In Depth

44% of U.S. TV Households Will Have Digital Video Recorders by 2014, Magna Says

Digital video recorders will be in 52.3 million U.S. households—or 44% of TV households—by the end of 2014, a leading ad buyer estimates.

Between the time DVRs became popular, in 2004, and their 10th anniversary in 2014, the machine will contribute to a 4% erosion in total viewing impressions across all dayparts, Magna said in its latest On-Demand Quarterly report.

But the erosion caused by DVRs will be more than offset by overall increases in TV consumption and an increase in the number of total households. In 2014, total viewing impressions will be up 20% from 2004, Magna said.

“Of course, while DVRs will continue to disproportionately impact younger target audiences and network prime time, the aging of our society and the gradually eroding importance of network prime time will likely render such targets incrementally less important in the years ahead,” said Magna senior VP, director of industry analysis Brian Wieser in the report.

Magna expects that by 2014, 68.8 million households will get video-on-demand, up from 40.4 million in the third quarter of 2008.

The number of homes with broadband access will rise to 86.2 million households by 2014, up from 68.3 million this year.

The reports also took a look at Canoe, the cable industry consortium putting together advanced, interactive and targetable platform for advertisers.

“Although the potential of Canoe holds much promise, short-term challenges are rife: The market size for advanced TV advertising is presently very small, and likely to be meaningfully impacted by troubles with the auto industry,” the report said. “Concurrently, operational issues and technical limitations may limit the speed with which the platform can move beyond a stage which would be considered experimental to the largest national advertisers.”