Majority of US multichannel homes have DVR, and Netflix users opt for premium TV

Editor | 01-12-2012

Fascinating new data from the Leichtman Research Group has shown exactly how increasingly valuable the US market is becoming for both DVRs and over the top services.

Specifically, the On-Demand TV 2012: A Nationwide Study on VOD and DVRs report found that 52% of households in the US that subscribe to a multi-channel video service have a digital video recorder (DVR). This compares with just 4% of TV households that do not subscribe to a multi-channel video service. And in a hugely interesting indication of what could be a critical monetisable trend, 43% of all households with a DVR now have DVR on more than one TV set. This represents abut a fifth of all TV households and is growing rapidly. Only five years ago this figure was 6%.
By platform, the survey found that in addition, 71% of telco video subscribers, 63% of DBS satellite subs and 42% of cable subscribers have a DVR. OVer two-thirds (68%) of VOD users who also have a DVR agree that their TV service is better because they have both VOD and DVR.
In the content arena, LRG also found that a majority (51%) of Netflix subscribers now have a premium multi-channel video service, up 8 percentage points year on year and compared with 40% in 2010. Furthermore, and nailing the myth of cord-cutting, there was a marked decrease in those who would consider dropping a premium service because of the over the top package: 20% in 2012, compared with 36% in 2011 and 32% in 2010.
"The percentage of all TV households in the US with a DVR has essentially doubled over past five years, and DVR is functionality is expanding to more TV sets in the home," said Bruce Leichtman, president and principal analyst for Leichtman Research Group.
"Consumers are increasingly integrating DVR, as well as VOD and Netflix, on-demand TV viewing into their TV viewing patterns."