Cable to Tie Satellite in DVR Adoption

Despite a three-year head start, satellite TV providers will lose their DVR edge over cable companies by 2006.
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Dallas, TX--Despite a three-year head start, satellite TV providers will lose their DVR edge over cable companies by 2006, according to Internet-Based Video Services, a new white paper from research firm Parks Associates.

Although satellite companies began offering DVRs as early as 1999, they will not be able to overcome the advantages cable companies have in offering a complete bundle of fully integrated services. Parks Associates forecasts that, as a result, over one-half of all DVRs deployed by service providers in 2006 will come from the cable MSOs.

"Cable providers will increasingly dominate the DVR market," said Parks Associates director of research, John Barrett. "Their networks have a huge advantage--they can already offer telephone services, video-on-demand, TV, and Internet access. Satellite players and telcos have to combine their capabilities to do so, which makes it much more challenging in terms of bundling, billing, marketing, and overall execution of their business strategy."

Satellite TV providers dominate this market now because cable companies were initially hesitant to deploy DVRs, according to Parks Associates. A DVR allows subscribers to record programming onto a hard disk and also pause and rewind live TV, among other features. Many cable companies did not offer their own DVR solution until 2003, but as a whole, the cable industry will be able to close the gap and soon erase satellite's lead in this market.

A copy of the white paper Internet-Based Video Services can be downloaded for free from www.parksassociates.com.

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