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HOME • MANAGE SUBSCRIPTIONS • MEDIA KIT
Only Four Percent of TV Viewing Recorded
by Jack Loechner, Wednesday, November 1, 2006, 3:00 AM

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Only Four Percent of TV Viewing Recorded

According to new consumer research from Leichtman Research Group, VOD is now in 25 million digital cable homes, and 60 percent of digital cable subscribers have used VOD, up from 25 percent two years ago. The research firm says, however, that the overall impact of DVRs and VOD on US television viewing remains small. LRG estimates that less than 4% of all TV viewing in the US today is of recorded DVR programs or on-Demand viewing - up from about 2% a year ago.

The study found that the number of Digital Video Recorder (DVR) and Video-on-Demand (VOD) users have significantly increased in recent years. Sixty percent of all digital cable subscribers have used VOD - up from 25% two years ago, and about 12% of households in the United States now have a DVR - up from 3% just two years ago.

Other key findings include:

  • The mean reported number of programs recorded each week in DVR households increased by 23% in the past year, to 11.3 programs recorded per week
  • Among cable VOD users, the reported mean number of total on- Demand programs and movies ordered per week increased by 33% in the past year, to 4.8 per week
  • Premium-on-Demand programs and movies account for half of all reported on-Demand usage
  • 62% of DVR subscribers, and 64% of VOD users, say that they usually watch recorded or on-Demand programs when there is no regularly scheduled TV on that they want to watch

Top Cable MSOs in the U.S.

Passings

Subscribers

Availability

Penetration

Net Adds in 2Q 2006

Net Adds in 2Q 2005

Basic Cable

111,975,000

58,800,000

52.5%

(118,000)

(220,000)

Digital Cable

111,600,000

28,950,000

99.7%

25.9%

800,000

660,000

Broadband

Internet

109,600,000

26,675,000

98%

24.3%

910,000

875,000

Telephone

65,100,000

6,550,500

62%

10.1%

740,000

465,000

Sources: The Companies and Leichtman Research Group, Inc.

DBS

Subscribers

Net Adds in 2Q 2006

Total New Subscribers

Subscriber Acquisition Cost

Average Revenue Per Sub/Month

DIRECTV

15,513,000

125,000

863,000

$642

$71.59

EchoStar

12,460,000

195,000

824,000

$683

$62.71

Total DBS

27,973,000

320,000

1,687,000

Sources: The Companies and Leichtman Research Group, Inc.

On-Demand TV services, says LRG, have made major strides in the past year, and these trends will continue. By the end of 2010 over 50 million households will have a DVR and about 42 million will have access to VOD from their cable provider. Despite the growth in users and usage of DVRs and VOD, these services still represent a very small portion of all TV viewing in the US.

To find the 3rd quarter Research Notes from Leichtman Research, please visit here.

3 comments on "Only Four Percent of TV Viewing Recorded"

  1. Walter Graff from Bluesky Media
    commented on: November 02, 2006 at 1:21 AM
    I've seen numbers as low as this article states and as high as 11-12%. I think it is very much on target and says a few things.

    First, for the advertising world, fear not! Folks are not TIVOing over your commercials. The reason most ads are not working is one, you can't sell a product that people don't want. Did I mention many of the American auto manufactures?

    Two, a good commercial is not the same as effective advertising. The advertising industry is broken for the most part, and yet even those these types of articles are released again and again for some reason folks have instant amnesia and keep saying that advertising is dying because no one is watching. They are, but they just don't care about your ingenious, narcissistic ads.

    And for the viewer as a whole is says that technology may change, but viewing habits don't really. Oh, blame the web, Ipods, and all the other forms of entertainment that really aren't hurting anything really, but the reality is folks still like to sit down to the show they like when it's one. That is one of the elements that makes seeing your favorite show so exciting.

    I know posters such as Pete above can't believe it. 'Everyone' is time-shifting. He and 'others' can't watch TV without recording. As they say if you give someone a hammer everything looks like a nail. Sort of like how the folks who can't believe none watches Studio 60 are all folks who work in and around the industry. The same folks all have Tivo, etc, because they feel as someone working on the edge of the television industry, it is their duty. And wouldn't you know it, everyone else they know in the industry does too. But visit many homes of 'ordinary' folks as I do and they'll tell you those devices are not something they are interested in. Big flat TVs, maybe.

    This all proves one thing, as much as the industry creates their own dust, not much really changes when it comes to the core of what a television viewer is.

    Walter Graff Bluesky Media www.bluesky-web.com

  2. Pete McKenna from Clear Channel
    commented on: November 01, 2006 at 11:02 AM
    you have to be kidding about the actual usage, everything we watch is tivoed. Everyone I know who has this uses it all the time. The only thing i try to watch live are sporting events.

  3. Mndy kanaskie from silver lane prods
    commented on: November 01, 2006 at 10:13 AM
    Seems Neilson is more antiquated than we think.

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