Competitive Strategy of Cable TV Operators under Digital Convergence
Date Issued
2007
Date
2007
Author(s)
Chao, Tien-Chia
DOI
zh-TW
Abstract
Worldwide cable TV industries in developed countries, as a result of introducing new digital and broadband technologies, have kept the leading position among new media platforms. However, the Taiwanese government has passed laws which give the telecom industry opportunities to enter the TV industry by transmitting video images through Internet. Hence, Taiwan’s cable TV industry is facing challenges from IPTV (MOD), while consumers benefit from multi-channels and multi-platforms. Nowadays, cable TV companies provide “Triple Play” service to compete with other media. This research will discuss whether IPTV and digital terrestrial TV will substitute digital cable TV or not and if so, what are cable TV operators’.
After the horizontal and vertical integration of the cable TV industry, some big companies, such as Multiple System Operators (MSOs), control this industry very well. Also the MSOs have upgraded the infrastructure at a high speed. For example, at this moment, for the coming of the digital TV era and TV-commerce, MSOs are burning money on building the digital head-end and upgrading cable systems to 750 MHz hybrid fiber coaxial cable, so called HFC. Now, cable TV companies are more active in providing and developing high quality shows, interactive services, and TV-commerce. However, in view of current issues about digital TV, cable TV companies should consider developing their core competence when facing competition from other media.
Therefore, this thesis using the theoretical frameworks, such as Porter’s “Five Force theory” and “Value Net” concept from ”Brandenburger & Nalebuff’s “Co-opetition”, to analyze the cable TV industry development, with a particular focus on digital technology.. Although the analysis shows a great potential for Taiwan’s cable TV companies to expand into digital cable TV, there are problems and challenges which need to be solved. In this research, I suggest some competitive strategies illustrated by other cable TV companies in US, Korea, etc.
As the cable TV industry has stepped toward conglomeration and diversification recently; consumption behaviors and service contents have become the main issues to develop digital cable TV. Accordingly, the results of the study not only find cable TV companies’ core competence leading to the “differentiation” strategy, but also consider the effects of less control and greater rewards from the government. With high quality and differentiated “Triple play” service, consumers will be attracted and impressed by it. Thus, I believe digital cable TV will be the focus for the next digital era.
Subjects
有線電視
數位化
數位有線電視
有線電視系統業者
數位匯流
Cable TV
Digital
Digital TV
MSO
Triple play
Type
thesis
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