DVRs Seen in 52M Homes by 2014

A new study from MAGNA predicts that DVRs will be in 52.3 million, or 44 percent, of TV households by 2014, up from 28.6 million, or 25 percent, at the end of the most recent third quarter. And such a rise in DVR use is expected to have a significant impact on TV watching. From MAGNA’s On-Demand Quarterly report (PDF):

Over the 10 years between 2004 and 2014, we can estimate that DVRs will contribute to a 4% erosion in total viewing impressions across all dayparts.(a) However, rising DVR penetration will be more than offset by increases in TV consumption (which has been slightly less than1% per household in recent years) and increases in total households (which has been slightly more than 1%). These latter two figures will drive a 20% increase in total viewing impressions over this ten-year time-frame.

The research firm noted that DVRs were added to 1.3 million homes in the 3-month period ended Sept 30., and 1.5 million new homes got access to VOD. MAGNA breaks out its estimates for third-quarter DVR penetration for certain operators, among them: DirecTV (added 350,000 for a total of 6.2 million); Comcast (added 300,000 for a total of 4.4 million); Time Warner added 150,000 for a total of just under 4 million).

The MAGNA report also touched on Canoe Ventures and its chances for success, writing:

Although the potential of Canoe holds much promise, short-term challenges are rife: the market-size for advanced TV advertising is presently very small, and likely to be meaningfully impacted by troubles with the auto industry. Concurrently, operational issues and technical limitations may limit the speed with which the platform can move
beyond a stage which would be considered experimental to the largest national advertisers

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