IPTV encounters OTT. Why are Cable TV and China Unicom still fighting over 3568?

Many Chinese people seem to believe that money can make the world go round. However, there are some things that money cannot buy, such as health. Even in the business world, there are some things that are not for sale. With the Internet so developed today, many video organizations are unable to buy content with money, and they are troubled and even sued for this.

Not long ago, before the European Cup ended, the radio and television department and the telecommunications department started a melee over the broadcasting issue. According to media reports, Shandong Cable sued Shandong Unicom for alleged unfair competition, on the grounds that Shandong Unicom broadcast CCTV's encrypted channel 3/5/6/8 programs without authorization. Of course, Shandong Unicom was not to be outdone. Unicom believed that it was only responsible for the operation of the broadcast channel, and the broadcast content was handled by Shandong Radio and Television New Media and Ai Shang TV. Shandong Cable sued the wrong person. In fact, everyone can see at a glance that it was all for the live broadcast of these games on CCTV Channel 5.

Everyone knows that after installing the cable TV of the broadcasting and television, you can watch the standard-definition and high-definition TV programs of CCTV, from 1 to 13, which should be more than thirteen programs. However, many people do not install the cable TV of the broadcasting and television, but the IPTV provided by the telecommunications operators. They will find that the programs of their own CCTV do not include channels 3, 5, 6, and 8, that is, the variety show, sports, movie and TV series channels. Of course, there are some IPTVs in some places. Why is there such a difference?

The main reason for this difference is that CCTV's programs 3, 5, 6, and 8 have been encrypted paid TV programs since they were launched in 1996. CCTV has granted the exclusive broadcasting rights of the 3, 5, 6, and 8 program signals to the Central Satellite TV Broadcasting Center. Without the formal authorization of CCTV, broadcasting 3, 5, 6, and 8 programs in any media is an infringement. CCTV's 3, 5, 6, and 8 channels are charged extra. Although these channels appear to be free channels like other provincial satellite TV stations, they are actually opened in the name of pay TV. Cable TV operators in various places need to pay the satellite broadcasting center on time every month for each household.

According to experts, the document of the former State Planning Commission (Price Letter [1995] No. 33) stipulates that CCTV 3, 5, 6, and 8 programs are charged at a fee of 2 yuan per household per month nationwide, and local radio and television network operators can charge cable TV viewers 3 to 4 yuan. CCTV takes into account the affordability of various regions and adjusts the charging standards to 2 yuan, 1.7 yuan, 1.4 yuan, and 1 yuan according to the actual economic conditions of various regions in my country. This means that part of the basic cable TV subscription fee that we usually talk about is collected on behalf of CCTV. You can watch it because you pay the money.

As we all know, there are three ways to watch TV programs now, one is cable TV from radio and television, one is IPTV from telecom operators, and the other is OTT. Cable TV from radio and television has good live broadcasting effect and is easy to operate, but it is not interactive and cannot be freely selected; OTT does not allow live broadcasting, and sports events such as the European Cup and the Olympics must be watched live to be enjoyable, and OTT is almost unusable; IPTV from telecom operators can have live broadcasting and can be freely selected, which is a relatively suitable method under the current situation. However, these signals from the IPTV broadcast control platform, although they are live, often have delays. As for CCTV 3, 5, 6, and 8, they are in a gray area.

According to the regulations of radio and television and historical practice, the Satellite Communication Center will only authorize channels 3, 5, 6, and 8 within the system, not outside. However, the Satellite Communication Center also has its own calculations. First, the Satellite Communication Center has always been worried that the number of users in various regions will be underreported, resulting in a reduction in its own income. Second, the number of cable TV users has been decreasing, and the Satellite Communication Center needs to consider new business growth points. Third, IPTV from telecom operators is always better than OTT. As long as you pay to watch, it doesn't matter who you give it to.

Because it is said that the cable TV industry spends about 4 billion yuan every year on this, and the exclusive broadcast of these pay channels has almost become the only reason why cable TV has not been abandoned by many people. If the exclusive live broadcast of CCTV Sports Channel is broken, it is conceivable that the appeal of cable TV will be completely lost, and even a wave of dismantling will be ushered in.

As a result, the interests of cable TV operators and satellite communication centers began to diverge, and the situation of the meat rotting in the pot began to loosen. According to statistics from the Ministry of Industry and Information Technology, the number of IPTV users in my country reached 45.9 million in 2015, and the IPTV-rich provinces including Jiangsu, Sichuan, Hebei, Shandong, and Guangdong were unstoppable. If we add the tens of millions of OTT users of China Mobile, the penetration rate of TV users of telecom operators has reached more than 25%, and the satellite communication centers began to pay attention. In some places, due to the temptation of the market, CCTV channels 3, 5, 6, and 8 began to transmit to IPTV platforms at a cost of about 3 yuan per household per month. In order to develop users, some places even provided signals to IPTV platforms for free. Of course, cable TV operators were furious.

Therefore, it is said that in April 2016, the Liaoning Provincial Press, Publication, Radio, Film and Television Bureau held an emergency meeting on "Strengthening IPTV Management Video" and announced the immediate cessation of the illegal transmission of CCTV Channel 3568 programs by IPTV. Subsequently, Shandong Cable sued Shandong Unicom for infringement.

To be honest, the management system of China's radio and television is so complicated that few people can clearly understand the relationship between them. It is really difficult to say whether it is infringement or right. Those who say it is infringement are sure, and those who say it is legitimate have sufficient reasons. Nowadays, with the rise of new media, TV stations are constantly increasing their voice in negotiations with local cable TV stations on paying landing fees. IPTV does not require local satellite TV stations to pay fees, and even spends money to buy content from them, and shares the profits between the general platform that provides broadcast control and the new media company of the second season broadcast control platform or local TV stations. As for OTT, it is developing in many ways to seek breakthroughs and dare not neglect them. In short, it is definitely the most powerful cable TV operators that have been gradually neglected.

Take the Shandong lawsuit as an example. AiShang TV Media Co., Ltd., which appeared in it, is the operating organization responsible for the operable business of the only IPTV central integrated broadcast control platform in the country. The investors are China Network Television (CCTV International) and Shanghai Radio and Television (BesTV). If you cooperate with this company, it means you can do IPTV. According to regulations, AiShang TV must connect with local telecom operators through the local secondary broadcast control platform. Local TV stations participate in the business income sharing from telecom operators and can also provide local channel programs in IPTV.

Therefore, we can see that when China Mobile's Migu Video Technology Co., Ltd. announced on June 30, 2016 that it had signed a strategic cooperation agreement on IPTV business with CCTV's AiShang TV Media Co., Ltd., it caused a stir in the industry. This is also the most basic business preparation for China Mobile to enter IPTV. It is said that a mobile phone company in a western province cooperated with an Internet TV integrated broadcast and control license operator to broadcast the European Cup live, and the use of OTT to sit IPTV angered the regulatory authorities. After signing the cooperation agreement with AiShang TV, China Mobile's IPTV business only has the so-called "license" to be issued, and it will soon begin to properly deploy its IPTV business.

In the era of Internet+ and the integration of three networks, no force can stop the expansion of people's needs. From traditional cable TV to current IPTV and even the future OTT, even with various restrictions and struggles, they will eventually move towards the future. The business model of the TV and video industry has reached a time when it must be changed. The development of IPTV and the emergence of OTT will not be the cause of the decline of the TV industry. They may even become the starting point for the industry to improve its scale and efficiency. However, outdated concepts and backward thinking will definitely be the root cause of the decline. Conservativeness and stubbornness will definitely lead to being swept into the garbage heap of history.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.