With the increasing popularity of a digitalized, networked and
intelligentized lifestyle, and the implementation of a package of
policies in stimulating domestic demand such as Home Appliances Going to
the Countryside and Home Appliances Replacement, China's digital home
industry has seen rapid development towards tri-network integration.
Preliminary results have been achieved in industrial transformation and
structural adjustment, and great progress has been made in the
application innovation of digital home services featuring tri-network
integration and represented by interactive entertainment, smart home and
I. Industrial Scale
The development of China's DTV industry in 2011 was mainly represented
by cable DTV and IPTV, whereas terrestrial and satellite DTV experienced
little growth. In 2011, the scale of China's DTV industry reached RMB
279.40 billion, with a year-on-year growth of 19.9%.
Figure Scale and Growth of China's DTV Industry, 2007-2011
Source: CCID Consulting, October 2012
II. Major Characteristics
1. The industry chain of digital home has taken shape.
The industry chain of digital home mainly consists of manufacturers of
chips, operating systems and other core components, complete-system
vendors, Internet content providers (ICPs), network operators and end
At the end of the chain are household users. Complete-system vendors and
network operators (cable television operators and telecom operators)
interact with end users by selling final products and providing them
together with services, and they are the center of product function and
business model innovations. ICPs provide content support for network
operators or complete-system vendors, and gain its revenues from profit
sharing. Core component manufacturers serve as the basis of technical
innovation in the entire industry chain.
2. Home entertainment solutions become the widest application.
Currently, as an overall service, digital home solutions have not been
widely applied in real life, especially in China. China’s digital home
application focuses mostly on the interconnection and intercommunication
of two or three kinds of information terminals, and the most widely-used
application is the home entertainment solutions and products.
The next few years will be an important period for improving the
interactive cooperation between key enterprises and SMEs in terms of
digital home. The industry chain will further complete itself;
cooperation among network operators, ICPs, system integrators and other
institutions will be strengthened; and the whole industry will pay more
attention to the R&D and promotion of the new digital home system which
features the combination of tri-network integration, high-definition
interaction and intelligent control.
1. Digital entertainment is the starting point in the development of
In the next few years, the demand for home entertainment and the
improvement of various solutions will drive the development of the whole
digital home industry. The development of digital home products will
have a great impact on the evolution of technologies. Meanwhile, digital
home technologies will become high-definite, wireless and energy-saving.
According to the survey of CCID Consulting, among the various
applications of digital home, consumers' tend to accept digital
entertainment rather than smart home.
2. Cable DTV enterprises will have access to more investment.
Over the next few years, the number of cable TV subscribers is expected
to exceed 200 million in China, which presents great development
potentials for network operators, ICPs as well as software and hardware
equipment suppliers, and is bound to attract more investment. In
addition, under the macro policy of expanding domestic demand, each DTV
operator will have great opportunities to obtain financial support from
the local governments and policy support of network integration, so as
to accelerate digitization and bolster local consumption. Enjoying
favorable policies, stable profit models, low debt ratios, sound
operational cash flows, diversified financing channels, lack of
industrial cyclical variation and other advantages, the DTV industry
will gain more funds for its development.
About CCID Consulting Co., Ltd.
CCID Consulting Co., Ltd., the first Chinese consulting firm listed in
the Growth Enterprise Market (GEM) of the Stock Exchange of Hong Kong
(HKSE: 08235) and the first consulting firm which gets ISO 9001
international and national quality management system standard
certification, is directly affiliated to China Center for Information
Industry Development (hereinafter known as CCID Group). Headquartered in
Beijing, CCID Consulting has so far set up branch offices in Shanghai,
Guangzhou, Shenzhen, Xi’an, Wuhan and Nanjing with over 300 professional
consultants. The company’s business scope has covered over 200 large and
medium-sized cities in China. CCID Consulting provides customers with
public policy establishment, industry competitiveness upgrade,
development strategy and planning, marketing strategy and research, HR
management, IT programming and management services, investment and
financing, and M&A. The company's customers range from government
departments at all levels and diversified industrial parks, to
industrial users in strategic emerging industries in new generation
information technology, energy saving and environmental protection,
biological science and technology, high-end equipment manufacturing, new
materials, and new energy. CCID Consulting commits itself to become the
No. 1 advisor for urban economy, the No.1 consultancy for enterprise
management, and the No. 1 branch for informatization consulting in China.