Satellite television providers will lose their digital-video-recorder (DVR) edge over cable companies by 2006, despite having a three-year head start, says a new report from an American based market research firm.
The
Internet-Based Video Services white paper from Parks Associates says that although satellite companies began offering DVRs as early as 1999, they will not be able to compete with cable companies who can offer a complete bundle of services such as telephone, video-on-demand, television and internet access.
Parks predicts that as a result of this, over one-half of all DVRs deployed by service providers in 2006 will come from organisations specialising in cable.
Director of research, John Barrett said: “Cable providers will increasingly dominate the DVR Market. Their networks have a huge advantage – they can 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.”
According to Parks, cable companies were initially hesitant about introducing DVRs as they allow users the freedom to pause and rewind live television and this has allowed Sky to take the lead. However, if predictions are correct, the cable industry will be able to close the gap and soon erase satellite’s lead in the market.
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