A report on Shanghai Media Group IPTV subsidiary BesTV New Media by Minsheng Securities has predicted BesTV IPTV subscriber growth of more than 60 per cent in 2012, to between 16 and 18 million subscribers.
The number of BesTV IPTV subscribers grew to 10 million in 2011, accounting for a market share of more than 70 per cent. Value-added services currently account for 10 per cent of the operator’s revenues, a figure that the Minsheng Securities report said could grow to 30 per cent in 2012. Following BesTV’s formation of a joint venture with CCTV’s national online TV station CNTV, the company’s IPTV subscriber base expanded from four cities (Shanghai, Harbin, Dalian, and Xiamen) to 54 network convergence trial cities and regions around the country.
The Minsheng Securities report predicted that following the formation of the BesTV/CNTV JV, the operator’s IPTV service revenues will come from two sources. Revenues derived from existing subscribers will be received exclusively by BesTV, while revenues deriving from new subscribers will be split between BesTV and CNTV, with BesTV receiving between 45 per cent and 50 per cent of revenues.