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Traditional cable TV operators see their core business being eroded as IPTV services become more widespread. This technology offers huge potential for telecom companies. A consolidation trend can also be observed in Asia where the strategic vision of many operators is to become a full service provider of TV, voice and data services.
While operators in more mature markets such as Taiwan, Korea and Hong Kong find it difficult to add more viewers, there are ample opportunities for growth in the developing markets of South and Southeast Asia. Expanding the audience in these markets however poses the risk of unauthorized viewers bypassing subscription fees.
Despite increasing efforts to crack down on offenders, concern among operators over content substitution, mainly via pirated DVDs, Internet content and downloads, is as prevalent as ever. However, new HD content formats and more interactive delivery by next generation set-top boxes might help operators strengthen their position, boost revenue and increase ARPU in mature markets.
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