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DVR and VOD Users and Usage Continue to Grow

But on-Demand TV Still Has Minor Impact on Total TV Viewing

Durham, NH – July 27, 2006 – New consumer research from Leichtman Research Group, Inc. (LRG) found that the number of Digital Video Recorder (DVR) and Video-on-Demand (VOD) users have significantly increased in recent years. Sixty percent of all digital cable subscribers have used VOD – up from 25% two years ago, and about 12% of households in the United States now have a DVR – up from 3% just two years ago.

However, the overall impact of DVRs and VOD on US television viewing remains small. LRG estimates that less than 4% of all TV viewing in the US today is of recorded DVR programs or on-Demand viewing – up from about 2% a year ago.

These findings are based on a survey of 1,350 households throughout the United States, and are part of LRG’s study, On-Demand TV 2006: A Nationwide Study on VOD and DVRs. This is LRG’s fifth annual study of this topic.

Other key findings include:

  • The mean reported number of programs recorded each week in DVR households increased by 23% in the past year – to 11.3 programs recorded per week
  • Among cable VOD users, the reported mean number of total on-Demand programs and movies ordered per week increased by 33% in the past year – to 4.8 per week
  • Premium-on-Demand programs and movies account for half of all reported on-Demand usage
  • 62% of DVR subscribers, and 64% of VOD users, say that they usually watch recorded or on-Demand programs when there is no regularly scheduled TV on that they want to watch

“On-Demand TV services have made major strides in the past year, and these trends will continue. By the end of 2010 over 50 million households will have a DVR and about 42 million will have access to VOD from their cable provider,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. “Yet, despite the growth in users and usage of DVRs and VOD, it is important to note that these services still represent a very small portion of all TV viewing in the US.”

About Leichtman Research Group, Inc.

Leichtman Research Group, Inc. (LRG) is an independent firm that specializes in research and analysis on broadband, media and entertainment industries. LRG combines on-going surveys and analysis with years of hands-on industry experience to provide companies with a richer understanding of the potential impact and adoption of new products and services. For more information about LRG, please call (603) 397-5400 or visit www.LeichtmanResearch.com.

On-Demand TV 2006: A Nationwide Study on VOD and DVRs is based on a telephone survey of 1,350 adults age 18+ from throughout the continental US that was conducted in June, 2006. The random sample of respondents was distributed to best reflect the demographic and geographic make-up of the US. The overall sample has a statistical margin of error of +/- 2.7%.

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