DVRs Changing the Way Americans Watch TV

"Most TiVo'd Moment" Reveals New Benefit to Pausing Live TV

DVRs Changing the Way Americans Watch TV

New York, NY - The DVR (digital video recorder) and the TiVo brand in particular have garnered incredible media exposure after TiVo Inc. issued a press release announcing the now infamous Super Bowl half-time show "wardrobe malfunction" as the most replayed moment the company has ever measured. Even before the Super Bowl, the DVR was considered to be the "it gadget" with various high-profile celebrity endorsements. Yet so far this product has not penetrated very far into the U.S. market, according to a survey by Ipsos-Insight, the global marketing research firm. Currently, industry estimates indicate that about 3.5% of U.S. households have a DVR. Ipsos-Insight's survey of 1,000 nationally representative American adults shows that 5.8% of people say they have a DVR--though higher than the industry estimates, a certain degree of consumer confusion is not uncommon with new technology products. Of current DVR owners, most bought their DVR through an electronics retailer (29%), followed by their satellite (17%) or cable provider (15%). As the survey was fielded right after the holidays, a good portion of respondents reported received their DVR as a gift (13%). The survey also found that satellite customers were almost two times as likely to have a DVR than cable customers (11.4% versus 5.6%), which reflects satellite providers' strategy to focus on DVR rollouts in order to combat cable's video-on-demand (VOD) offering. "The satellite players--DirecTV and EchoStar--have been very aggressive with connecting their customers with a DVR (DirecTV with TiVo and EchoStar with its own product)." said Lynne Bartos, a leader with the company's Cable, Media and Entertainment research division. "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." So which features are DVR owners using most often? Not all DVR owners say they skip commercials with their DVR all the time, though skipping commercial was the most popular activity the survey tested. The results revealed that about 63% of respondents say they skip commercials at least sometimes. Just over half (55%) of DVR owners say they watch instant replays of live TV and they pause live TV with their DVR. Further, respondents said that on average, about 58% of their TV watching time is done via functions of their DVR, while an average of 42% of the time TV is watched "live". "Certainly these figures demonstrate the way that DVRs are changing how Americans watch TV," commented Bartos. So, what do DVR owners think about this new technology? Perceptions are positive and, in many cases, higher than the perceptions of those who intend to get a DVR in the next 12 months. The majority of DVR owners (69%) say that DVRs are easy to use, and just over half (55%) know that DVRs are compatible with all types of televisions. However, current owners are least likely to say that DVRs are easy to self-install (44%): this percentage is lower than those who intend to get a DVR (57%). "The difference between what purchase intenders think about the self-installation aspect of DVRs and what DVR owners think implies that manufacturers and distributors who are marketing DVRs as a self-install product need to make sure that instructions are as user-friendly as possible and ensure toll-free help lines are in place and well-manned to avoid consumer frustration and buyer's remorse," said Bartos. Methodology Data were gathered using the Ipsos U.S. Express from January 16 to 19, 2004. Interviews were conducted via telephone among a nationally representative U.S. sample of 1,000 adults age 18 and older. A total of 973 adults with a television in their household were interviewed. Read Ipsos-Insight's other recent press release on DVR awareness and usage among American consumers. For more information, please contact: Lynne Bartos Cable, Media & Entertainment Research Ipsos-Insight 312.665.0556 About Ipsos-Insight Ipsos-Insight, the company's flagship marketing research division in the U.S., specializes in research for companies in the following industries: agrifood; cable, media and entertainment; consumer packaged goods; energy and utilities; financial services; health; lottery and gaming; retail; and technology & communications. Ipsos-Insight provides custom and tracking research services to domestic clients, as well as U.S.-based multinationals. It also offers concept and product testing, package testing, attitude and usage studies, omnibuses, tracking systems, brand equity, volume forecasting, marketing models, advanced analytics and global research. To learn more, visit: www.ipsos-insight.com. About Ipsos Ipsos is a leading global survey-based market research group, with revenues of 569.7 million euros in 2003. It offers a full suite of research services, guided by industry experts and bolstered by advanced analytics and methodologies in advertising, marketing, public opinion and customer loyalty research, as well as forecasting and modeling. Member companies also offer a full line of custom, syndicated, omnibus, panel, and online research products and services. To learn more, visit: www.ipsos.com. Ipsos is listed on the Euronext Paris Premier Marchй, and is part of the SBF 120 and Next Prime Indices as well as eligible to the Deferred Settlement System (SRD). Euroclear code 7329, Reuters ISOS.LN, Bloomberg IPS FP

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