China IPTV Growth Falls Short of Forecasts
Disappointing sellers and experts alike, the IPTV market in China has failed to capture the imagination of the public as was expected at the start of 2007, according to industry analysis firm iSuppli.
A year ago, Chinese operators predicted 1.3 million mainland IPTV (News - Alert) subscribers by the end of 2007, TechwebNews.com reported Friday. But the actual numbers are in now and they fell short of the forecast.
The report cited figures from iSuppli that the year will end with only 846,000 IPTV subscribers in China. iSuppli said uncertainty in the IPTV market and the slow growth could discourage future investments and hamper the process of technology.
In China, TechwebNews.com said in its report, broadcast operators supply TV and video content by obtaining licenses; telecom carriers own and run the broadband networks needed to deliver IPTV. This new form of TV delivery got its China start in 2006, led by Shanghai Media Group, China Telecom (News - Alert), and China Netcom.
“The main reason for the IPTV deployment slowdown is the industry as a whole failed to develop a successful business model - one capable of being replicated in geographically dispersed urban centers,” iSuppli analyst Loren Zhao was quoted a saying in the TechwebNews.com report.
Initial enthusiasm toward IPTV came mainly from the suppliers rather than the end users, TechwebNews.com said in its report. Shanghai Media Group planned to expand IPTV services in 10 cities and it even got the approval of State Administration of Radio, Film, and Television to do so.
But, as people showed no interest in this new technology, the enthusiasm is slowly making way for disappointment. Currently, Shanghai Media Group is the only operator in China deploying IPTV. China Central Television International (CCTV) is planning for field tests in three provinces.
Tags: CCTV, China-Netcom, China-Telecom, IPTV