Abstract
There is a potentially huge subscriber base for IPTV in China. Analog TV is very popular in Chinese households in downtown or rural areas. There were over 360 million TV users by the end of 2004, and over 100 million cable TV users. Almost every family has at least one set, and some city households have shown the trend of two or three sets at one home. Additionally, there were over 20 million broadband users in China by the end of 2004, where ADSL accounted for about 70% of the pie.
Because the installed base of TVs is so much higher than that of PCs in China, IPTV services such as TV Gaming and TV Education may help drive Chinese families toward widespread use of IPTV. An additional finding indicates that the Olympic Games being held in China in 2008 may also contribute to substantial growth in IPTV services during the forecast period. Although In-Stat feels that growth will be minimal between 2005 and 2008 and that there are currently many barriers still to overcome, there is evidence of substantial opportunity toward the end of the forecast.
This report assesses what IPTV means for China from the perspectives of Service Providers, Internet Content Providers (ICPs), and end-users and discusses impacts of technology and policy. Business models, market drivers and constraints (including piracy) are also discussed.
Forecasts include IPTV subscribers, and unit and revenue projections for Set Top Boxes (STBs).
Table of Contents
- Executive Summary
- Methodology
- What does IPTV Mean in China?
- Introduction
- End-user Perspective
- Potential Huge Subscriber Base for IPTV
- IPTV Advantages in Interaction, Ease-Of-Use and Price
- Key Applications Initiate IPTV Market
- Service Providers Perspectives
- Cable Operators Perspective
- Telecom Carriers Perspective
- ICPs Perspective
- Technology Perspective
- To Challenge the Bandwidth of Dominant ADSL Networks
- IPTV Multicast Conflicts with Telecom Network
- Video Encoding Format
- IPTV Middleware
- Policy Perspective
- IPTV Development Trend Analysis
- Business Model
- To Provide STB for Free in Bundles
- STB Sales Model is all about Scale
- Close Cooperation Between Vendors and IPTV Carriers
- Drivers
- Olympic Games in 2008 are a Strong Driver for IPTV
- IPTVs Performance in Interaction, Ease-of-Use and Price Advantage
- Telecom Carriers are Eager to Develop More Broadband Users/Revenue Streams
- ICPs Regard IPTV as a Good Opportunity for Resell
- Equipment Vendors are Anxious to Get Involved in a New Round of Investment
- Barriers
- Broadband Network has a Long Way to To to Meet IPTV Requirements
- IPTV Contents Must be Different and More Attractive
- Unifying IPTV Standards Makes the Process for Wide Adoption Long and Costly
- Facing Pirating in the Long Term
- Business Model
- IPTV Forecast 2005-2010 in China
- Subscribers
- STB Unit Shipments
- STB Shipment Revenue
- Carriers
- China Telecom Corporation (CTC)
- China Netcom Corporation (CNC)
- ICPs
- ICCTV
- EastTV
- Shanda
- BJIPTV
- Vendors
- UTStarcom
- ZTE
- Onewave
- Huawei
- Alcatel Shanghai Bell (ASB)
- TransVideo
- VCOM
- STB manufacturers
- Coship
- Changhong
- TCL
- DVN
- Conclusions
List of Tables
- Table 1. IPTV Market Forecast, RMB in Millions, US$ in Millions, 2005-2010
- Table 2. Advantages and Disadvantages of ADSL 2+, VDSL and FTTH
- Table 3. Encoding Format Development Situation
- Table 4. China IPTV STB Unit Shipments and Revenue US$ in Millions 2005-2010
List of Figures
- Figure 1. Subscriber Base Forecast 2005-2010
- Figure 2. China IPTV Framework
- Figure 3. China IPTV Compared with Cable TV, DVD and Broadband VAS
- Figure 4. Emerging Broadband Access Technologies
- Figure 5. China IPTV Value Chain
- Figure 6. IPTV Lifespan Compared with SMS and Broadband
- Figure 7. China IPTV Subscribers (In Millions) 2005-2010
- Figure 8. China IPTV STB Shipments 2005-2010
- Figure 9. China IPTV STB Shipment Revenue, RMB in Millions 2005-2010
