Business Model Research For Pay TV

Digitalization for radio,film and television industry is a constituent of national development strategy in the Tenth five-year Plan. Digital updates have been completed so far in provincial and municipal TV stations in Mainland China. From consumers' point of view, digital improvement brings about varieties of TV programs. As a result, viewers enjoy more choices to TV programs; on the other hand, for TV program managers, technical innovations arise severe challenges for traditional business model of "programs plus advertisements ".Rapid increase in TV programs desperately needs a new business model to make it well grounded and continue to develop. Many domestic TV stations have now started pay TV operation characterized by its income sources that is not so dependant on advertisements as it was, viewers' payment takes over.Fujian TV Station initiated pay TV business as early as year 2000. Frustrated by many political and intrinsic factors, pay TV business does not go as well as expected. What's more, competitors from other provinces just stride their way into Fujian market, gradually taking away viewers who were loyal to Fujian TV.Firstly, by illustrating the basic situation of pay TV's industrial chain,summarizing the remaining problems therein, the thesis outlines the market chances; in accordance with actuality of Fujian TV Station, the sector that Fujian TV Station is supposed to choose in pay TV's industrial chain, is presented; afterwards, the thesis proposes the concrete business units and discuses feasibility.As a conclusion, the thesis decides that Fujian TV Station are bound to play an active role in pay TV business.