The question isn't, "Can DVRs reach critical mass?" They will, and that will transform the business models of the advertising and media industries. The latest forecast puts DVRs in 20% of U.S. homes by 2007. Based on that, the CEO of a major marketing company told me he's set 2007 as the deadline for remaking his business mix to account for the impact on TV advertising. The question is whether TiVo will be a leading DVR player when that happens.
1 million subscribers
TiVo will pass 1 million subscribers by year-end, half through satellite TV and half through stand-alone boxes. It still believes in stand-alone boxes, including new ones that combine DVR software with DVD players/recorders. It hopes to grow with DirecTV after Rupert Murdoch completes his acquisition of it. And Yudkovitz still wants to cut deals with cable systems. ("It is not early," he concedes, "but, fortunately, it is not too late.")