Since the first public television broadcast took place in Berlin, Germany, in March 1935, television has gradually found its way into every family and become an indispensable cultural medium. TV has undergone many innovations driven by technological upgrading. The rapid development of network and digital technologies in the late 20th century brought us into a new era of cable digital television, and opened up a broad market for the development of television industry. Digital technology and triple play integration strategy have promoted the development of the cable TV industry, constantly widening the industrial boundary and transforming its growth power (Chen Jinqiao, 2013), which enable the communication mode of program content to evolve from supply-orientated to demand-orientated, from one-way push to two-way interaction, and from closed systems to open systems (Gu Chengyan & Hu Hanhui, 2008).
The television industry has been evolving since the first black -and -white TV broadcast. Television is the cultural product of the development of electronic technology to a certain stage, and its existence and development totally depend on the level of technology. With each technology upgrade, the TV industry is impacted to varying degrees. Since the content of TV program is both the product of television and the most basic cell of the TV industry, how to rely on technology to improve the quality of content and user acceptance will be the main basis for the sustainable development of the cable TV industry.
The development of digital technology has endowed the cable TV industry with the possibility of participating in the triple play strategy, and the industrial competition pattern has begun to shape. At this point it is of practical and management significance to do some rational total factor productivity (TFP) and industrial efficiency evaluation, which will provide a theoretical basis for the sustainable development of this industry.
This paper attempts to study the sustainable development of the cable TV industry driven by digital technology. With the help of TFP and industrial efficiency evaluation models, a theoretical and empirical analysis of the sustainable development of the CATV industry is conducted on the basis of industrial organization theory, platform economics theory, feedback economics and symbiosis theory.
The chapter Ι presents the background, the main content, the methods and the innovations of this paper. The chapter II surveys from three aspects. First of all, it does a theoretical research of the CATV industry from the angles of both industrial organization and two-sided market. While the former focuses on the cooperation and competition within and between networks, the latter introduces the externality properties mainly based on the characteristics of the cable television. Then the existing research on industrial efficiency evaluation is reviewed. Finally we analyze the existing literature about the sustainable development criteria on the basis of the research orientation of this paper. The research of these three aspects is the cornerstone and direction of the follow-up four chapters.
The chapter III gives an overview of the development of the (cable) television industry. It mainly combs the development trend and status quo of the TV industry in typical countries, and analyzes the development of both operators of the TV industry and channel from the perspective of supply and the choice of users from the perspective of demand. Then it traces the technological evolution of the CATV industry and outlines all developments of CATV driven by different technologies. Besides we divide the development process into five sub-stages based on the main market characteristics and subject behaviors. Finally an analysis of unique industrial chain structure and industrial characteristics of CATV in the digital age is made.
The chapter IV points out that as an important part of the radio and television industry, the development of the CATV industry is subject to the overall development of the radio and television industry. At present, the development of the CATV industry can no longer simply rely on human and capital investment and policy protection to pull, but has entered the new normal fully competitive development period that aims at increasing TFP. In this chapter we measure the TFP changes in various provinces based on the Malmquist-DEA model, and then explore the TFP differences from the time dynamic dimension and spatial regional dimension in the radio and television industry. The results obtained further reveal the inherent laws and mechanisms of the efficiency difference evolution of the CATV industry in China in the past ten years.
The chapter V is an efficiency evaluation research based on the two-stage production process with consideration of the network externality. Relying on years of operation of the CATV industry, this chapter pays more attention to the user role in the industrial chain, i.e., "network externality”, and then proposes an advanced DEA model to accurately analyze the industrial operation efficiency of the CATV industry in recent years. The efficiency value of the content transmission stage is generally higher than that of the content production stage. Maybe the reason is that "network externality” of the users is fully utilized in the content transmission stage, and the degree of marketization is higher in this stage, while the content production stage is mostly unable to respond to user’ demand in time. In addition, the inputs of the first stage are the result of strategic plannings and can not be used efficiently in these three years.
The chapter VI figures out that the sustainable development of CATV driven by digital technology is not only influenced by its own development mode but also restricted and promoted by the development of similar industries. First, with the help of the “seven forces model”, it focuses on the sustainable competitiveness of CATV in the market system, and then analyzes the multidimensional channel integration mode from a strategic perspective. The different industrial chain integrations contribute to the stable development of the industrial chain, and at the same time will create a scope economy and enhance the operational efficiency of the CATV industry.
The last chapter VII summarizes the full paper and forecasts the possible future research.
The research methods and conclusions drawn from the research on the evolution of the CATV industry, the changes of industrial characteristics, the measure of TFP and the evaluation of industrial efficiency based on the industrial chain deconstruction have some guiding value for the relevant theoretical research and practical development.