Establishing an IPTV
Industry Chain in 2006
Other Topics: Enterprise IPTV
Solutions, IPTV Dual Tuner SD-DVR
BUSINESS WIRE
January 10, 2006
Dublin, Ireland --
Research and Markets has announced the addition of Internet
VAS--Focus Report on IPTV 2005 to their offering.
This report is based on our solid understanding of the Chinese
telecommunication and media markets, with a focus on telecom and
VAS. There are combined in-depth interviews with professionals in
relevant industries with our broad collection of second-hand
materials.
With the rapid growth of the broadband market, user demand for video
services experienced rapid growth. Based on their core competencies,
telecom operators, media players and various kinds of institutions
with solid industry background have entered the IPTV market and
begun small-scale promotion. However, strict regulations on content
resources in the media industry and rampant piracy of domestic
content make it difficult to predict the nature of the IPTV market.
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The questions explored in this report are:
How to create innovative business models that meet customer demands?
How to create demand for unique IPTV applications? Those problems
pose significant challenges for the whole IPTV industry chain.
Based on our insight into the media industry chain and its holistic
understanding of the market situation, we conducted a deep analysis
of the media and IPTV industry chain. Using this analysis, there is
a developed prospective forecasts and provide suggestions for IPTV
industry development and accompanying commercial opportunities.
This report looks into the current situation and development trends
of IPTV and answer the following questions:
- Industry environment: What are
the drivers and inhibitors of IPTV?
- Competing technologies: Which is
better, IPTV or traditional TV?
- Business model: How to make
money?
- Market size: What size can the
market reach?
Findings
- Industry environment
- IPTV market still is in infancy,
with poor user's awareness.
While establishing an IPTV industry
chain, many efforts must be made to introduce concepts, set up
standards and cultivate market demands. This phase will last until
2006.
- In the short term, key problems
are policy uncertainties and imperfect hardware platforms, whereas
in the long term, the main inhibitors are an immature industry
chain and unclear business models.
- Marketing promotion for IPTV
industry is still immature. The main activities are the promotions
of telecom operators, equipment vendors and content providers in
the main segments of the industry
- Due to slow progress of Digital
TV in China, IPTV industry can develop with fairly wide window of
opportunity. In the next 3-5 years, it is predicted that IPTV will
face intense competition from traditional analog TV. With the
progress of Digital TV and the demise of analog TV, IPTV will have
to confront challenges brought by Digital-TV, but those two
industries will compliment each other rather than compete for the
same market
- The increase of distribution
platforms creates more opportunities to content generation
segment. On the one hand, multi-platform distribution will
definitely lead to a shortage of content resources and add
bargaining power to content owners; On the other hand, there are
more chances for repeated use of content recourses, second-time
development and diversified VAS
- Channel operators, as integrated
platforms, bring new opportunity for the market, especially for
those firms with adequate capital but lack of content advantage
- Due to their own constraints on
systems, capital and operations, media operators will fail to
expand into the IPTV market effectively. Their position will
gradually weaken and they will lose their functions in a
fast-growing IPTV market.
Compared with media operators,
telecom operators have comparative advantages in a top-to-down
unified deployment throughout the country, sufficient capital and
modern management systems, which consolidate their decision-making
role in IPTV industry chain.
- In IPTV market, established
content providers will share the service provider's revenues by
granting distribution rights after the contents approved by
relative authorities, which will be weakened gradually with the
gradual opening of the media market.
Business model
- IPTV has the potential to change
the user experience significantly. The evolution from "passive
reception" to "Video on Demand" until "Real-time Interactive
experiences" represents a paradigm shift. However, considering
ingrained consumption habits, willingness to pay and economical
elements, it is predicted that traditional television programs
will continue to take a dominant market position, while VoD and
interactive television programs will gradually increase their
market shares.
- IPTV can help realize the
convergence between traditional media and Internet VASs. Content
from single television programs could be commercialized in online
gaming, online music, e-commerce etc.
- The key to innovative IPTV
business models lies in taking advantage of its interactive
characteristics. Utilizing features like time shifting and
terminal diversity could satisfy users personalized demand for
differentiated content.
- User base and market size
- Domestic IPTV users will reach
1.17 million in 2005. Rapid growth, however, will only take place
in and after 2007. In 2009, the market growth will slow down,
reaching 16.65 million users
- The expansion of IPTV market
size will yield a revenues increase, from 0.3 billion RMB in 2005
to 16.7 billion RMB in 2009. The content providing business will
be the main revenue.
Enterprise advertisement spending
on IPTV will increase to 6.7 billion in 2009.
For more information visit
http://www.researchandmarkets.com/reports/c24671 |
