A theoretical and empirical study on China's transition to digital TV

This paper explores the impact of policies made by the State Administration of Radio, Film, and TV on China's transition to digital TV. The method of stakeholder analysis is used to present a theoretical study on the digital transition, with a quantitative model analyzing the welfare change of three segments of consumers. A simultaneous-equation model is used to study the characteristics of the demand and supply of digital TV in China. It is argued that the policy of uniform transition that ignores coordination among stakeholders does harm to consumers’ benefits, and the healthy and sustainable development of China's cable digital TV industry. In an introductory phase of digital TV, educating consumers with convenient and pleasing experience is essential, and restructuring cable operators in a market-oriented way is also critical for developing countries like China.