Scenario 4: The same TV industry structure

The current situation is that in most families, they are still using traditional ways of watching TV: terrestrial, satellite and cable TV. For people who like using computers, they feel convenient to download TV series and movies through Internet via BitTorrent, for example. Compared with IPTV now, PVR has more market share. Unlike the common anticipation that there are high customer demand for “ watching TV at anytime”, people are convenient with current TV programs as there are so many channels and choices and they can always find something interesting. The quality of programs through Internet TV is not much better than traditional TV channels. As a result, they are more sensitive to price and don’t want to pay quite a lot subscription money for Internet TV. All these result in a slow market development of Internet and PVR. This also results in the relatively low development of IPTV technology, and there are quite a lot of issues related with standardization. The introduction of Internet TV may also totally change the TV industry. There are a lot of interest conflictions between the new players and traditional TV industry players. The government also intervenes. In this competition, the traditional players are quite strong and finally win. For the small fraction of families who wants video on demand, they can choose Internet TV or PVR. However, as PVR developed earlier and have a better customer base and reputation, PVR has a better market performance. At last, the TV industry structure remained almost the same. Most families watch traditional terrestrial, satellite and cable TV, and also download videos through Internet.