Cable operators 'need new focus' in content-rich world

Over-the-top content is set to shake up the traditional television industry, with multiple functions including video on demand, gaming, online shopping and social networking, a media research firm has forecast.

It will all be made possible through the integration of TV, personal computers, set-top boxes, tablets and smartphones.

"As the content available through OTT TV is richer than that offered by traditional TV systems, a growing number of users are returning to their living room," said the report.

"Many of the cable TV operators have realized that OTT TV may become one of their major competitors. They must make changes," said Luan Xutao, director of the operator relationship department at Nielsen-CCData Media Research Co Ltd.

"A number of Internet companies have joined the competition for the OTT TV market. Once they come up with a great business solution, cable TV operators will be challenged," he said.

But Luan added that traditional broadcasters don't face an immediate huge threat, as their programming remains attractive to viewers of all ages.

Some industry experts are skeptical about the possibility of cooperation between OTT TV service providers and cable TV operators.

"The radio, film and TV sector is very complicated in China. Each province, city and county may have its own cable TV operator.

"OTT service providers will have to negotiate with cable TV operators one by one. That's too difficult," said Xu Hao, online video analyst at iResearch, a market research firm focusing on the Internet industry.

If all involved decide to cooperate, it's likely that telecommunications operators will provide operating platforms; cable TV operators will provide live streaming and Internet companies will provide other video services, according to Xu.

The key question is: who will be the leader?