Cable TV is increasingly overlooked as IPTV continues to grow stronger.
Cable television continues to lose popularity, with data showing that as of the end of June 2018, there were 234 million cable TV subscribers—representing a quarterly net decline of 5.031 million households, or a 2.11% drop compared to the previous quarter.
On the contrary, IPTV users continue to grow steadily. Driven by initiatives like faster internet speeds and reduced costs, as well as the expanding availability of fiber-optic broadband services, there’s been a significant boost in the adoption of integrated services such as home smart gateways, video calls, and IPTV itself. According to data released by the Ministry of Industry and Information Technology: As of the end of December 2018, the number of IPTV subscribers reached 155 million, representing a 27.1% increase compared to the end of the previous year. Over the course of the year, IPTV added a net 33.16 million subscribers, with these new IPTV users accounting for 44.6% of the total net growth in fiber-optic broadband subscribers. Meanwhile, the value delivered to users has also continued to rise—by 2018, IPTV revenue grew by 19.4% compared to the previous year.
Because cable TV services frequently undergo digital upgrades and mandatory system updates, monthly fees continue to rise steadily, driving up annual costs to nearly match those of broadband installation. Moreover, if you choose to watch on-demand content through cable TV, you’ll need to pay extra for each program. In contrast, telecom providers often offer free IPTV boxes when you sign up for broadband, providing users with a wide range of features like replay, time-shifted viewing, and on-demand access—all at no additional cost—thus perfectly catering to diverse user needs.
As cable TV services continue to shrink, radio and television broadcasters are shifting their focus toward developing fixed-line broadband infrastructure. In 2016, they officially obtained a telecom business license issued by the Ministry of Industry and Information Technology, marking the start of their entry into the broadband market. However, unlike operators who have adopted a unified, nationwide strategy, broadcasting companies remain fragmented—operating in silos and acting independently—making it difficult for them to compete effectively against established telecom giants. Meanwhile, numerous private-sector broadband firms are already vying fiercely in this space. As a result, broadcasting’s ambitious foray into the broadband arena is virtually doomed: even before it could gain traction, it’s already being edged out of the race.
So, Radio and Television should consider how to effectively market the cable TV service they currently hold.
In 2019, the smart home market became the focal point of competition among the three major telecom operators.
In 2018, China Mobile firmly cemented its position as the leader in fixed-line broadband, while China Telecom lost its long-held *throne* after years at the top. By 2019, competition in the fixed-line broadband market was set to intensify further. To either defend their existing foothold or expand into new markets, operators have turned to the smart home sector—making it both a key battleground and the next major growth driver in their competitive strategies.
Facing the competitive pressure, China Telecom has been continuously rolling out new strategies. At the end of last year, news emerged that China Telecom would establish a Smart Home subsidiary—a first-tier division under the group. This new entity will consolidate existing internal resources, including the Smart Home Operations Center and the Smart Home Industry Alliance, to better strengthen its presence in the smart home sector.
Moreover, China Telecom has been steadily strengthening its efforts in the smart home sector, leveraging telecom gateways and intelligent set-top boxes to deliver services such as smart networking, Tianyi HD, Tianyi Cloud Disk, and integrated home automation solutions. Together with alliance partners, the company is actively building three major ecosystems: connectivity, content, and home automation. As of January 2019, China Telecom added 730,000 new wired broadband subscribers, bringing the total number of users to 146.52 million.
Similarly, "occupying the home entrance and unlocking the blue ocean of smart homes" is also part of China Mobile's strategic plan. Last year, the company already secured an IPTV license, allowing China Mobile users—under the relevant regulations set by the *National Radio and Television Administration—to enjoy live TV, time-shifted TV, and video-on-demand services via IPTV.
China Mobile announced that in 2019, it will collaborate across three key areas: industrial digitalization, home digitalization, and the broader smart terminal ecosystem. In the realm of industrial digitalization, China Mobile plans to upgrade its 139 Plan in 2019, fostering integrated growth and innovation. Expanding beyond traditional connectivity, the company will shift its focus from mere connection services to "connection + applications." Additionally, the collaboration model will evolve—from solely providing hardware to jointly operating a wide range of smart terminals. At the same time, the depth of these partnerships will deepen, moving beyond simple product collaborations to delivering tangible value to both customers and partners. Specifically, industry-savvy partners will be empowered to co-create cutting-edge products, while customer-facing partners will gain opportunities to unlock new sources of value.
In terms of household digitalization, China Mobile will focus on building two key ecosystems: the smart hardware ecosystem and the content application ecosystem, ensuring that China Mobile customers enjoy even more convenient services.
Data shows that in January 2019, China Unicom's fixed-line broadband subscribers reached 81.507 million, with a net increase of 627,000 this month.
Smart WoJia is China Unicom's key initiative to enter the smart home market—centered around home video services, leveraging Unicom’s robust network bandwidth, and highlighting innovative home internet offerings. It seamlessly integrates high-speed broadband, 4G mobile services, landlines, and WoJia TV, offering a versatile family business-sharing plan that meets every household’s communication needs.
Meanwhile, China Unicom has also taken the lead in the industry by introducing "Dual Channels," providing two separate network infrastructures—one dedicated to IPTV services and the other for broadband internet access. These channels feature independent bandwidths, ensuring that streaming speeds don’t interfere with each other. This setup not only guarantees high-quality HD video playback for IPTV users but also delivers a seamless online experience, effectively eliminating network lag when family members are simultaneously watching videos, playing games, or downloading content.
Currently, dual-channel has become the standard for China Unicom broadband, and over 90% of China Unicom's broadband subscribers can enjoy the dual-channel service at no additional cost.
Additionally, to accelerate the intelligent transformation of fiber-optic broadband and build robust collaborative capabilities for boosting internet-based applications, China Unicom has launched commercial operations for its WoJia Speed-Up product. By the end of 2019, the company expects to achieve nationwide coverage across all 31 provinces.
Cable TV won't be replaced anytime soon.
In addition to IPTV steadily eroding the cable TV market, the rise of video websites—driven by smartphones becoming people's *go-to devices—means that viewing platforms are no longer limited to TVs or PCs. Now, as long as you have an internet connection, you can watch TV anytime, anywhere.
"So, has cable TV really been replaced like that?"
"Not necessarily."
First of all, nowadays many elderly people have grown accustomed to traditional cable TV and find it difficult to learn how to use internet-based TV services or IPTV boxes—making it tough for them to embrace new technologies. Moreover, in many rural areas, some seniors still rely on satellite dishes to watch TV programs. For these individuals, installing cable TV is costly, and they’re required to pay monthly fees year after year. At the same time, they either can’t figure out how to manage broadband internet, internet TV, or IPTV boxes—or simply have little interest in doing so.
Secondly, competition among video platforms is intensifying, with many leveraging specially curated programs to roll out membership models. Now, even accessing certain shows via internet-connected TVs or OTT TV boxes requires users to become members—and pay a fee. As a result, watching copyrighted, in-house content through IPTV boxes has inadvertently become a paid experience, subtly diminishing the overall viewing enjoyment.
Additionally, currently, the copyrighted content on domestic IPTV platforms primarily comes from satellite TV programs, self-produced content by the platforms themselves, and collaboratively acquired materials. As soon as copyrighted content is involved, playback becomes unreliable, leading to an unstable viewing experience that ultimately affects user satisfaction.
Therefore, cable TV still has its reasons for existence, though its golden age is already behind it—whether it will eventually be replaced may just be a matter of time.