Yankee Group ups DVR penetration forecast to 33.5 mln DVRs by 2008

7 million American homes will have a DVR by the end of 2004. The study from The Yankee Group expects 33.5 million to have one by the end of 2008. Aggressive pricing resulting from News Corp.’s acquisition of DirecTV and DVR services such as Highlights-on-Demand for NFL Sunday Ticket subscribers will drive DVR penetration on the DBS platform. Cable operators will continue to extend their DVR deployments to new markets and initial take-rates will hold true for newer markets. Consumer electronics manufacturers will continue to integrate DVR functions into DVD players, TVs, gaming consoles, and other devices. Consumer electronics manufacturers will deploy TiVo’s basic service on low-cost devices that require no monthly service fee. This will lower trial barriers for consumers.

The Yankee Group’s 33.5 million household DVR forecast represents a raise in their previous forecast by 2%, largely because of somewhat faster deployment of DVRs by cable operators than originally anticipated, the group said.