12-Aug-02
PVRs set for slow and fragmented growth in Europe according to Screen Digest report
The PVR (
personal video recorder) is set to become a key part of the European home entertainment experience, but it will take longer than many expect to become a mass-market item. Contrary to other recent studies predicting more bullish growth for initial consumer take-up, a new report from media analysts Screen Digest suggests European consumer adoption will initially remain conservative. According to
Personal Video Recorders: Market assessment and forecasts 2001-2006, the market will not take off until the introduction of integrated PVR technology by consumer electronics manufacturers.
Screen Digest expects a total of 5 million European households to have at least one PVR system installed by 2006. According to the report, the slow deployment of PVR-equipped set-top boxes by satellite operators has stymied hindered growth, compounded by low consumer understanding of what a PVR actually does.
The report, proposes the European PVR market will become increasingly fragmented as consumer electronics firms enter the marketplace. By integrating PVR functionality into DVD players, TV sets, and other devices, these companies will bring with them the strength of brand recognition. By 2006, diverse products in the home such as TV 'ssets with a 'pause' button will sit alongside digital set-top-box PVRs, DVD-players with hard drives, games consoles offering home networking capabilities and network-based PVR services offered by video-on-demand companies. The home entertainment system will become diverse dominated by a new generation of integrated devices all competing for consumer attention. The report estimates that consumer electronics devices with some PVR functionality will account for nearly 40% of the total European PVR market by 2006. The report estimates PVRs with integrated capabilities will account for 15% of the total PVR market by 2006.
The author of the report Arash Amel claims, "Although the current consensus is that satellite operators will be the driving force behind consumer take-up of the PVR, recent our research suggests that the consumer electronics industry will be be the one of the most significant long-term drivers in this market". Amel asserts, "Currently the greatest weakness of the PVR is its inability to archive or store recorded material. As result, the consumer electronics manufacturer will play a key role in igniting consumer interest. In the long term, a combined unit - such as DVD recorder with PVR capabilities - will become the focus of the home entertainment system a common feature of the home entertainment set-up".
The study proposes the US PVR market will become increasingly fragmented with the introduction of new product devices. By 2006, diverse products in the home such as TV with a 'pause' button will sit alongside digital set-top-box implementations, DVD-players with hard drives, games consoles offering home networking capabilities and network-based video-on-demand services. The home entertainment system will be dominated by a new generation of integrated devices all competing for consumer attention. The report estimates PVRs with integrated capabilities will account for 15% of the total PVR market by 2006.
Although pay-TVoperators and PVR companies subscription services such as TiVo have have paved the way for initial consumer adoption in territorial pockets, going forward their stronghold continued presence in Europe will depend on how quickly they can diversify. The report proposes these operators will eventually corner the PVR budget market but only by diversifying into the integrated set-top box and hybrid consumer electronics fields through the licensing of their technology and providing services to the products of other manufacturers. In the future, the report asserts, these companies will have to licence their technology to manufacturers of integrated digital set-top boxes and consumer electronics in order to maintain a long-term foothold in the European PVR market.
An executive summary of the report is available on request. The report contains over 100 pages of text, charts and tables. Interviews with the authors of this report can be arranged on request.
