CCID Consulting has issued a report today covering the development of IPTV in China in 2006 and forecasts outlook of the industry.
In 2006, the development of IPTV in China was encouraging: Despite various guesses, the issuance of license gradually became clearer. In addition to SMG, CCTV International, Southern Media Corporation and CRI also got their licenses. The number of pilot cities gradually increased. Branches of China Telecom and China Netcom carried out equipment tests, invited bids for network building and engaged in business cooperation negotiations. Number of users were growing in a considerable pace in Hangzhou, Harbin and Shanghai. In Fuzhou, Heihe, Mudanjiang and Changchun, IPTV started to enter commercial use. In Hangzhou, Shanghai and Harbin, various business models were developed for IPTV. Many innovative measures accumulated rich experiences for the success of the business models. Thanks to its network interconnectivity and content compatibility, IPTV now enjoys a growing reputation and is also more appealing to consumers. Though IPTV still faced policy, network, standard and contents problems in its development in 2006, the current situation for IPTV nevertheless remains positive in its future prospects.
CCID Consulting's statistics show that by December 31, 2006, the number of IPTV users in China reached 550,000, and was still growing fast. Table 1 Distribution of IPTV User Numbers in China (Unit: 10,000)
Source: CCID Consulting, Jan. 07
Table 2 Forecast for Size and Growth of China's IPTV Market
Source: CCID Consulting