IPTV Subscriptions in China Fell below Expectation

Experts have revealed that, the IPTV subscriptions in China have fallen below the expectation in the just concluded year. Contrary to the prediction by Chinese operators that they were expecting about 1.3 million main land subscribers by the end of 2007, only about 846,000 people subscribed to the service.
This was made known by a research and consulting company, iSuppli through its spokesman, Loren Zhao, the industry analyst, China Research for iSuppli, he said that "The main reason for the IPTV deployment slowdown is the industry as a whole failed to develop a successful business model -- one capable of being replicated in
geographically dispersed urban centers"
He observed that uncertainty resulting from slower-than-expected rates of adoption could discourage investments needed for expansion. Not until recently, Chinese telecom carriers provide access, service platforms, and broadband network for IPTV, while broadcast operators have licenses and supply television and video content. The industry watched for signs of success or failure when Shanghai Media Group (SMG), China Telecom, and China Netcom took IPTV to Shanghai and Harbin in 2006.
Although, SMG planned to expand in 10 cities and the State Administration of Radio, Film, and Television approved the plans. Local operators did not effectively promote IPTV, so two provinces drew 130,000 subscribers, while other locations fared worse.
In the mean time, iSuppli advised that telecommunications and broadcast companies should form a mutual alliance with one another with the hope that it can lead to an effective business model which by the year 2011 could draw 17 million IPTV subscribers.