Slow market for IPTV operators in China

Analysts’ research indicates that the main reason for the slowdown in IPTV deployment is that the industry as a whole failed to develop a successful business model capable of being replicated in geographically dispersed urban centres.

The survey data does not include China's semi-autonomous city of Hong Kong, which already has one of the world's highest rates of IPTV adoption, which is estimated to be in the region of one million subscribers.

China's government has licensed four IPTV operators, but only Shanghai Media Group is thought to be actively deploying an IPTV service. The government has not issued any IPTV licences direct to telecoms operators, who control the infrastructure over which programs are distributed.

In China, IPTV services are jointly operated by telecom carriers and IPTV broadcasters. They partner to share their respective advantages. It has been suggested that this requirement for co-operation between telecoms and broadcast companies may be hindering the growth of IPTV.

Telecom carriers provide access equipment, the service platform and the broadband network. Broadcast operators have the IPTV licences and contribute television programs and other video content resources.

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