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IPTV finds favorable market in China

Posted: 22 Jan 2007 ?? ?Print Version ?Bookmark and Share

Keywords:ABI Research? IPTV? broadband? Internet? TV?

China will be a favorable market landscape for IPTV as the country's upcoming major events and flourishing broadband environment pave the way for IPTV adoption to reach over 23 million subscribers by 2012, according to ABI Research.

IPTV is the Chinese government's platform of choice, reported ABI Research, because it is aligned to the country's long-term plan of unifying broadband, Internet and TV services. This makes for an optimistic outlook for IPTV. In addition, more resources will be allocated for IPTV given its important role in multimedia communications and upcoming major events in China.

According to ABI Research's broadband research analyst Serene Fong, the growth of IPTV will remain modest for now, and take off only after 2008. "Adoption will be boosted by major events such as the Beijing Olympics in 2008, and then the 2010 World Expo in Shanghai," Fong said.

"More operators than ever are offering multiple services in an attempt to retain customers and to increase revenue. Telecom operators are venturing into the TV industry, while cable operators move into the voice business," added Fong.

For now, however, IPTV must cope with certain bottlenecks that have been restricting its growth. "While the IPTV service is regarded by the industry as a potential revenue generator, lack of content may prove a short-term barrier to increasing uptake rapidly," said Fong. "Current program content, which is strictly controlled by media authorities and the government, is not rich enough to attract paying users, and overseas content, which is restricted and difficult to get approval for, does not help alleviate the situation."

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