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Cable Firms Embracing Digital Video Recorders; Comcast Sees Big Gains; Satellite firms had used DVRs to attract viewers; now they lack that edge.(INTERNET & TECHNOLOGY)
Byline: REINHARDT KRAUSE
Comcast and other big cable TV firms are plowing ahead with digital video recorders -- devices that consumers want but that pose a threat to advertising revenue.
DVR technology -- a field pioneered by TiVo -- lets viewers pause, rewind or replay any live broadcast by recording it onto a hard drive.
It also lets users fast-forward past commercials. That's a big drawback to advertisers.
The devices provided 32% of the cable industry's $57.6 billion in revenue last year. The risk for cable firms is that as DVRs proliferate, advertisers will try to bargain down prices for TV commercials.
Among cable operators, Time Warner has marketed DVR services the most aggressively. But the No. 1 cable service provider, Comcast, is catching up.
"Time Warner has been pushing DVRs with a huge amount of success," said John Bernoff, analyst at Forrester Research. "Comcast is just starting to get going. But Comcast has a much larger number of subscribers (21.4 million) than Time Warner (10.9 million)."
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