Personal video recorder (PVR) manufacturer, TiVo, is understood to be considering a return to the UK market just a year after it withdrew following disappointing sales.
TiVo stopped producing its boxes in the UK last February after the expiry of a three year contract with its hardware partner, Thomson Multimedia. However, sources suggest the company is in negotiations with manufacturers about reintroducing its technology this side of the pond.
It is understood that the new Tivo PVR would include a digital-terrestrial tuner to target the strong retail market created by Freeview. However, it is unlikely that a UK device would include a satellite or cable tuner, which would have allowed Sky Digital or cable customers to record one programme whilst watching another.
Despite selling only around 25,000 boxes in the UK, TiVo is understood to have been looking for a new partner to produce a British version of its second generation PVR for some time. The new box is currently being sold in the US, where TiVo has over one million subscribers.
TiVo would face tough competition in the UK from Sky+, which recently launched with an extensive £20 million advertising campaign. In October 2003 Sky had approximately 150,000 subscribers to the Sky+ service. However, forecasts suggest that uptake is set to increase significantly with around 1 million people adopting the device by 2005, according to predictions from PHD.
Lehman Brothers analysts expect Sky to report an additional 90,000 Sky+ customers in its H1 results. This would put the total at around 211,000. Sky has a target of 315,000 by the end of June 2004, although the consensus is that this is likely to be surpassed. Merrill Lynch forecasts additions of 130-150,000 in H1, putting the total at 250-270,000 (see Sky+ Sales Expected To Be Strong In BSkyB Interims).
Recent research carried out by PHD suggests that the increasing uptake of PVRs could transform the media planning and buying process by 2006. The ongoing study into the effect of PVRs suggests that the ability to skip through commercial breaks could challenge the currency of television trading and threaten the income of television channels dependent on advertising revenue (see PVRs Could Transform The Media Planning Process).
