The case against IPTV's success in China

While recent studies have estimated China's IPTV market to scoop up 25 million cable TV customers and generate $1.9 billion in revenue by 2008, some industry pundits paint a far less rosy picture and have a strong case:

  • The IP backbone, video headend and access networks required for IPTV are expensive, leading to a monthly subscriber fee three times that of cable's expected prices in China.
  • Advertisers will be unwilling to pay if the subscriber base is small, some say it will be closer to 7 or 8 million instead of 25 million subscribers by 2008.
  • The government seems to favor digital TV and cable TV, according to insiders.
  • Only two IPTV licenses have been granted so far in the country, which has slowed down the technology's deployment.

For more on China's IPTV landscape, including a brief history of it:
- see this lengthy article in Telecom Magazine

Suggested Articles

Given the accelerating rate at which consumers are going online for entertainment, Roku said that streaming TV viewers could surpass the amount of pay TV…

Comcast already licenses a white-label version of its X1 video platform to other providers like Cox, and that could soon be the case for the company’s Xfinity…

When Comcast earlier this year launched its new Xfinity Flex product, it carried a $5-per-month cost for broadband-only subscribers. Now the company is giving…