China's IPTV market set to explode

MUMBAI: Market research group Analysys International has predicted that Internet Protocol Television (IPTV) will become the next global industry, with a potential market of 200 billion RMB.

The China IPTV market will mature into a huge market, reaching 16.7 billion RMB in revenue and 16.65 million in the predicted number of users by 2009. The firm has released a study Focus Report on IPTV China-2005. It says that the information contained in the report helps dispel misconceptions that this industry that is full of obstacles and provides high-valued results for business models based on a thorough understanding of the industry.

The report notes that IPTV features the combination of advantages and characteristics of telecommunications, television and the Internet. Its development signifies a great revolution, moving away from the traditional networks and TV industries by achieving real interaction. However, the early stages of market cultivation posed many threats and risks while the potential for business opportunities has attracted many players.

The study further notes that uncertainty of regulations, insufficient hardware platforms, long-term obstacles of an immature value chain and unclear business models are the main concerns of key players. But despite all these obstacles, users of IPTV in China will reach 1.17 million by the end of 2005; 2007 will be a year strong growth year for IPTV users and finally the growth rate will slow down, reaching 16.65 million users by the end of 2009.

The report gives the example of Internet game provider Shanda who had shown its ambition to become a leading provider of IPTV to Chinese homes with its own DVB (set-top box) attracted a great deal of attention recently. Analysys International in the report has also provided advice on tactics such as payment methods, monthly fees and content preference for key players like Shanda.

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