Report: Regulatory Changes Needed to Drive Taiwanese TV Market

TAIPEI, April 16:
According to a new study by the Cable Broadband Institute in Taiwan (CBIT) and
Media Partners Asia (MPA), a healthy regulatory environment will be key to the
growth of the Taiwanese pay-TV market, where an 80-percent digital TV
penetration is possible by 2013.

The report, Broadband
Digital Convergence: The Role of Cable in Taiwan, is of the opinion that Taiwan’s current
regulatory landscape is limiting product innovation, consumer choice, industry
growth and investment. CBIT and MPA are calling for the centralization of cable
TV regulatory systems, flexibility in the pricing and distribution of cable TV
programming services, and a level playing field for competition with no limits
on cable coverage and market share.

With the right
environment, Taiwanese cable operators could potentially help drive digital TV
penetration from 7 percent today to approximately 80 percent by 2013. This
could generate $4 billion in revenues, with benefits to employment, content
creation, infrastructural investment and consumer competition and choice.

The report also notes that
some 55 percent of television homes would receive digital video services
through cable networks by 2013, while 25 percent would obtain access through
alternative systems, including IPTV and DTH satellite. Developments in the
market could also lead to 35 percent of homes subscribing to multi-play
broadband digital services by 2013 versus 5 percent today, while 43 percent
would adopt broadband Internet access at speeds between 10 and 100 Mbps.

“Bridging the digital
divide means consumers could enjoy information and entertainment services at
competitive prices and with greater choice,” said Bobby Chen, the CEO of CBIT.
“New services would include standard and high definition digital television
channels, personalized and on-demand television content, interactive television
and next-generation broadband Internet access and telephony.”

“Progressive cable TV
industry regulation will also bring economic benefit and national pride,” added
Vivek Couto, the executive director of MPA. “The economic impact would be
sizable as cable operators re-invest cash flows to create employment, acquire
content and invest in technology.”

—By Mansha Daswani