NewsBriefs
Network-Based DVR Holds Promise
By KA Staff
Oct 12, 2006, 14:10

A few months ago, Cablevision announced an exciting new service: Customers would be able to record cable programs and play them at their convenience, without purchasing DVR equipment. Recorded programs would be stored on Cablevision’s server until the subscriber was ready to view them. Cablevision argued that using the network-based service was just like having a DVR, only more flexible and less expensive. But content providers didn’t see it that way, and sued to stop Cablevision. The service was suspended until the legal issues were resolved.

Today, only a few network-based personal video recorders, or nPVRs, have been deployed in North America, and the only content available is what the service providers have produced themselves.

But nPVR still has the potential to radically change video networks’ pricing metrics, advertising, and content distribution, according to a new study from ABI Research. Once the technology is proven and content providers sign on, nPVR will help propel the overall DVR market from about 20 million subscribers last year to more than 250 million in 2011.

The reason for nPVR's importance: Storing video on network servers is much less expensive than storing it on hard disks in set-top boxes or stand-alone DVRs. ABI Research believes the largest market for nPVR will be in countries like India and China where client-side DVRs aren't available.