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CCID Consulting and the
first Chinese consulting firm, recently released its article on China’s IPTV market.
In 2008, with China Telecom’s vigorous promotion, China’s number of IPTV subscribers
grew rapidly, up 100% year-on-year. The rapid growth drove the development of IPTV’s
equipment market, and with the promotion of free and bundling marketing, subscribers
in Shanghai, Zhejiang, Fujian and Guangdong have taken shape. However, telecom operators
have found it difficult to gain profit in IPTV. In 2009, because of global financial
crisis, telecom operators’ capital and resource investment in IPTV promotion will
meet tests. How to guarantee the IPTV market’s sustainable development has become
the whole of the industrial focus for IPTV.

Policy environment is expected to greet further breakthroughs

In Jan. 2008, the Chinese government released policy to encourage digital TV industrial
development. However, because of the lack of subsequent detail decrees, measures and
bylaws, this policy has not made any great effect on recent IPTV development.

In 2009, the convergence of three networks will be maturing. This network convergence
will create favorable development opportunities, realize stable development for the
three networks, and solve standardization and market access. The related detail policies
will be released and the policy environment is expected to greet further breakthroughs.

Market operations transfer from extensive to refined marketing

In 2008, China Telecom’s efforts in IPTV drove all of IPTV’s market growth. Because
of Shanghai Telecom’s free promotion, its number of subscribers saw rapid growth.
By the end of 2008, the number of IPTV subscribers reached 700,000. Zhejiang, Fujian,
Jiangsu and Guangdong have similar promotion modes as Shanghai Telecom. Telecom operators’
promotions stay at the free and low price promotion stage. User consumption behavior
and habits acquired by researches will be helpful to telecom operators in understanding
users’ requirements and expectations in order to carry out different marketing. IPTV
will enter an era of refined marketing.

Business presents further differential advantage

In 2008, Olympic opportunities provided a display platform for IPTV development. User
recognition of IPTV services was improved. In 2009, the continued increase in subscribers
will attract more content and service providers to enter the IPTV field. Based on
IPTV’s particular order program and replay functions, they develop typical music,
movie, game and public services. The competition between IPTV and DTV will focus on
differences in product content and functions.

Industry application tends to in-depth development

China’s IPTV subscriber number hasn’t realized blow-out growth in the short-term.
Equipment manufacturers will strengthen their investment in IPTV system equipment
R&D. Based on IPTV’s business functions, they will develop more application functions
for industrial users, such as UTStarcom, ZTE and Huawei. UTStarcom will transfer its
attentions to the video monitor market. ZTE will launch a network video system, which
integrates video monitoring, conference TV living broadcasting, video communications
and advertising, and provides sufficient services for family users, SMEs and industry
clients. ZTE provides video monitoring for enterprise users in Jiangsu. In 2009, IPTV’s
industrial applications will expand their scope. IPTV industrial applications should
be considered as breakthroughs, accelerating regional layout so as to drive the local
public user market’s growth.

View post:
Forecast of China’s IPTV Market

The
IPTV and switched digital video equipment market increased 6% sequentially in 3Q08
to $1.4 billion, reports market research firm Infonetics
Research. In its latest report, IPTV and Switched Digital Video Equipment, Services,
and Subscribers, Infonetics lowered its long-term IPTV and SDV forecast due to an
expected slowdown in IPTV subscriber growth and a decrease in cable operators moving
to switched digital video. Annual overall growth will continue in the worldwide market
through the downturn, but will grow in double-digit percentages rather than high triple-digit
percentages, as it has in previous years.

Other highlights from the report:

• In 3Q08, IP set-top boxes account for 70% of the total IPTV and SDV equipment revenue
• IPTV middleware (content delivery platform) sales are up 21% in 3Q08, and video content
  protection software sales are up 14%
• In 3Q08, Motorola continues to lead the lucrative IP STB market, although Cisco increased
  its market share 6 points, putting them in a very close second
• In Asia Pacific, the IP STB market is hotly contested by Samsung, Motorola, Sumitomo,
  Cisco, and UTStarcom
• Harmonic maintains a strong lead in the worldwide IP video encoder market, leading
  all segments, including MPEG-2, and standard definition (SD) and high definition (HD)
  MPEG-4 encoders
• The competitive operator Iliad Group of France leads in the number of IPTV subscribers,
  with 3 million in 3Q08
• North America is the leading region for total IPTV and SDV revenue due to the fierce
  rivalry between telcos and cable operators, but Europe’s developed economy supports
  keeps it in a close 2nd

Infonetics’ report tracks 2 Wire, ADB, Alcatel-Lucent, Amino, Celrun, Cisco, Dasan
Networks, Envivio, Ericsson (Tandberg), Harmonic, Microsoft, Motorola, Netgem, Nokia
Siemens, OptiBase, Sagem, Samsung, Sumitomo, Telsey, Thomson, Tilgin, UTStarcom, Yuxing,
and others.

The report provides market size, market share, and forecasts for telco IPTV and cable
IPTV and SDV equipment, including pure and hybrid IP STBs, integrated digital headend
platforms, VOD and streaming content servers, IP video encoders, IPTV middleware and
content delivery platforms, video content protection software, and universal edge
QAMs. The report also tracks pure IPTV, hybrid IPTV/over-the-air, hybrid IPTV/QAM,
and cable SDV services and subscribers.

The rest is here:
Report: Cisco on Motorola’s heels in IP STB Market; 3Q IPTV/SDV Equipment Up 6%

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About One Million Users to Patronize AT&T IPTV

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About One Million Users to Patronize AT&T IPTV