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Digital video recorders (DVRs) may turn out to be the “last gasp” of cable, satellite and other traditional multichannel subscription video providers.  If users can get the same basic functionality (on demand viewing of the shows they want) over the Internet for free or paying for each show rather than a hefty monthly subscription, Who Needs a DVR?, as Nick Wingfield at the WSJ asks:

Among a more narrow band of viewers -– 18- to 34-year-olds -– SRG found that 70% have watched TV online in the past. In contrast, only 36% of that group had watched a show on a TiVo or some other DVR at any time in the past. That last figure is a fairly remarkable statistic. Remember that DVRs have the advantage of playing video back on a device where the vast majority of television consumption has traditionally occurred –- that is, the TV set. Although it’s also possible to watch shows over the Internet on a TV set through a device like Apple TV and Microsoft’s Xbox 360, most people watch online TV shows through their computers — which have inherent disadvantages, like smaller screens and, in most cases, no remote controls.

Indeed, if users are going to buy a piece of hardware, why buy a DVR when they can buy a Roku box or a game console like the XBox 360 that will put Internet-delivered TV on their programming on their “television” (a term that increasingly simply means the biggest LCD in the house, or the one that faces a couch instead of an office chair)— and save money?

This is precisely the point Adam Thierer and I have been hammering away at in this ongoing series.  The availability of TV through the Internet and the ease with which consumers can display that content on a device, and at a time, of their choosing are quickly breaking down the old “gatekeeper” or “bottleneck” power of cable.  Let’s see how long it takes Congress and the FCC to realize that the system of cable regulation created in the analog 1990s no longer makes sense in this truly digital age.

According to this new survey by NDS:

Americans rank the DVR [digital video recorders] as the third most indispensable household item (62%), after the washing machine (97%) and the microwave oven (86%) — Americans rank the DVR as the second most essential household technology item they can’t live without (81%), beaten only by the mobile phone (92%) — 3 out of 4 respondents with partners say that having a DVR makes for a happier home life

When you think about, it is incredible that DVRs only came on the scene in the late 1990s and yet now — less than a decade later — they are considered an “indispensable” technology by most people.

This has some important policy implications for debates over content regulation. In a paper I penned last October entitled, “Parental Control Perfection? The Impact of the DVR and VOD Boom on the Debate over TV Content Regulation,” I outlined how new video technologies, such as digital video recorders (DVRs) and video on demand (VOD) services, are changing the way households consume media and are helping parents better tailor viewing experiences to their tastes and values. I provided evidence showing the rapid spread of these technologies and discussed how parents are using these tools in their homes. Finally, I argued that these developments will have profound implications for debates over the regulation of video programming. As parents are given the ability to more effectively manage their family’s viewing habits and experiences, it will lessen—if not completely undercut—the need for government intervention on their behalf.

If you are interested, I have embedded the paper down below. Today’s survey results from NDS make it clear that the process I discuss in my paper is happening at an even fast pace than I originally predicted.

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