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December 17, 2009

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IPTV users propel Shanghai to No. 1

SHANGHAI'S Internet-based TV service users have surpassed 1 million, which propelled the city to No. 1 in the world with the most number of IPTV users, operators said yesterday.

The Internet Protocol TV, which provides users customized programs, represents progress in the convergence of telecommunications and broadcasting networks, analysts said.

China Telecom's Shanghai branch and Shanghai Media Group, local IPTV operators, will launch nine high-definition channels through IPTV and provide HD IPTV services in five-star hotels in Shanghai next year.

"Shanghai is the first city nationwide to have more than 1 million IPTV users and also ranks No. 1 in the world," said Zhang Weihua, Shanghai Telecom's general manager.

"The scale economy effect will enhance IPTV development in the city and the country, and we will innovate the services."

Shanghai has 1 million IPTV users so far since the technology debuted in 2005. SMG, the country's No. 2 media group behind CCTV, provides content for the services, and Shanghai Telecom operates the network. Both sides will provide services on "screens of handset, TV and computers".

Compared with traditional TV, IPTV provides more interactive and customized services. They include live television, and content (especially video) on demand.

In China, the revenue of the IPTV market will reach 16.7 billion yuan (US$2.45 billion) in 2009, a jump of more than 50 times compared with that of 2005, according to Analysys International, a Beijing-based IT research firm.

Based on the improved network structure, Shanghai Telecom will launch HD channels through IPTV for family users and industry clients, including five-star hotels.

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