IMS Research estimates that by the end of 2005, more than 2.6 million households in Europe were using a digital video recorder (DVR). By 2010, this market is forecast to reach more than 41 million households.

Growth is expected to come primarily from operator deployments of integrated DVRs, although digital terrestrial television (DTT) and free-to-air satellite DVRs will make a significant contribution to the total market.

Prior to 2005, the only successful DVR story in Europe was Sky+ in the United Kingdom. This is beginning to change. In 2005, various pay-TV operators, including Sky Italia, Telewest, NTL, Viasat, Casema, and Premiere launched or announced plans to launch a DVR service.

Furthermore, significant growth in DTT DVR shipments took place in 2005 thanks to strong adoption of the digital services in the United Kingdom, France and Germany.

Two factors are likely to contribute to this growing DVR market. “As in the United States, operator deployments of DVRs will be a key driver for DVR adoption across Europe,” Jack Mayo, analyst at IMS Research, said. “However, in Europe, unlike the United States, growth of DTT services is also likely to result in a considerable number of DVR users. DTT is expected to remain the second largest platform, after satellite, for DVR adoption in Europe through 2010.”