Tivo Sales Struggle As PVR Penetration Reaches 15%

By David Richards | Monday | 02/02/2009

Tivo, the digital video recorder launched by Seven Media, is struggling with insiders admitting that the Company will miss their December target of 25,000 units. However, Harvey Norman claim that it is an important product that is helping drive the PVR category.

Sales via mass retailers including Harvey Norman, Domayne, JB Hi Fi and Dick Smith are expected to fall well short of their original target of 50,000 units, with questions now being raised as to whether Seven will continue selling the PVR.

According to the Financial Review only 12% of households have a digital video recorder. This is up from a reported 6.9% a year ago.

Of the 12%, 8.2% are believed to be Foxtel devices however a check by ChannelNews of PVR shipments show that the installed base could be as high as 15% if Foxtel are claiming 8.2% of the market.

GFK were unable to give a precise number on PVR sales that they track.

David Ackery, General Manager of Electrical at Harvey Norman who were the original sellers of the Tivo in an exclusive deal with Seven Media, said, "PVR sales are holding up well and the Tivo unit has helped us to grow the category. We are up on last year and at a guess I would say that penetration of the market is around 15 to 18% if one includes Foxtel."

Recently TV research company OZ TAM said that as of 2010 they will start tracking the "time shifted" viewing habits of consumers .