A DVR (also called PVR, for Personal Video Recorder) records TV programming on a digital disk, a hard drive within the device. It allows users to pause live TV, skip commercials, and record desired programming without setting up the device for each recording incident. TiVo is the best-known DVR manufacturer, and offers stand-alone devices for sale. TiVo also provides the software for multiple dish and cable operators such as DirecTV, EchoStar and Cox. Other cable operators such as Time Warner have their own DVR software, which is integrated into cable set-top boxes.

Empower estimates between 18-20% of total households have a DVR. The truth is, no one actually knows for certain because Nielsen’s DVR sample is not representative of the total U.S. We do know that TiVo currently has 1.5MM stand alone units in the marketplace. A stand alone unit is described as a TiVo unit that was purchased at a retailer and is hooked up to a user’s current cable or broadcast feed. In addition to the stand alone units, there are 2.9MM TiVo DirecTV subscribers resulting in a total current TiVo universe of 4.4MM subscribers, or 28% of DVR households. The remaining 72% have a DVR other than a TiVo, obtained through their cable or other satellite provider.

Most people who purchased DVRs prior to mid-2004 did so because they sought them out as a separate device, versus more recent DVR owners who accepted the technology as part of a digital cable or satellite subscription. The early adopter’s preferred uses for TiVo have been time shifting programming and skipping commercials. Research suggests that these early adopters are more likely than the general population to be ad-averse, and likely avoided ads even before technology made it easier. Data from the Nielsen TiVo panel reveals that they do indeed skip ads when in playback mode–anywhere from 70% to 100% of the time. Ad skipping is highest for pre-recorded programs and top primetime draws. DVR users typically increase the amount of TV they watch over their pre-DVR-ownership levels.

A March survey by Millward Brown found that 42% of non-DVR owners recalled specific brands in commercials they had seen, such as Ford or Taco Bell. For DVR owners, the number was 43%. The similar levels of ad recall most likely reflect viewers paying attention when they are fast forwarding to the end of the commercial pod and not leaving the room or switching to another channel. They are still “seeing” the commercial in fast-forward mode and therefore logging it in their memory, but the message might not be as effective.