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Broadband Video on Demand vs. Digital Video Recorders

VOD vs. DVRs

Before we consider the future of broadband video delivery, let's define some of the terms.

VOD - Video on Demand 

It once meant video on demand, which broadband cable subscribers could access from a cable operator server somewhere from a cache of stored programs whenever they wished. Whether or not there was an additional charge for the program was dependent upon the program. However, the average consumer thinks it means, "Watching the program you want to watch when you want to watch it." VOD now means what the consumer thinks it means.

DVR - Digital Video Recorder 

Means "digital video recorder." A VCR on steroids without tape.

PVR - Personal Video Recorder 

Means "personal video recorder."

All of those terms are permutations of video on demand. From VOD to DVR to PVR to SVOD to FVOD to TiVo (with, of course, the trademark; and in this instance it is not, repeat not, being used as a verb, so to speak) to PVOD (that's "pay") to PPVOD (that's "primarily porn") to more V-this and V-that, cable operators and marketers are trying to roll out services and features and explain them.

So which one will take the biggest piece of the pie? Some cable operators are hoping that when it comes to video on demand and digital video recorders, the whole is greater than the sum of its parts. Many cable operators are aggressively rolling out DVRs and VOD simultaneously across their markets. The most progressive operators view them as complementary, yet a perception still exists in some parts of the industry that it's a race to acceptance, and that the service that gets there first, wins.

However, according to A Survey of Video-on-Demand Users, a new report in Lyra Research's DTV View report series, digital video recorder (DVR) users watch more video on demand (VOD) programs than non-DVR users, and these findings held true for both free and paid VOD. This consumer behavior may be surprising to cable service providers as it challenges a widespread industry assumption that DVR and VOD technologies are competing for viewers' usage.

The findings may be surprising to cable operators, since they challenge a widespread industry assumption that DVR and VOD technologies are competing for viewers' usage. Some consumers also have the impression that the services are competitive, but that perception usually comes from consumers who aren't using them yet.

Even the researchers anticipated that the DVR users, in particular, would watch less free VOD than the non-DVR users because DVR users can readily time, shift and control their TV shows without using VOD.  So it appears it isn't about the technology. It's about the consumer benefit of control and convenience.

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