Nowadays, TV is developing towards the entrance of home smart terminals integrating functions of film and television, games, shopping, and communications. Among them, video has become an important starting point for stimulating multi-screen interaction and stimulating data flow. Right now, the entrance to the TV screen is still at the stage of competition and is pregnant with huge market opportunities. The Department of Broadcasting and Television, with its policies and licenses as “order arrows,†is exerting pressure on telecom operators and Internet companies.
The Department of Local Broadcasting and Television Accelerated the Deployment of Internet Business In 2015, the long-delayed three-network convergence market continued to make new progress. Local radio and television enterprises are accelerating the deployment of triple-play networks and cross-border Internet services. On February 28th, Chongqing Cable revealed that recently, the Ministry of Industry and Information Technology of the People's Republic of China has approved the Chongqing cable “triple play†business license application, and agreed that Chongqing Cable’s Internet access service based on cable TV network and Internet data transmission added value. Business, as well as domestic IP telephony services; and in the last month, Guizhou Radio and Television Network Corporation, Radio and TV network, Hubei Broadcasting and Television have also issued similar announcements. Previously, Tianwei Video, E-Media, and Gehua Cable have been allowed to launch Internet access and Internet data transmission services in 2012.
Radio and television companies frequently applied for and received the qualifications of the Internet-related businesses issued by the Ministry of Industry and Information Technology, which became a footnote to the promotion of triple play by the Broadcasting Department. All indications are that the radio and television department is stepping up its efforts to deploy the three-network convergence market, where Internet companies and telecom operators took the initiative.
On the one hand, starting with policies, licenses, etc., tightening control over the Internet TV market. Recently, SARFT has continued to emphasize compliance with Document 181 to the market, and has massively reorganized boxes and Internet TV products. Analysts pointed out that at present, many companies that intend to use their power in the Internet TV industry are subject to license incompatibility, and their right to speak in the Internet TV field is limited. The power of the seven major licensees who master Internet TV "tokens" has increased significantly.
On the other hand, cross-border integration within and across industries is increasing. Experts said that the competitive landscape of the seven licensees is now entering a deep-water zone. It is no longer just a superficial way of playing around televisions, circled boxes, and syndicated content. At present, there are three modes. First, the group army combat model, with BesTV as the most, through the reorganization of BesTV and Oriental Pearl, two listed companies, and then offering five major business groups, 1 +6 of a cloud and six channels of the entire media layout; the second is the depth of interaction with TV stations, such as , Relying on Hunan TV's high-quality entertainment copyright resources supported by Mango TV; the third model, that is, an integrated model of joint ventures and cooperation with external resources.
The entry dispute extends to the home market
In recent years, Internet OTT boxes have become popular and threats to telecom operators and broadcasters. Although Internet giants such as BAT have intentionally controlled the entrance of TV screens through the establishment of industry alliances, the absolute monopoly pattern has not yet been established in this field. Telecom operators, traditional broadcasting and TV giants with content advantages, terminal manufacturers, and Xiaomi, LeTV, etc. The company became the four major forces in the market. With the upgrading of the network infrastructure, the step-by-step layout of the industry, and the government’s tightening of regulatory standards from the perspective of information security and content security, the market’s winning and losing hands are being reversed.
The Industrial Securities report pointed out that wired network companies have certain advantages in network access. First, the two-way network development of cable network companies has reached a certain scale. Second, China's cable TV users are large and digitalized. Third, as a traditional business of cable network companies, video services have certain advantages in the management of content resources and content operations (telecom operators have not been allowed to directly develop video content services), and have a significant viscosity to users. The channel resources available to cable companies are also difficult for traditional internet companies to have.
The huge user scale and high-speed broadband infrastructure are the biggest advantages for telecom operators. With the advantage of the big data platform, operators can obtain user behavior through network connections, and then provide more user-friendly services on Internet TV.
Previously, operators combined IPTV and broadband services to provide support for high ARUP broadband services. As of January 2014, the number of domestic IPTV subscribers has reached 30 million. However, in the face of innovation in OTT boxes, IPTV obviously cannot meet user needs. Today, China Telecom has launched the "Yue Me" smart home solution, China Mobile has released the "and family" business, China Unicom has created a "wisdom wisdom home", have loaded game, water and electricity payment and other service content.
Video Enhances the Value of Broadband Realization in the 4G Era
The main guiding targets of the "Broadband China" 2015 special action announced by the Ministry of Industry and Information Technology (MIIT) recently announced that broadband network capabilities and network speed will rise. The new fiber-to-the-home coverage of 80 million households, the new 4G base station over 600,000, 4G network coverage of the county and developed towns. With the broadband network speed upgrade, operators have become more prominent in the pipeline crisis in mobile communications and broadband.
It is worth noting that with the clearing of the 4G network of the three major operators, distribution of spectrum around or into the next competition point. In particular, with the accelerated integration of radio and television in the market, 700 MHz of high-quality spectrum resources have become the killer of competition in the 4G era.
The Cisco VNI global mobile data traffic forecast report predicts that global mobile data traffic will reach 292 EB by 2019, which is a significant increase from the 30 EB in 2014. In 2014, 88% of global mobile data traffic was “smart†traffic. Most of the devices that generate these traffic have advanced computing/multimedia capabilities and minimum support for 3G connectivity. However, by 2019, this figure is expected to climb to 97%. With high-speed network and multi-screen interactive requirements, high-definition video is becoming a new opportunity for operators to crack the pipeline crisis. Huawei's digital business product line VP, Tang Xiaoguang, general manager of the digital home area, said that the organic integration of OTT TV and IPTV will be an important means for operators to increase user service experience, enhance competitiveness, and monetize traffic.
For operators, in cross-border competition and cooperation, the first is to build an ecosystem that includes a large number of application vendors. The second is to increase investment in video content and strengthen cooperation with licensees to obtain high quality television content resources. Third, in the era of the Internet of Things, providing comprehensive information services including video and payment based on high-speed broadband is the focus of operators' differentiated competition, and it also lays a foundation for the subsequent deployment of more smart home services.
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