The Strategic Choice Of China’s Cable TV Industry--under The Background Of The Convergence Of Three Networks

The emergence of the convergence of three networks (triple play) stems from the progress and development of the technology, but its impact has gone far beyond the scope of technology.’Triple play’ is now affecting many areas, such as politics, economy, cultural and even the national security. China’s cable TV industry has been placed in the central of triple play in the state of insufficient marketization and industrialization.To apply the theories of industrial organization and competition theory to China’s cable TV industry research, to comb the relationship of trip play and the law of cable TV industry development, to analyze the changes of cable TV industry’s living environment and development mode, to grasp the strengths, weaknesses, opportunities and challenges for the future is the main purpose of this paper. To questing the development path of China’s cable TV industry, this thesis sketches out the ways for shaping the core competitiveness of cable TV industry, and competitive strategies, in keeping with China’s socio-economic current situation.On the background of the convergence of three networks, the network of cable television has been developing simultaneously with communication network and the Internet, which causing a series transformation on cable TV industry and finally the convergence with information industry. In this process, the transmission capacity of the cable TV industry has been enhanced and the function of the network has been expanded, but the competition has also become more intense.The practice for triple play of China’s cable TV industry has been carried on by enterprises, under the guidance of the government. The weaknesses of foundation, the single profit model and the shortage of funding are becoming the restrictions.Many developed countries, such as the United States, are adopting deregulation policy. Companies of cable TV industry are able to relocate the resources through the market transactions. And the three main telecom operators of China have already been reorganized into the nationwide full-service enterprises. The common basis for the American companies and Chinese telecom operators’development is adequately marketization and industrialization. The development of cable TV industry carries multiple targets, such as to construct the modern communication system, to ensure the sustainable development of the industry, and to achieve the survival and expansion of enterprises.Nowadays, the cable TV industry chain is decomposing, and transforming to the network-like industry, which makes the modular division of labor has become an effective way of integration and innovation. And the enterprises can shape their core competitiveness by improving of corporate governance structure, increasing of investment in technology research, optimizing the structure of human resources, and other methods.However, the cable TV industry has been developing in a complex environment, which is full of challenges and opportunities, making its strengths and weaknesses definite. Between the cable TV enterprises and telecom operators, there has been a basis for competition and cooperation. For this reason, choosing different strategies according to different business, the defensive strategy of video-related business and the offensive strategy of information services business for instance, would be the reasonable decision for cable TV enterprises. To maintain strategic alliances and risk control is the important factor to the implementation of the strategies.