• by David Goetzl  @dgoetzl, September 11, 2007

DVR penetration is expected to reach more than a third of U.S. homes by 2011, according to a new report from Magna Global. And in a sign of just how fast the devices are spreading, the projection of 40.4 million homes (34.8%) then is considerably higher than what its research projected just three months ago, when it estimated penetration would be at 19.5%.

Other projections in the report for 2011: 62.3 million homes will have VOD, more than 95% of cable and telco TV subscribers, and nearly 75% of homes will have broadband access.

The report also found that current DVR users are actually using their devices slightly less. In the second quarter this year, Magna found that among 18- to-49-year-olds with DVRs, 19.3% of time spent watching TV was done via a DVR--down from 20.1% at the end of 2006.

Magna also said more than a quarter of DirecTV's 16.3 million subscribers have DVRs (4.4 million homes)--and Dish Network, believed to be used by less upscale homes than DirecTV, has 38% of subscribers with DVRs (5.1 million homes). The two satellite operators are exploring pooling resources to offer advertising options where ad messages could be overlaid on the screen during DVR-enabled fast-forwarding.

Leading cable operator Comcast has DVR penetration of 14.5% of customers, in 3.5 million homes, according to Magna--which also estimates that Time Warner Cable's DVR penetration is at a higher 22.2%.