Chinese TV Industry Facing Deep Restructuring - Connected TV Has Become The Newest Hotspot And Is Leading The Development Trend Of Colour TV Industry

written by: Richard Kastelein

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China Economic Net is reporting some interesting developments in the Chinese TV market with a distinctive shift from export to consumption with more domestic inventory than ever coupled with the overseas market demand.

"The aggregate output of color TVs will surely be over 100 million this year." Sun Xinguo, Assistant Secretary General of CVIA (China Video Industry Association), made such a positive judgment at the Quarterly Conference on the Operation of China Electronic Information Industry in the Third Quarter and China CTV Industry Research.

And Connected TVs are expected to have a significant impact:

With the trial policy on the integration of three networks being carried out, smart TVs, which are richer in content and more advanced in interactivity of entertainment, will become a new opportunity for the development of the color TV industry. Since the third quarter of 2010, the speedup of integrations of three networks and three screens has pushed the intellectual life to penetrate from mobile phones to TVs. The smart TV has become the newest hotspot and is leading the development trend of color TV industry.

The smart TV is approaching to be a flat computer. It has not only high-speed processing chip and complete operating system, but the software can be installed and uninstalled freely.

Hisense was the first to release the bulk production of "3D LED XT39" series of smart TV products. The users can customize the "TV Channels" freely, as well as surfing on line through the built-in browser. "The typical feature of a smart TV is that it can realize the functions of 'program on demand', 'program transmission', 'access to network' and 'playing games'." said Gong Lianfa, System Engineer of the Network Technology Research Centre of Hisense.

Over the past decade the Chinese video industry witnesses a new tide of development featuring flatness, digitalization, intellectualization, and networking, and plays an important role in the information age with the development of technologies and applications by improving the functions and broadening the application increasingly.

According to the data of AVC, the aggregate output of color TVs in China from January to September of this year is 83.6 million, up by 7.8 percent YOY; the output of LCD TVs is 58.9 million, up by 29.1 percent YOY, and PDP TVs 1.35 million, up by 2.3 percent YOY; the export of color TVs keeps on a growth of more than 30 percent. In 2009, the world aggregate output of TV sets was about 180 million; therefore, the output of China's color TVs has already surpassed half of the world aggregate output by far.

The output of color TVs is keeping growing, and the whole industry is optimistic on the output in the fourth quarter. At the conference jointly held by the Performance Inspection & Coordination Bureau and Electronic Information Division of Ministry of Industry and Information Technology, numerous companies and research institutes were present and showed their expectation on the growth potential of the output in the fourth quarter.

Zhao Maojun, AVC's Deputy Director in charge of research, said that the sales volume in the fourth quarter deserves to be expected. It is anticipated, according to the present data, "The sales volume of flat televisions will reach to 10.52 million in the fourth quarter, up by 22 percent YOY." The survey of AVC reveals that the retail of color TVs in domestic market in the third quarter of 2010 has reached to 9 million and the sales volume in the first three quarters has accumulatively realized 28.49 million, up by 19 percent YOY.

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