Opportunities and Challenges Facing China's IPTV Industry

"Policy loosening, taking the Olympic Games as an opportunity, the continuous development of China's IPTV industry, industry integration, platform sharing, and deepening cooperation are the future development trends. " Focusing on the expansion of new users, various free promotions and bundled promotions have driven the growth of the number of users; on the other hand, it focuses on improving the experience of existing users. Content-on-demand and video time-shifting are gradually becoming the core demands of users. CCTV International, Southern Media, and Radio International have also negotiated and cooperated with various local telecommunications in China. However, relative to the high cost of IPTV equipment, the income of IPTV services is very limited. An effective business model has not yet been formed. In 2008, IPTV still relied on low-price promotions to expand the market. Looking back on 2008 and welcoming 2009, the IPTV industry will leapfrog the year of "graphic change" from the year of "turning point". Policy loosening, with the Olympic Games as an opportunity, China’s IPTV industry continues to develop In January 2008, the "Notice of the General Office of the State Council on Forwarding Several Policies of the Development and Reform Commission and Other Departments on Encouraging the Development of the Digital TV Industry" was issued, which provided the policy tone for the development of IPTV. One is opening up to radio and television, which can enter telecom value-added services, and telecom can also participate in the construction of radio and television access networks. The time for "three networks integration" is becoming mature. With the implementation of China's major ministries reform, "three networks integration" "It will usher in a good development opportunity and realize the steady development of "three networks". In 2008, China's IPTV service market achieved rapid growth. Under the gradually clear policy environment, the number of users maintained a 100% year-on-year growth. China Telecom's IPTV business and user numbers in Shanghai, Jiangsu, Zhejiang, Fujian, Anhui and other regions have achieved a relatively large increase. Among them, Shanghai IPTV has grown the most rapidly. According to CCID Consulting's research data, in 2008, the number of IPTV users in China was 2.364 million, and the number of IPTV users in East China has begun to take shape. China's IPTV industry chain is beginning to take shape, and profit-making model exploration becomes a bottleneck At present, IPTV in East China has basically formed an industrial scale, especially in Shanghai, Jiangsu, Zhejiang, Anhui, Fujian and other places, which have basically formed a relatively complete industrial chain. The industrial chain of content and service integrators, network and terminal equipment suppliers, and network operators has been initially integrated. As more and more users will gradually accept the IPTV business, and the policy environment will become clearer, the business of related companies will gradually adjust, the content and services will be further deepened, terminal equipment will flourish, especially the vigorous promotion of telecom operators, China The scale of IPTV users will increase significantly in 2009. Although IPTV users have begun to take shape, how to achieve scale returns is the biggest problem facing operators. The main source of profit for foreign IPTV operators is to charge end users. Domestic users are accustomed to the low consumption of cable TV, which is similar to social welfare, and it will be difficult to adapt to the high consumption. Then as the number of IPTV users has formed a scale, the business model of charging advertisers is worth exploring. Further face users and break through homogeneity In order for IPTV to turn technical advantages into market advantages and economic advantages, it also needs to continuously cater to the needs of end users on the basis of close cooperation in all links of the industrial chain. How to provide consumers with the best service has also become the only way for the sustainable development of IPTV. The IPTV industry is learning from each other's strengths and making full use of its technical advantages. While deepening the on-demand service market, it also strengthens the content and quality of value-added services, optimizes its business model, and actively contributes to the realization of channel professionalism, program segmentation, and high-definition quality. End users provide a higher quality user experience. It broke through the vicious circle of serious homogeneity between IPTV and many competitors in one fell swoop. It has achieved fruitful success in key areas, thus paving the way for the next step of development. Industry integration, platform sharing, and deepening cooperation are the trends of future development At present, the development of IPTV is still in the initial stage of large-scale development, and it is facing many problems. With the changes of the general environment, further deepening of integration, integration and integration have become the consensus and concerted action of the industry. Content and service integrators, network operators, and network and terminal equipment suppliers have deepened cooperation, and accompanied by the "Internet Audiovisual Program Service Management Regulations", "Notice on Several Policies Encouraging the Development of the Digital TV Industry", etc., and the "Three Networks Convergence" "Relevant specific policies will be further introduced, and the policy environment will usher in further breakthroughs. This means that the time for industry integration and platform sharing is becoming mature. The innovation and promotion of content and applications also have organizational support, and cooperation has also allowed all parties to have more resources for market promotion. Technical standard conflicts are further weakened under the leadership of policies and the market, reducing the internal friction of industry competition. Telecom operators become the driving force to promote the development of the industrial chain At present, all links of China's IPTV industry chain are complete, and cooperation and competition in all links are initially launched in the construction of IPTV projects in various regions. However, China's IPTV industry chain has not yet been fully connected, the interest relationship between upstream and downstream companies has not been straightened out, and the development of the industry chain is still in its infancy. With the gradual clarity of industrial policies, changes in consumer demand, and the continuous improvement of the industrial environment and technology, China’s telecom operators have continuously strengthened their in-depth cooperation with content providers and equipment suppliers, and actively cultivated the IPTV market. Constantly explore new models of IPTV development. It can be said that China's telecom operators will be the driving force behind the development of the IPTV industry. However, the financial crisis hit, the overall global economic growth has slowed down, and the investment of telecom operators is facing tremendous pressure. Although the development of users has ushered in a turning point year, the poor expectations of the overall economic environment will become the biggest challenge facing the development of the IPTV market.