July 22, 2005

Households double up on digital video recorders

By Paul Bond

LOS ANGELES (Hollywood Reporter) - Households using digital
video recorders and video-on-demand in the U.S. doubled in
June, compared with the same month a year ago, according to a
recently released study.

The Leichtman Research Group study also determined that 88%
of DVR users "usually skip commercials when they watch programs
recorded on their DVRs."

Although the ad-zapping statistic might appear jarring to
advertisers and TV executives at first blush, LRG president
Bruce Leichtman notes that 56% of DVR users also skipped
commercials before getting their DVRs.

"There's this wide-eyed assumption, 'My god, people are
skipping ads because of DVRs.' But people have been walking
away from commercials forever," he said.

According to the LRG survey, 8% of U.S. households used
DVRs as of last month, up from 3% in the previous year, and 23%
have used VOD at least once in their lives, up from 10% a year

Leichtman said his firm predicts that by the end of 2008,
DVRs will be in 33.8% of U. S. households and VOD in 32.2%,
oftentimes with the technology for both being in the same

"These things are starting to move," he said. "But keep it
in perspective -- while a lot of entertainment executives have
it already, we have to pay attention to where these are in the
general consumer base."

He said that of those with DVR, 38% get it by way of
satellite TV, 29% from cable and 29% are stand-alone users.

Leichtman also said 88% of adults nationwide have at least
heard of DVR technology, up from 74% a year ago.

The findings are based on a survey of 1,350 U.S.

Reuters/Hollywood Reporter