PRC Research on Cable Platform Shows IP Driven Growth in Domestic Demand

Digital Broadcasters Vendor News Asia (DBVNA) has learnt that latest IP research in the People's Republic of China (PRC) shows that demand for new TV services on its cable platform is driving increased replacement of standard definition (SD) "1-way set-top boxes" with high definition (HD) "cable+IP 2-way set-top boxes".
Authors of an upcoming report, IMS Research predicts that more than half of cable set-top boxes (STB's) produced for the Chinese PRC domestic market by the end of 2011 will be in HD as a result of government initiatives and increased competition with other platforms.
Recent directives by the Beijing Central Government for cable TV operators to converge voice and video networks has resulted in a boom for cable operators with the IP upgrades.
The IMS Research news release to Digital Broadcasters Vendor News Asia (DBVNA) stated that in some urban areas, 2-way cable networks utilize last mile IP and use cable set-top boxes with an IP back channel. In general, in major urban areas such as Shanghai and Beijing, cable operators compete with IPTV services where the current business model lacks HD content and high bandwidth, and it is hoped that greater availability of HD content and a “catch-up TV” mentality will encourage further digitization and customer retention. “Conversion of China’s cable infrastructure to 2-way, IP-based, HD-capable networks will occur gradually over many years,” emphasizes analyst IMS Research, Anna Maxbauer, co-author of an upcoming report: The World Market for Digital Set-top Boxes & iDTVs – 2010 Edition. Ms Maxbauer noted that the costs of infrastructure and equipment upgrades will likely fall to operators and the government. Why? Because: "most consumers are interested in new features but are unwilling to pay extra for them,” she says. DBVNA does not have a business connection nor paid by IMS Research, which is a UK-based research house and a consultancy for a wide range of global electronics markets with offices in Austin, Texas and Shanghai, China. The PRC research above was issued from IMS Research in Austin, Texas.