Audio Video News

Makers of personal video recorders (PVRs) like TiVo and ReplayTV have been fighting an uphill battle to get consumers to understand and purchase their products. This reluctance has caused some marketing executives to question whether there is much of a market for personal video services. But consumer apathy toward unknown technology shouldn't be confused with the potential for such services, according to a recently released report from market analysts TechTrends.

The report, "Digital Video Recorders: Mid-Year 2000 Review," indicates that TV viewers are eager for services and devices that offer time-shifting (including rewinding, fast-forwarding, and pausing of live TV broadcasts), personal channels, personalized video content, and other customized features based on their own preferences.

PVRs provide all this, but TiVo and ReplayTV have established a customer base of only 70,000 subscribers between them. One obstacle is the relatively high retail price of the recorders; the TiVo box costs almost $400. According to TechTrends, a larger market exists for multipurpose devices that do everything PVRs do, and more, such as receive DBS broadcasts. TiVo is reportedly at work on such a product.

The real action in the personal TV business will be in server-based operations, the analysts predict. Features that will attract subscribers include services that "combine DVR functionality with Internet access, e-commerce, video-on-demand, and interactive gaming features," according to a synopsis of the report on BusinessWire. The growth of these services will further hamper the demand for PVRs, it states. The demand for set-top boxes with PVR capabilities and enhanced features will be eight times greater in 2003 than the demand for PVRs alone, the report predicts, noting that approximately half of cable and satellite subscribers are willing to pay a higher monthly fee for enhanced services.