Digital Video Recorders (DVRs) have shown their ability to create a stir throughout the media and entertainment industry, yet consumers have yet to show overwhelming interest. With lukewarm consumer acceptance of DVRs as a stand-alone product/service offering to date, the future of DVRs rests firmly on the supply side of the market - relying heavily on the deployment by cable and DBS providers for its future success or failure.

Consumer data discussed in this report is based on two nationwide surveys of US households conducted by Leichtman Research Group, Inc. (LRG) in the first quarter of 2002.

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