A Study on the Evolution of OTT Technology and Its Impact on the Cable TV Industry in Taiwan
Date Issued
2016
Date
2016
Author(s)
Chang, Yi-Ru
Abstract
Thanks to OTT ((over-the-top)) technology, traditional television screens have lost their monopoly power on television content. At the same time, the evolution is changing our lives. This evolution calls for new kinds of services and has the potential to change the current television market. The future of cable industry in Taiwan attractsrouses our research interests. The purpose of this study is to provide an indepth better understanding of the recent OTT developments in the Taiwan and identify critical factors that may affect the future development of local cable TV industry, upon which our suggestions to cable TV operators would be based. television industry, and thereby give industry actors (( primarily cable TV operators)) feasible strategies for future investments under uncertainty. First, we study researched the history of television industry in the U.S. and Taiwan to unravelderstand the characteristics and development of inducstrial structure, including competition, demand, and regulatory factorsgovernment. In addition, this thesis appliesuses value chain analysis and six- force model to investigate the recent OTT developments’ influencesand their influences, consequences and strategic implications on the Taiwan television industry value chain in Taiwan. The results showed that the cable TV operators face ((1)) Studios and Production Companies with high bargaining power, ((2)) Buyers with higher bargaining power, ( 3) )Dominating IPTV/OTT TV competitors, and ((4)) Uncertainty of regulationlegislation.The aims of this study are to analyze the cabel television industry and to examine the future of television industry under the development of the OTT technique. This study focuses on the cable TV operators, and shows their feasible strategies under uncertainty. First, we researched the history of television industry in the U.S. and Taiwan to understand the characteristics and development of inducstrial structure. The analysis of television industry and OTT TV industry was based on three major factors, including competition, demand, and government. In addition, we applied the industry six force model to investigate the current situation of TV industry for the cable TV operators. The results showed that the cable TV operators face (1) Studios and Production Companies with high bargaining power, (2) Buyers with higher bargaining power, (3) Dominating IPTV/OTT TV competitors, and (4) Uncertainty of legislation. Based on the scenario analysis framework, we indentified the important uncertainties that influence the industrial development, which includes the relaxation of OTT related regulations and the investment of TV program suppliers for OTT services. Four scenarios were planned through the causal relationship of these uncertain factorsties. Facing these In each scenarios, we provided several suggestions for cable TV operators, such as bundled charges, subsidy for program suppliers, consolidationconsolidation of the relations with program suppliers, expansion construction, and improvement of service quality.
Subjects
Cable TV
Internet protocol TV
Scenario Analysis
Type
thesis