Thursday, May 18, 2006

Digitalization of Cable TV: It's show time for China

Digital cable television service will be the standard norm within in a short time. Chinese government just finished a three-year pilot program of digital cable television in 49 areas. The switch to digital cable TV from analogue has been very successful and the Chinese government feels confident about introducing digital cable TV in all the major cities of China. Right now, the number of digital cable TV users is around 1 million and there will surely be a multifold increase in the number of such users. There are now 120 pay television channels that provide service to digital cable TV users.

You can understand that digital cable TV is becoming popular from the financial results of China Digital Media Corporation. In the first quarter of this year, the company had:
" * Revenue increased 272% to $3.7 million from $1.0 million
* Net income before tax improved 65% to $734,000 from $438,000
* Net Income grew 1.5% to $445,000 from $438,000"

The figure quoted above is more than impressive and I am sure that there is too much potential for growth as these are the very early days for digital television in China.

Related Articles
China to popularize digitalization of cable TVChina Digital Media Corporation Reports First Quarter 2006 Results