Company Study of CTV Media

In 2006, China's HDTV sales volume grew by 151.05%, reaching 4.77 million units. It's estimated that the sales volume will amount to 9.5 million units in 2007, and the total number of HDTV in China will reach 16.5 million units by the end of 2007.

In 2006, China's digital TV industry was largely promoted. By the end of 2006, 25 of China's cities had completed the digitalization of cable TV. According to the statistics from the State Administration of Radio, Film and Television of China, the number of digital TV subscribers in China had increased to 12.9 million by the end of 2006 from 4.39 million in the end of 2005, including 4.5 million digital TV paying subscribers.

At present, the company's main business include advertisement, movie & TV production and tourism, of which the proportion of revenue from movie & TV business declined to 50.61% in 2006 from 76.30% in 2001; correspondingly, the revenue from ad business shared a proportion of 38.05% in 2006, much higher than 3.87% in 2001.

Furthermore, China's HDTV, which currently is still in the incubation period, will grow rapidly in 2008-2010 due to the driving force of Beijing 2008 Olympics. The predicted domestic market share of CCTV HD channels will reach 30%, so the subscriber number will reach 300 thousand, 600 thousand and 1.05 million respectively in 2008-2010.