Multiple customers of Arris will soon deploy network-based DVRs that will be used to "augment in-home DVR functionality," Arris (Nasdaq: ARRS) CEO Bob Stanzione told analysts last week.
Cox Communications CTO Kevin Hart told FierceCable earlier this month that the MSO is looking at using network or cloud-based DVRs to offer subscribers with physical DVRs additional storage capacity. While Stanzione wouldn't say which providers will use network DVRs to augment their services, candidates include Time Warner Cable (NYSE: TWC) and Comcast (Nasdaq: CMCSA), its two largest customers.
Cablevision (NYSE: CVC) is currently the only U.S. pay TV distributor that uses a network-based product for its primary DVR.
Selling servers that power cloud-based DVRs could drive new revenue to vendors such as Arris and Cisco (Nasdaq: CSCO), which has said it plans to make announcements involving cloud DVRs at the Consumer Electronics Show in January.
Arris posted $1.07 billion in revenue in the third quarter, up from $357.4 million last year, which was before it acquired Motorola Mobility's set-top business. It posted net income of 39 cents per diluted share in Q3, up from 22 cents this time last year.
- see the earnings release
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