Lack Of Planning For Digital Tv Industry Into A Difficult Earnings Embarrassing – Digital Television

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Simple set-top box implementation dependent number of Chinese
TV
Although the conversion process fast, so far neither the satisfaction of consumers, in fact, not to the operating companies has brought substantial benefits. Analysys International recently released “Prediction of China’s DTV market,” data show that, despite the cable digital TV users this year will reach 63.5 million, but launch interactive TV services, enjoy the value-added services to customers or even less than 1%.

Early as the end of September CCTV
Guangdong
Satellite TV, etc. 9
Home Appliances
After the opening of high-definition TV station Channel, thought digital TV industry will welcome the opportunity. But so far include prefecture-level cities, including Guangzhou and can not complete the ratings, the high price of high-definition set-top box is
Sell
Freeze. Analysts said the operation of digital television requires a great investment in itself, but simple pre-paid set-top boxes and the lack of good operational planning, making business difficult for operators to develop value-added even more difficult. This profit model, the lack of recovery of capital and difficulties, will make a follow-up cable network operators continue to fall into a vicious cycle difficult to profit.

Analysys International, “Prediction of China’s DTV market,” the disclosure of information, cut-off in Q2 this year, digital TV users in China reached 53.7 million total, but the overall number of conversions 4th quarter of last year decreased by about 30%, indicating the overall transformation has been slowdown. One way the user only 21.7% coverage, the proportion of two-way set-top box access to the user as little as less than 1%. Show that the domestic value-added services covering the user less, cable operators, lack of profitability. Analysys International analyst Ruixiang quoted digital TV business to carry out relatively well-developed
Shenzhen
Area, covering the 2008 two-way interactive user only 4% of its overall customers, which is only 30% of users open an interactive television business.

Ruixiang of said pre-translation is a simple digital TV digital TV users caused the current indifference of the main reasons the market to operators as the main driving force of digital television as a whole translation, more is to be regarded as performance engineering, seriously out of line with the market, consumers in this process has not been radically improve the user experience, in advance for translation operators invested a lot of money though, has not been profitable, and difficult the recovery of funds, which also makes the operation is not converting business had to watch, while the urban area to complete translation to the urban fringe or rural areas in advance of the process, the problems caused by the implementation of force policies and outstanding landing financing difficulties making slow progress, making China’s digital cable TV industry slowdown.

Analysys International said in the report, integrated digital TV industry chain of China’s current network construction, cable network operators, carriers, terminals, and four of capital investment, China Digital TV Industry in China is not optimistic.

First, the network construction, the area is still not completed more than half of network integration, which will greatly affect the cable network resource optimization, the prospects for its launch value-added business obstacles. Decentralized network operators around the network management and business development areas do not have the scale advantages, will delay the digital cable TV industry to explore business models for success.

Second, the domestic cable operators a serious shortage of revenue model. On the whole, most of the current domestic carriers still offering free channels mainly traditional business, and other operating income less. To Beijing Gehua, for example, information on business income in 2008 19.3% of total revenue, including cable broadband business income, and other value-added services such as digital TV premium channels, VOD and other business income less. From digital TV operators a better view, such as Shenzhen, Hangzhou and in spite of many value-added services, but interactive TV package price partial expensive, high-definition premium channels business interaction and the relatively high threshold, the real killer form of value-added business also no.

Again, set-top terminals are not unified on the digital TV operators to carry out value added business obstacles. The simple digital TV before the translation, there are more than 50 million set-top terminal over, do not have two-way operational capacity. Especially around the cable network, set-top boxes distributed release, brand model fragmentation, between the complexity of hardware and software solutions, resulting in distribution network operators have been set-top box control ineffective.

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