Media Platform Competition: The Displacement Effect of IPTV on Cable TV in Taiwan

Media Platform Competition: The Displacement Effect of IPTV on Cable TV in Taiwan

Yu-li Liu (National Chengchi University, Taiwan) and Wen-yi Hsu (National Chengchi University, Taiwan)
DOI: 10.4018/978-1-60960-011-2.ch016
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Abstract

In Taiwan, there are three major TV platforms: terrestrial TV, cable TV, and IPTV. When faced with various TV platforms, the consumers in Taiwan will be able to choose from many broadcasts. When a new medium emerges, there are always concerns of its displacement effects on existing media. Many studies have explored the displacement effects of newly-emerging media, and have come up with a variety of sometimes conflicting findings (Lee & Leung, 2006). This chapter aims to analyze the media platform competition, namely, the displacement effect of IPTV on cable TV. The research methods used include a literature review and a telephone survey. With regard to the telephone survey, 612 of CHT’s IPTV users were selected systematically based on the name lists provided by the service provider. In this study, while the platform displacement effect of IPTV on cable TV is clear, the statistics reveal a different result for the time displacement effect.
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Introduction

In recent years, Internet Protocol TV (IPTV) has become a new service in many developed countries. According to the Multimedia Research Group (MRG)’s forecast released in November 2009, the number of global IPTV subscribers will grow from 28 million in 2009 to 83 million in 2013, reflecting a compounded annual growth rate of 31% (www.ncc.gov.tw). Even though CHT’s IPTV is not similar to IPTV services worldwide, it is still very interesting and important to know whether there will be any displacement effect of IPTV on cable TV.

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