and wherever, makes DVR an
attractive product to increasing number of consumers, and this will be a
significant driver in shaping future technology and market trends.
DVR
will be Mass-deployed with Set-top Boxes
The DVR, bundled with the cable and
dish set-top boxes, will spread at an accelerated rate. The DVR has an appeal
irrespective of income levels and educational backgrounds. As mass awareness
about the product continues, it will be adopted as an inherent TV viewing habit
with time. Access to these DVRs at a low monthly subscription will further
increase penetration.
Benefits of this Service
Consumer DVRs are
Attractive Digital Lifestyle Products
The DVR is fast turning into a home
entertainment server. Not only does it serve the purpose of storing video
content, but it can transform into a media center and also access other digital
content, such as digital photos, digital music, as well as home videos. It is
increasingly stylized to boost a complete a home entertainment
experience.
Further the utility of the DVR is extended from time-shifting to
place-shifting. Few DVRs in the market presently, enable one to transfer
recorded content on portable devices or burn DVDs and carry with them. New
products like Orb by Orb Networks and Slingbox by Sling Media complement the
DVR's utility by streaming live TV and DVR content via internet to remotely
connected devices like a notebook or a mobile phone. The multiple choices of
watching television whenever and wherever, makes DVR an attractive product to
increasing number of consumers, and this will be a significant driver in shaping
future technology and market trends.
Competition Between Cable and
Satellite Providers Drives Increased Deployment of the DVRs
Distribution of
the DVR via service providers serves as an effective conduit to reach a large
number of consumers. The DVR market has grown significantly since 2000 due to
incorporating the DVR as a component of the digital set-top box. In an attempt
to reduce churn and increase subscriber base, cable, satellite and telcom
providers are looking for means to attract consumers and keep them happy. They
offer DVR with several options of storage and technical upgrade packages and
attractive pricing options. This competition will provide impetus to the growth
of the NDVR market. NDVR is a more feasible way of offering low priced DVR
options to a large number of subscribers.
Increase in High Definition (HD)
Programming will Increase Demand for the DVR
Increased adoption of HD
programming is a significant driver of the DVR market. Nearly 35 percent of DVRs
installed in 2004 had HD recording capabilities. The HD market is expected to
grow significantly with introduction of more HD channels and less expensive HD
TVs hitting the market. This will drive the demand for HD DVR, with consumers
wanting to record HD content.
Consumer DVRs with Increased Features can
Complement other Sectors, Completing the Quadruple Service Strategy of Every
Service Provider
Place-shifting or the ability to watch television or the
stored content in the DVR from a remote location is an extended demand of the
time-shifting device. Also, in response to aggressive demand for video services
on mobile phones, there is consistent effort to enhance technologies by both
handset vendors as well as service providers. At present, service providers have
limited content solutions including a few news and sports channels and other
short duration content options. Streaming DVR could fill the gap, and help
subscribers view content existing on their recorders and even access live
TV.
Market Sectors
Expert Frost & Sullivan analysts thoroughly
examine the following market sectors in this research:
- Digital
Media
- Digital Streaming
- Digital Encoding
- Residential
Video Services
- Mobile Video Services
Technologies
The
following technologies are covered in this research:
- Stand-alone
Digital Video Recorder (DVR): A consumer stand-alone DVR can be defined as a
device used to record and store television content in digital format. It encodes
the video data in Mpeg-1 or Mpeg-2 format and stores the data in the hard drive.
Initially launched as a consumer appliance that can enable time-shifting that is
allowing one to watch television at one's convenience, it is now a core
component of digital set-top boxes offered by MSOs and DBS providers.
-
Network Digital Video Recorders: Also known as Network Personal Video Recorders
(NPVRs), these are mainly software solutions that sit on top of the server and
storage solution at the head-end in the IPTV market. Content is usually recorded
on the server as it comes in and can be uni-cast to individual users on demand
requiring only a single copy of the content on the server. Through this,
end-users need only have a basic, under 100 dollar set-top-box, and receive fast
forward, rewind, record and playback functionality for both live and dated
content, eliminating the need for more expensive client based PVRs currently
prevalent in the cable space.
- Space-shifting Device: A space-shifting
device is a streaming device that can capture video and/or audio signals and
reencode those signals into a different, usually lower bit rate format.
- It
can also be software that can then either in real time, or at a later time,
stream the video, and/or audio signals across a public or private network to
another device enabling users to shift the place in which they consume media
they own or license. It can stream DVR content and even live TV via internet to
portable devices such as laptops, PDAs and mobile phones.
What's
Included
- Total North American Consumer DVR & Space-shifting Devices
Market: market size, forecast of total market, list of drivers and restraints,
recommendations
- North American Stand-alone DVR Market: total installations,
total revenues, subscriber base analysis according to consumer video services,
market size of high-definition-DVR installations, vendor shares, market
forecasts
- North American Networked DVR Market: market size, vendor shares,
market forecast
- North American Space-shifting Devices Market: product
analysis, vendor analysis, market drivers and restraints
- Analysis of
the Technology Trends in the DVR Market
- Strategic Considerations for
Equipment Vendors and Service Providers
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