TOPIC: Digital Video Recorders (DVRs)
DEFINITION: Time shifted recording and viewing using hard drive and custom software for user interface; can also involve network-based store/retrieve technology.
IMPORTANCE: Provides added value for consumer by allowing for user defined content to be stored for on-demand access. It also enables subscribers of Digital Cable packages to get more use from their service. DVRs are a significant competitive weapon. Satellite operators have long used aggressive DVR strategies to blunt Cable's offering of VOD.
FUTURE: There has been slow adoption, but the technology is embraced by those who use it. Cable companies are now pushing DVRs as another important product in their portfolio and nearly every operator has plans for 2004. DVR penetration is expected to increase dramatically once all Cable operators offer the service. The chips and hard drives are also increasing in capacity to such a degree that DVR capability is becoming more widespread. In the long term, DVR capability will become a commodity. Also, DVRs will change the way TV is viewed as many predict a majority of TV viewers will watch some form of recorded content instead of linear programming.

Contents:

DVR Product Overview:
-
What is it and why is it hot

- How it's delivered

-
Features and benefits

DVR Big Picture:
- Overview
- DVR meets multichannel TV
- Cable companies were taking wait-and-see approach

- Competition from satellites

- Demand for DVRs growing

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Impact of DVRs on the advertising model
- The ad-skip button debate

Cable TV & DVRs:
- Cable's DVR strategies
- Roll out considerations
- Why some have stressed VOD over DVR

- Business case

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Cable DVR model: pricing and packaging
- Issues with Cable-based DVR services

- TiVo and Replay vs Cable DVRs
- Outlook


DVR Deployments:
- Overview
- DVR set-top boxes

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Motorola

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Scientific Atlanta

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Digeo

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MSO DVR deployments
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Comcast
- Time Warner

- Cox

- Charter

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Cablevision

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Insight
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Bright House Networks

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Others

(Last updated May 5, 2004)

Satellite DVRs:
- Overview
- Satellite's first forays into DVR

- What's happening today

- Why satellites are bullish on DVRs

- Competitive impact

Network DVR:
- Overview
- Issues for network DVR model

- Competitive impact

- Network DVR vs Set-top box DVR model

- Network DVR outlook

Mystro TV:
- Mystro TV Overview
- Technology

- Mystro issues

TiVo & Replay:
- Overview
- Home DVR market
- Reasons DVRs are not selling
- TiVo vs Replay product offerings
- DVRs with DVD recorders

 


DVR Product Overview: ..
What is it and why is it hot - A Digital Video Recorder (DVR), is very similar to a VCR except that it records to a hard drive instead of videotape. The functionality is very similar - you can pause, fast forward, rewind and so forth. However, DVR's take it much further by allowing consumers record and manipulate any type of programming they have access to, whether live or scheduled. Essentially, the way it works is that the programming from the Cable TV or satellite source is routed into the DVR unit where the hard drive and built-in software provides the user with functionality and the ability to set preferences. A monthly subscription to scheduling information is required so the unit can allow the user to interact with any programming via it's software. The main selling premise is DVRs provide the consumer with a considerable amount control and convenience when it comes to viewing TV. As of Q2 2004, about 3.5M people in the US have DVRs in their homes.

How it's delivered - Digital Video Recording can be delivered in three ways; over a network using servers and an access device, from a stand-alone unit such as a TiVo or hard drive enabled set-top box, or by PC, where content is recorded down to the computer's hard drive and then shipped to the monitor or over to regular TV. In the case of the network enabled DVR's, client/server architecture is utilized so that programming stored on network servers can be retrieved from a Cable TV subscriber's set-top box. Conversely, stand alone DVR's, store the content locally. Stand alone DVR's come in a few different flavors. First, there are the home electronics components, such as Tivo, Replay or any of a number of devices that have integrated hard drives for TV viewing, then, there are the set-top boxes where DVRs are integrated with Cable TV and satellite receivers. Stand alone DVR's are offered by a number of electronic makers and are purchased at the retail level by the consumer, with Cable TV set-top boxes being excluded of course. Home computers that have DVR recording ability are also available, though for this web page, I will be focusing mostly on network and stand alone delivery. Generally, with DVR services, a monthly subscription is required in order to access the programming information, as is the case with TiVo and Replay (more further below). Cable TV and Satellite operators may or may not charge a fee, however.

Features and benefits - DVR services provide several compelling features. Users can pause or rewind a live program or play a program stored on it's hard drive while recording another. They can play the beginning of a show that is still in the process of being recorded. Users can also manipulate TV schedule information and record programming by actor, genre, time slot or the like. Similarly, DVR software from companies like TiVo allow a user to program in their viewing preferences to enable the DVR to "learn" the user's viewing tastes. The DVR will then record programming it 'thinks" the user will like. Like VCR's, DVR's can record at different quality levels and in many cases fast forward through TV ads, albeit in a much easier fashion. The end result is an on-demand viewing experience which gives the viewer much greater control over the types of programming they prefer to see. Though DVR's have yet to cross the chasm into mass acceptance, the future is very promising, and consumers who use the technology are extremely loyal. Furthermore, sales have only continued to increase over time.

 

DVR Big Picture:..
Overview
- Having made its debut at the International Consumer Electronics Show in 1999, TiVo, which launched as a company in 1997, introduced the digital video recorder. It was soon to be hailed by pundits as a technology that could revolutionize the broadcasting industry. The DVR industry, which has mainly consists of TiVo and Replay, came into being at the high point of the Internet boom. Early DVRs cost about $500 apiece and were mostly purchased by a tiny group of high-tech hobbyists. Easy financing meant both DVR start-up companies could afford to subsidize their consumer electronics (CE) manufacturing partners such as Sony, Philips, Panasonic and Thomson. They put in around $200 per box for every device sold in order to gain market shar