ABSTRACT
In a landscape of digital convergence, not only do industry players in the cable TV business have to accept the transformation brought about by digital technology, they also have to face the challenges that arose from their competitors on the internet directly. In the face of high speed information network development trends, consumers have access to diversified sources of entertainment media. They are only interested in the continuity of streaming, as well as immediacy and richness of content. As long as industry players are able to provide timely media content that is rich and of high quality coupled with fast comprehensive application services, they will be able to gain the acceptance of consumers. This research redefines industry supply chain post-digitization of cable TV and affirms the relative strategic position of industry players in the cable TV business. The research paper also utilizes the Porter five forces analysis model to shed light on the corresponding situation caused by competition that resulted from the digital convergence of cable TV, projecting a re-aligned framework of cable TV industry competition. The greatest threat to cable TV brought about by digital convergence stems from the internet TV service providers and alternative media products in the form of OTT TV, as well as the customization and mobility of media content all working together to gradually decrease the number of existing and potential consumers of cable TV. This research employs case study analysis methodology and expert interviews to study the impact of digital convergence on competition in the cable TV industry and its competitive strategy, thereby proposing three competitive strategies which cable TV owners can adopt to improve their competitive advantage.
