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Case study
Personal Video Recorders (PVRs): Personal video recorders (PVRs) are digital video recorders used to record and replay television programs received from cable, satellite, or local broadcasts. However, unlike VCRs, which PVRs replaced, PVRs offer many more functions, notably the ability to record up to 60 hours of programs and easy programming. DBA 7180, Managerial Economics and Business Theory 3A PVR consists of an internal hard disk and microprocessor. After the owner installs the hardware, the PVR downloads all upcoming TV schedules to the hardware via a phone or cable connection. Users merely enter the name of the show(s) they want recorded and the system finds the time and channel of the show and automatically records it. Users must subscribe to a cable or satellite system if they wish to record programs off these channels. Besides ease of programming and much larger recording capacity than video tape, PVRs allow the user to watch a prerecorded show while the unit is recording a new program, pause watching live programs (for example, if the phone rings) then resume watching the rest of the live broadcast, view instant replays and slow motion of live programs, and skip commercials. In effect, PVRs like older VCRs allow viewers to control when they watch broadcast programs (called "time shifting"). However, PVRs provide much sharper pictures and are much simpler to operate than VCRs, and PVRs allow the user to download the television schedule for the next week. Two companies currently sell the hardware and provide the subscription service: TiVo and ReplayTV. Both firms started in
1997. As of mid-2002 TiVo had nearly 500,000 subscribers and ReplayTV had about 100,000. Companies are developing new technologies that make it even easier for users to "snip" commercials. Cable companies have begun offering a combined cable box and PVR in one unit for a small additional monthly charge. This further simplifies setup and operation and the user gets a single bill.
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