[IMS Research reports a shift from SD DVRs to HD DVRs particularly in the US.]

Austin, TX -- The long anticipated growth of the DVR is now being seen and some trends are beginning to emerge. While still early in its growth stage, IMS Research has observed a shift from standard definition (SD) DVRs to high definition (HD) DVRs, particularly in the US. IMS Research is estimating that HD DVRs made up 29% of the total worldwide shipments in 2005, and is forecasting this to grow to 54% by 2010.

The fastest growth of HD DVRs can be seen in the US. In 2005, US shipments of HD DVRs were already estimated to represent 36% of all DVR shipments. Motorola, one of the largest suppliers of DVRs for the US market, only produces an HD DVR, and has since it rolled out its first DVR.

Why is this happening?

* The HD DVR provides a smooth transition from regular programming to HD TV, without a future truck roll and without customers being required to exchange boxes on their own. This will save the operator money and keep from inconveniencing the customer.

* Operators are looking ahead to increasing ARPU from each household. Providing additional services to existing customers is less costly than bringing in new customers.

"While the transition from SD DVRs to HD DVRs will be most apparent in the US, it will likely occur in other regions as well," states Jack Mayo analyst at IMS Research. "For example, European users have been more likely to purchase a SD DVR, however, as operator deployments increase and HD services become more prevalent this will begin to change."

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