US cable to match satellite in DVR deployment by 2006

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Despite a three-year head start, US satellite TV providers will lose their DVR edge over cable companies by 2006, according to Internet-Based Video Services, a new white paper from research firm Parks Associates.

Although satellite companies began offering DVRs as early as 1999, they will not be able to overcome the advantages cable companies have in offering a complete bundle of fully integrated services. Parks Associates forecasts that, as a result, over one-half of all DVRs deployed by service providers in 2006 will come from the cable MSOs.

"Cable providers will increasingly dominate the DVR market," said John Barrett, director of research for Parks Associates. "Their networks have a huge advantage – they can already offer telephone services, video-on-demand, TV, and Internet access. Satellite players and telcos have to combine their capabilities to do so, which makes it much more challenging in terms of bundling, billing, marketing, and overall execution of their business strategy."

Satellite TV providers dominate this market now because cable companies were initially hesitant to deploy DVRs, according to Parks Associates.