TECHNOLOGIES TO watch - Consumer Electronics Association

3. The PC-Based DVRCompanies such as Houston-based SnapStream offer digitalvideo recording via a personal computer. The service permitsInternet surfers to schedule and record TV shows and playthem back online. The PC must have a TV tuner card, but thehard drive acts as the server for the stored programming.Sales numbers are not available so it’s difficult to measure itssuccess. However, it’s unlikely that a large number ofAmericans will ever be comfortable watching television ona PC. But, that said, home networking devices now arepermitting consumers to transfer PC-based files to their TVs.In the coming years, the PC-based DVR service could be usedas a programming warehouse. Consumers could literallystore and index hundreds of hours of programming on thePC – and then transfer a specific show to the TV wheneverthey were in the mood.Is It Better Than the VCR?To achieve a mass audience, any new product or technologymust either be demonstrably better than its predecessor and/orfulfill an ongoing consumer need or desire. The Palm Piloteliminated the need for carrying around a large notebook filledwith phone numbers and schedule reminders. And themicrowave answered the busy consumer’s call for a faster wayto cook dinner.Unquestionably, the digital video recorder is a remarkableimprovement on the VCR. For instance:■■■The set-top can record as many as 300 hours ofprogramming without a video tape. Consumers nolonger have to worry about stacking those unwatchedcassettes on their coffee tables.The DVR playback delivers a digital picture that rivalslive TV.Unlike the VCR, which many consumers still don’t howto program, you can instruct your DVR to record ashow by touching a button.■■The commercial-skipping feature enables viewers towatch a show without interruption.The “Pause Live TV” button ensures that you willnever miss a single moment of your favorite showeven if you get a phone call or a family member startsgabbing during the episode.Will DVR Growth Hit Fast-Forward?The digital video recorder is in just two million homes, butsome analysts believe that it will reach 40 million homes in thenext five to seven years. Is that possible? If the history of theVCR is any gauge, the answer is yes.VCR1980 – 1.1M Homes1985 – 20.9M Homes1990 – 68.6M HomesSource: Nielsen Media ResearchWith features like these, it’s easy to understand why DVRowners are so enthusiastic about their new toy. In fact, TiVo’sresearch shows that 97 percent of its customers haverecommended the service to a friend. Consequently, despitethe disappointing sales to date, research firms are bullish onDVRs.However, it’s still unclear if the DVR truly fulfills a consumerneed. Despite the programming hassles, most consumers arecontent with their VCR. It’s durable and reliable. And, evenwhen it does break down, you can buy a new one for lessthan $100.Is the VCR a Market Barrier?Absolutely. It’s the same as if there were suddenly a newproduct to replace the microwave. The high-speed cookingdevice is a staple in most households. Like the VCR, itperforms well and is relatively inexpensive.21OCTOBER 20035 TECHNOLOGIES TO watch