20 million IPTV users worldwide
The Beijing Olympics provide opportunities for IPTV to develop users' experience marketing. In the second quarter, the cumulative number of IPTV users in China reached 1.708 million, an increase of 30.2% from the previous month. Market research company Gartner released the latest survey report that this year, global Internet TV platform users are expected to reach 19.6 million, an increase of 64% over the same period last year.
The rapid growth of IPTV provides more and more users with diverse options. Tests on IPTV during the Beijing Olympics show that IPTV can not only bring diversified choices to traditional TV users, but also that the commercial potential contained in IPTV is huge. A market research company iSuppli predicts that revenues generated by pay TV, mobile TV, DVD and broadband video are expected to exceed US $ 277 billion in 2010. The rapid growth of this number is mainly due to pay TV services, especially the rapidly expanding IPTV TV field in the world in recent years.
It is precisely because of the huge potential value and commercial space of IPTV that various developed countries are chasing IPTV one after another, hoping to occupy a favorable position from the development of IPTV. Judging from the situation in the United States, as early as September 2005, New York-based Verizon first announced the launch of IPTV service in Keller, Texas, and then gradually expanded to other cities in Texas and nearby Florida. This service for Fios can provide 180 digital and music channels at a cost of $ 39.95 per month. Among them, more than 20 channels are high-definition televisions; at the same time, 1800 videos can be provided for on-demand. Content providers are established TV entertainment groups like ShowTImeNetworks, NBCUniversal Cable and A & E. The Atlanta-based SBC also plans to invest US $ 4 billion in the development of IPTV in the first quarter of this year, aiming to reach 18 million subscribers in 2007.
In addition, in South Korea, Korean telecommunications companies have also been at the forefront in the development of IPTV. At present, the main development of IPTV services in South Korea are South Korea Telecom and Hanato Telecom. Hanaro ’s HanaTV has 800,000, and South Korea ’s MegaTV business has been in operation since 2007. Since its launch in July, 148,000 households have been developed by the end of September of that year. Daum Communications, South Korea's second-largest web portal, also announced its entry into the IPTV market in early 2008. From the second quarter of 2008, Daum will officially provide IPTV services. With the current number of Daum users and Hanato Telecom ’s newly developed users unknown this year, the number of South Korean IPTV users has exceeded 1.5 million, and it is estimated that it has already exceeded 2 million, approaching 3 million.
In China, IPTV has also taken advantage of the Olympic development opportunities, especially in southern China. At present, Shanghai Telecom, the strategic market center of Shanghai Media Group, has a total of 560,000 users in August. Jiangsu Province officially deployed IPTV services this year, which attracted 150,000 users in just 8 months. Moreover, a mature partnership model has been formed between China Telecom and Shanghai Media in the past two years, which will continue to promote the steady growth of the number of IPTV users. In addition, China Telecom just completed a joint procurement bid for 50,000 IPTV set-top boxes and related network equipment in August. The joint procurement process between telecom operators will help reduce the overall price of IPTV network equipment and set-top boxes. This should convince market participants that IPTV will play an important role in China Telecom's progress towards the goal of being an integrated information provider.
IPTV and China's Opportunities Although IPTV is developing rapidly in the world and showing good business application prospects, IPTV is also mainly a "big player game" due to the huge funds required for channel investment and industry startup. Take South Korea as an example, there are many companies dedicated to broadband TV in South Korea, such as LG. However, due to lack of legal basis, they have been banned from real-time broadcasting for a long time and can only carry out video-on-demand services. The reason why IPTV has been delayed for three years in South Korea is because it is difficult to coordinate the interests of all parties, including the interests of service companies, the interests of traditional TV channels, and the interests of program production companies.
The cake of IPTV has just begun to bake, and the problem of profit distribution is already in sight. Similar reasons existed before in China. The attribution of IPTV jurisdiction before 2008 was an important factor affecting investors' entry. In China, telecommunications and television are under the jurisdiction of the Ministry of Information Industry and the State Administration of Radio, Film and Television. Since 1999, the government has explicitly banned the mutual penetration of the two major industries of broadcasting, television and telecommunications, and the policy is still in effect. For telecommunications to enter TV, it must be approved by the State Administration of Radio, Film and Television. The offensive and defensive battle staged between the Telecom and the State Administration of Radio, Film and Television has not been interrupted since the inception of IPTV. Due to the long-term failure to enter a period of high-speed development, it is difficult for equipment manufacturers who were originally enthusiastic about IPTV to get a return. Separate local broadcasting systems have undoubtedly become a major obstacle to the promotion of IPTV.
On December 1, 2005, Shanda Interactive Entertainment Co., Ltd. also tried to launch "Sandbox", which connects broadband and TV sets, allowing hundreds of thousands of people to play online games on the TV screen at the same time, browse news, download music movies and TV shows, watch TV programs, even communication, education and business functions. As of February 8 this year, Shanda had obtained about 179,000 sets of pre-orders through its own channels. The grand killing was supported by China Telecom and China Netcom.
However, Shanda's plan was quickly frustrated. On April 11, China Telecom and China Netcom received a letter from the State Administration of Radio, Film and Television, saying that electronic devices connected to televisions that can play Internet content, such as "Shangda Entertainment", appeared in the market recently. Do not provide network support to the violating enterprises. Finally, on April 18th, Shanda announced that it would abandon the "box plan" built by huge investment.
Just as many companies believe that China's IPTV will continue to stand still, the arrival of the Olympics has changed all this. In order to allow more people to enjoy digital TV and other digital TV media during the Olympics this year, in January 2008, the State Council issued the "Notice on Several Policies Encouraging the Development of the Digital TV Industry", which clearly stated that from February 1 this year, The state encourages radio and television institutions to use digital public information networks and radio and television networks to provide digital television services and value-added telecommunications services. At the same time, on the premise of complying with the state's relevant investment and financing policies, it supports state-owned capital, including state-owned telecommunications companies, and participates in the construction of digital TV access networks and the digital transformation of TV receivers.
According to this policy, the problem of radio and television funds that are far weaker than telecommunications will be compensated for, increasing the possibility of financing policies, such as going public or complementing with existing telecommunications companies. After the completion of the domestic telecommunications reorganization, the clear sector and market competition will also gradually clear the controversial IPTV profit model. Although the number of users of IPTV is still not comparable to that of its rival digital TV, after the policy is clear, with the global new media revolution, IPTV will surely become a new trend and trend.
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