New data from Parks Associates (www.parksassociates.com) shows the total number of cloud-DVR subscribers worldwide will exceed 4.6 million in 2015 and total 24 million by 2018.

"Time-shifting content has led to an evolution and new challenges in television business models," Brett Sappington, director, Research, Parks Associates, says. "Though the basic features of the DVR are the same, moving the service to the cloud is surprisingly complex. However, it opens up a variety of new opportunities for consumers and operators. Beyond expanding storage capacity, a cloud-based DVR impacts viewing features, revenue opportunities, and rights agreements with content creators."

Operators are interested in deploying cloud DVR because these solutions will reduce set-top box costs, eliminate costly replacements, and provide support for enhanced features, which will open new revenue opportunities, he adds. "There are risks in cloud DVR expansion, as there are when deploying any new technologies, alongside unique challenges from increased network data traffic and negotiations for content rights.