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CNTV to Expand IPTV Nationwide in 2012

21st Century Business Herald, 9/20/11

Wang Wenbin, general manager of CCTV's national online TV station CNTV, has divulged that IPTV services, which to date have not yet reached 10 mln IPTV subscribers, will expand nationwide in 2012. CNTV plans to establish joint venture IPTV operators similar to Yunnan Love-IT Network, a joint venture launched in October 2009 by CNTV and Yunnan TV, across the country over the next three years, expanding the number of subscribers to over 20 mln.

Unlike Shanghai Media Group IPTV subsidiary Shanghai BesTV, which has partnered with local telecom operators for IPTV operations in Shanghai, Jiangsu, and Guangdong, CNTV also forms a joint venture with local TV stations or broadcasting authorities to ensure that they also benefit, with CNTV as the controlling shareholder, to cooperate with local telecom operators.

Industry sources speculate that the Yunnan model may not be "one-size-fits-all" as cable TV operators vary in strength from region to region. Cable TV operators such as Beijing-based Gehua CATV Network (600037.SH), which have capital resources and have had success with HD bi-directional cable DTV conversion, will be stronger competitors against IPTV. Yunnan Love-IT Network has had significant difficulties penetrating Kunming, the capital city. The local cable TV operator, Kunming Broadcasting Television Network, accounts for one-third of the province's cable TV revenue and subscribers, and nearly half of cable TV profits in the province. Yunnan Love-IT Network's IPTV users, as a result, are concentrated in peripheral cities such as Dali and Honghe.

A source at Shenzhen Telecom said that the local telecom operator receives a 50-60% revenue share from its IPTV partnership with BesTV, but would only receive a 30% share from a partnership with CNTV.

Keywords: Wang Wenbin bi-directional IPTV conversion telecom television Gehua Kunming Broadcasting Television Network DTV cable TV CCTV BesTV revenue share 600037.SH Yunnan TV Yunnan Love-IT CNTV IPTV subscribers HDTV JV

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