Standards Battles Heat Up in the Chinese Digital TV and DVD Market

ABI: The Chinese television market is experiencing three dramatic changes: the migration from CRT TVs to flat panel TVs; the transition from analog to digital TV broadcasting; and the replacement of traditional TVs with next-generation models that form part of the information/networking home system. Meanwhile, the Chinese DVD market has maintained its structure with little change since 2004. A common issue in both the TV and DVD markets is the intensified competition around standards, both among Chinese vendors and between Chinese vendors and foreign players. In 2005, the EVD standard was announced as the industrial high definition DVD standard; the video part of AVS was established as the national video coding standard; and IGRS was approved as the national 3C-convergence industry standard. Although the terrestrial digital TV standard is still pending, ABI Research expects that a mixed standard based on several proposals will be set up as the national norm. All these developments demonstrate China's attempt to leverage its vast consumption potential and growing manufacturing might to shake off the dependence on patents held by European and US companies. However, the title of national standard is gradually losing its power in a market-oriented economy. Because they are not compulsory, some standards — despite gaining the support of the Chinese government — still lose out in the competitive market place. Speed of industrialization and the ability to commercialize operations are now playing more important roles in real-world competition. At the heart of the competition, the attitude of the Chinese vendors is ambiguous. The eagerness to be self-reliant, the uncertainty around Chinese standards, the attraction of the export market and the fear of lagging behind are driving Chinese vendors to adopt a multi-cooperation strategy. Changhong, TCL, Hisense and Konka are members of IGRS as well as partners of Intel. Chinese Digital TV and DVD Markets: Trends and Forecasts for CRT, LCD, Plasma, OLED, HD DVD and Other Emerging TV Technologies in China

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