News

LRG Predicts More Sober DVR Penetration

7/22/2002 8:07 AM Eastern

Leichtman Research Group Inc. is weighing in with a decidedly more cautious
projection of digital-video-recorder penetration.

At the Cable & Telecommunications Association for Marketing's CTAM Summit
last week, various companies projected between 30 million and 45 million DVRs in
five years. LRG thinks the number will be closer to 15 million.

'While DVRs are causing a stir within the media and entertainment industry,
the general public has yet to show a strong interest,' said Bruce Leichtman,
president and principal analyst at LRG.

Leichtman pointed to today's relatively small 1 percent penetration of DVRs
three years after their launch. And only 5 percent of customers expressed a
willingness to pay for both a DVR and a monthly fee, LRG found.

Leichtman said cable operators will 'dabble' with DVRs as a competitive
response to direct-broadcast satellite, but video-on-demand will provide
consumers with much of the same functionality of DVRs at a cheaper
price.

September