Nielsen: DVR Use Up, America Readies For Digital Switch

The latest figures from Nielsen show that DVR penetration has climbed to 25% of U.S. homes--up 5% from nine months ago, as cable and satellite operators aggressively try to persuade customers to take on the devices. Separately, data shows that households may increasingly be preparing--albeit not at breakneck speed--for their TV service to continue uninterrupted during next year's digital transition.

Nielsen data confirms widespread anecdotal evidence: DVR users appear to be passionate about the hardware. Research shows that of the estimated 28 million homes with DVRs, some 30% have the devices teed up for more than one set.

Also, data shows that among DVR homes, 53% are cable subscribers, with 40% using DBS.

On the digital transition front, Nielsen last January pegged the number of homes that were not ready for the February 2009 switch at 10.2% of U.S. homes. In May, that had dropped slightly to 9.4%.

Among Hispanic homes, an even higher percentage may be preparing. In January, some 17.4% of homes were unprepared, Nielsen statistics show --which had dropped to 15.5% by May.

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Of course, a variety of other factors may contribute to the increased readiness.

Industry executives might argue that an ad campaign alerting consumers to the impending switchover is having at least some impact; marketing would be expected to increase in the coming months. The cable industry has launched an educational campaign it says will use TV time valued at $200 million.

New survey results in June from the Leichtman Research Group show that 84% of U.S. adults have "heard of the digital transition"--more than double six months ago. But some 30% of those without cable or satellite service (or telco TV) still "believe (the transition) will have no impact of their TVs."

Individuals in homes that are unprepared for the switch can use a $40 government voucher to help purchase a converter box to get ready (reportedly some 10 million voucher requests have been made so far). They can buy a new TV with a digital tuner, since sets purchased before 1998 and some maybe even as late as 2004 don't have them.

Or, they could do what the cable and satellite industry want: begin subscribing to those respective services, neither of which is expected to affect consumers' TV feeds in seven months.

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