Manufacturers are starting to roll out personal video recorders in Europe.

No longer will viewers have to scramble for a blank videotape and the users’ manual at the last minute. Personal video recorders are here. In the New Year British Sky Broadcasting will launch its integrated personal video recorder (PVR) based on NDS’ XTV platform in the UK. It will contain a 40-gigabyte hard-disk and will enable viewers to pause live digital programming and automatically record current or future broadcasts at the touch of a button.

American company TiVo has also just launched its first European PVR, manufactured by Thomson and available at retail. It is likely that its major US competitor, ReplayTV, will also launch in Europe next year. TiVo and XTV herald the start of the personal TV revolution in Europe – but who will win over a new breed of on-demand TV consumers?

Two key technologies are leading the way. Much hype has surrounded the trials of video-on-demand (VoD) services that take advantage of high-speed broadband technologies. However, it is PVRs that are set to take European markets by storm as easy-to-use, plug-and-play devices. It is likely that premium PVRs, such as XTV, will help to drive the take-up of digital and interactive TV services being rolled out by pay-TV operators.

PVRs offer several advantages over server-based VoD solutions for pay-TV broadcasters. The majority of rollout costs arise only when a subscriber is gained and the PVR is shipped. PVRs also require less bandwidth than VoD, especially at peak viewing times, as programs can be recorded on the hard disk at off-peak times. And although VoD offers a wider choice of content, it is likely that only a few ‘new release’ titles will generate the majority of revenues.

So who will pay for the PVR? Pay-TV operators have subsidized set-top boxes, but it is unlikely that they will pick up the tab for PVRs. British Sky Broadcasting has yet to release details of the cost of its XTV-based integrated personal television recorder, but it is expected to be a premium product. But one thing is definite. The personal TV revolution has started and PVRs will be vital in providing on-demand services.