Home  › Marketing › Strategies

TV 2.0: HDTV, Program Guide and DVR Outlook

  |  October 13, 2004   |  Comments

Next-gen TV technologies still lag, though the future looks promising.

The next generation of TV viewing technologies, including HDTV, Digital Video Recorders (DVRs) and interactive program guides, are set to grow modestly according to a flurry of recent research.

HDTV: Growth, but not hitting FCC expectations

Strategy Analytics forecast by 2008, 37 million US households will receive high-definition programming. By the end of this year, they predict over 14 million US households will own some type of HDTV capable hardware, up from only 8.7 million at the end of 2003. Despite the rapid growth curve, the adoption numbers will not, in Strategy's Analytics view, be enough to hit the FCC's goal of a full transition to the new standard within the next five years.

Interactive Program Guides (IPG): Three Companies Dominate

Viewers increasingly turn to interactive program guides (IPGs) to find out what's on TV, according to the latest research from InStat/MDR. IPGs are built into a variety of consumer electronics devices, including Digital TVs and Personal/Digital Video Recorders (PVR/DVR). The IPG market over the next four years is expected to grow at a compound annual growth rate (CAGR) of 36.9 percent, to projected revenue of nearly $1 billion by 2008. In a report, "Interactive Program Guides (IPGs) - the "Killer App" for Enhanced TV," the firm predicts three companies: Gemstar-TV Guide, Microsoft and Tribune Media Services, possess the wherewithal for long-term success and survival.

"IPG will still provide niche business opportunities for a few companies like Pioneer, Scientific Atlanta, and some in Asia and in Europe," Gerry Kaufhold, Principal Analyst Converging Markets and Technologies at In-Stat/MDR told ClickZ. "But for the most part, the 'big three' will still be defining the IPG market during the next five years or so."

Worldwide Value of IPG Usage
Fees and Licensing Fees
Worldwide
Total Revenues
Growth
Rate (%)
2003 $206.8 -
2004 $282.1 36.4%
2005 $390.7 38.5%
2006 $538. 37.7%
2007 $733.3 36.3%
2008 $995.9 35.8%
Compound Annual
Growth Rate
36.9%
Note: Annual Value in US$ in millions, annual
growth rate, Compound Annual Growth Rate
Source: In-Stat/MDR

DVR: Standalones will be the minority

According to a new Jupiter Research report, "PC and Standalone Digital Video Recorders: Strategies to Cope with an Uncertain Market," DVRs have failed to take off with consumers. While 55 percent of survey respondents own a DVD player, and an additional 10 percent plan to acquire one in the next year, a meager 4 percent currently own a DVR and only 4 percent more plan to buy one in the coming 12 months.

Device Ownership and Plans to Buy
Device Currently
Own
Plan to
Buy
Standalone DVD Player 55% 10%
Portable Music Player 27% 6%
Digital Surround Sound
Home Theater System
22% 6%
HDTV TV or Set-top Box 8% 5%
Portable DVD Player 7% 3%
DVD Recorder 6% 7%
Portable TV Set 9% 1%
DVR 4% 4%
Source: Jupiter Research

The report forecasts satellite and cable DVR providers will be the winners, controlling 80 percent of the market by 2009. Standalone units, such as TiVo and PC-based DVRs, currently represent only 39 percent of market share. That number is expected to drop to 20 percent by 2009.

ClickZ Live New York What's New for 2015?
You spoke, we listened! ClickZ Live New York (Mar 30-Apr 1) is back with a brand new streamlined agenda. Don't miss the latest digital marketing tips, tricks and tools that will make you re-think your strategy and revolutionize your marketing campaigns. Super Saver Rates are available now. Register today!

ABOUT THE AUTHOR

COMMENTSCommenting policy

comments powered by Disqus

Get the ClickZ Marketing newsletter delivered to you. Subscribe today!

COMMENTS

UPCOMING EVENTS

UPCOMING TRAINING

Featured White Papers

Google My Business Listings Demystified

Google My Business Listings Demystified
To help brands control how they appear online, Google has developed a new offering: Google My Business Locations. This whitepaper helps marketers understand how to use this powerful new tool.

5 Ways to Personalize Beyond the Subject Line

5 Ways to Personalize Beyond the Subject Line
82 percent of shoppers say they would buy more items from a brand if the emails they sent were more personalized. This white paper offer five tactics that will personalize your email beyond the subject line and drive real business growth.

WEBINARS

    Information currently unavailable

Jobs

    • Digital Marketing Associate
      Digital Marketing Associate (Connections Media) - Washington, DCConnections Media, LLC, a Washington, DC-based digital agency providing strategy...
    • Lead Generation Specialist
      Lead Generation Specialist (The Oxford Club) - BaltimoreThe Oxford Club is seeking a talented writer/marketer to join our growing email lead-generation...
    • Health Marketing Editor
      Health Marketing Editor (Agora Inc.) - BaltimoreCome flex your intellectual muscle as part of Agora, Inc’s (http://agora-inc.com/) legal team...