• by Joe Mandese , March 1, 2004

Official industry estimates from Nielsen Media Research place digital video recorders penetration at about 3.5 percent of U.S. TV households, but data released last week from a well-regarded media researcher suggest it could be significantly higher, especially among satellite TV subscribers.

The data, which was derived from a survey of 1,000 nationally representative U.S. adults by Ipsos-Insight, found 5.8 percent said they have a DVR. Though higher than official industry estimates, the researcher said the differences might reflect "consumer confusion" over a new technology.

Whatever the absolute figures actually are, the Ipsos-Insights research indicates DVR penetration figures are more than twice as high -- 11.4% -- among satellite TV subscribers. And while cable subscribers lagged the average, cable operators are just now beginning to accelerate the marketing of DVRs or DVR embedded features to their subscribers.

Digital Video Recorder Ownership

Total U.S.:             5.8% 
Cable Customers:        5.6% 
Satellite Customers:   11.4% 

Ipsos-Insight survey of 1,000 U.S. adults fielded Jan. 9-11, 2004.

"I expect those percentages to come closer together as major cable operators like Comcast, Time Warner Cable, and Cox kick into high gear with their DVR rollouts," predicted said Lynne Bartos, an analyst in Ipsos-Insight's Cable, Media and Entertainment research division.

Whatever the absolute penetration of DVRs actually is, it's clear what one of subscribers' favorite features are. Nearly two-thirds (63 percent) said they skip commercials all or some of the time. (Twenty percent said they skip them all the time.)

The next most cited features were instant replays and pausing live TV (see data below).

On Friday, TiVo, the dominant branded supplier of DVR technology, unveiled plans to market a new model capable of recording up to 140-hours of programming.

Top Digital Video Recorder Applications

                        Skip Ads   Instant Replays    Pause 
Every Time I Watch
TV        20%                5%      10% 
Almost Always                15%               22%       6% 
Sometimes                    28%               29%      39%  
Rarely
11%               17%      21%   
Never                        25%               26%      24%  

Ipsos-Insight survey of 1,000 U.S. adults fielded Jan. 9-11, 2004.