Abstract
There is a potentially huge subscriber base for IPTV in China. Analog TV is very popular in
Chinese households in downtown or rural areas. There were over 360 million TV users by the end of
2004, and over 100 million cable TV users. Almost every family has at least one set, and some city
households have shown the trend of two or three sets at one home. Additionally, there were over 20
million broadband users in China by the end of 2004, where ADSL accounted for about 70% of the pie.
Because the installed base of TVs is so much higher than that of PCs in China, IPTV services such
as TV Gaming and TV Education may help drive Chinese families toward widespread use of IPTV. An
additional finding indicates that the Olympic Games being held in China in 2008 may also contribute
to substantial growth in IPTV services during the forecast period. Although In-Stat feels that
growth will be minimal between 2005 and 2008 and that there are currently many barriers still to
overcome, there is evidence of substantial opportunity toward the end of the forecast.
This report assesses what IPTV means for China from the perspectives of Service Providers,
Internet Content Providers (ICPs), and end-users and discusses impacts of technology and policy.
Business models, market drivers and constraints (including piracy) are also discussed.
Forecasts include IPTV subscribers, and unit and revenue projections for Set Top Boxes (STBs).