Abstract
Abstract Taiwan cable television market underwent monumental changes driven by vertical and horizontal consolidations, legislative changes in Broadcasting Law, thus moving operators from a single company model towards Multiple System Operators (MSO) and group operation.Despite the intense competition among cable television providers, the introduction of digital services has been extremely slow。In order to enhance national competitiveness and quality of life for Taiwan nationals, the Legislative Yuan on 8th July 2010 passed the 「Digital Convergence Development Program」. The fast pace of information and communication technology development was such that stakeholders in the industry have an expectation exceeding that which have been put forth by the program. As a result, an updated program was approved by National Communication Council (NCC) in May 2012 「Digital Convergence Development Program (2010-2015) update 1 version 2.0」to rapidly bring forward the objective of 「Cable Television Digitization」, enabling 「Rapid Progress Digital Television」as the development theme, and putting forward two indexes : 1 Increase the promotion of the digitization of Cable Television and its adoption, from the original national adoption rate of 50% by 2015 to 100% by 2014. The 50% target timeline is also to move forward to 2013. 2. Achieve 50% adoption rate for the emerging network video conference service . The digitization program is to be linked to license evaluation and renewal. Since Taiwan’s government promotion of the digitization of Cable Television system, the overall net growth rate was only 18%-20%.In order to accelerate growth momentum in the digital television Industry through the effective increase in national’s adoption of digital television services, this research provides an analysis of the Taiwan’s Digital Cable television industry. In addition to Cable Television system providers, providers from other industries are also proactively encroaching for the digital video market.In the area of digital television, since June 2012, Cable Television companies have been compliant to the comprehensive digital transformation policy. In particular, Chunghua Telecom’s MOD has assumed an aggressive positioning, and the potential of Broadband Television is not to be underestimated. The great business opportunity of digital television has motivated MSOs and independent system providers to continue to invest in the construction of digital front-end technology, laying down the technology foundation for Hybrid Fiber Coaxial, in the process, changing the industry structure and competitive trend. While Taiwan Cable Television is not only moving toward digitization, bi-directional interaction services are also about to commence. This report commences with literature review followed by qualitative research, analysis of the cable television development environment and its competitiveness based on the current industry structure, as well as the impact of these on the competitiveness of other industry. The report puts forward a competitive strategy based on the evaluation of these elements. Through in-depth interviews, Five Forces and SWOT analysis, the report reviews the competitive challenges faced by Taiwan Cable television in the digitization transformation process against substitute product (Wireless Television Station, Cable Television Station and Chunghwa Telecom MOD). The report further categorizes the current challenges and bottlenecks in the development of digital television services, and provides recommendation for viable solutions. Key words:Cable Television, Digitization, Digital Television, Streaming, Five Force Analysis, SWOT Analysis