The Transformation of Taiwan’s Cable TV Industry Value Chain─Impacts from Globalization and Broadband Infrastructure Development

• Main Authors: Hung, Wen-Chin, 洪玟琴
• Other Authors: Tang, Ming-Je, PhD
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/09045974765443000342

碩士 === 國立臺灣大學 === 國際企業學研究所 === 91 === Worldwide media industries, lead by the introduction of new technology, have been impacted by the adoption of broadband infrastructure. Worldwide investors early on recognized Taiwan’s market as a fast-growing broadband market. This speeds up the expansion of media industry’s position in the value chain. In 1999, Legislative Yuan passed a law to allow cable companies to do cross-industry investment. Additionally, as part of the commitment for WTO accession in 2002, Taiwanese government passed a law (Cable Law, Section 19th, reference with Telecommunication Law, Section 12th), which allowed foreign companies’ ownership in Taiwanese cable TV companies to be up to 60%. These new laws gave Taiwanese cable TV companies an opportunity to access international capital sources, and created incentives to become global companies. The integration of cable TV broadband companies resulted from the new laws also gave media industry opportunities to integrate broadband and 3C (Communication, Content, Consumer electronics). The scope of this Thesis is to analyze the opportunities and challenges of Taiwan’s Cable TV industry that has a penetration rate as high as 82%. The analysis first describes the opening-up of the tele-communications industry in the US in 1996, which allowed telecom companies to invest in cable TV industry. This law increased the trend of mergers in the telecom industry. The trend has continued in those markets that have similar characters as the US. Since 1999, Taiwan’s media industry has also adopted this trend of mergers. The main purpose for foreign investors to invest in Taiwan’s media industry is to prepare for the Greater Chinese market. With limits set by Taiwanese government’s regulations, Taiwan’s cable TV industry does not have any advantages that would make it a lead-market for the Greater-Chinese market. This thesis covers the development of Taiwan’s cable TV industry from 1968, when cable TV business was still illegal, to today’s oligopoly situation. It also explains the opportunities and challenges of cable TV industry brought by digital and broadband technologies. Although the analysis shows a big potential for Taiwan’s cable TV industry to expand into global market through the relationship with international investors, there are problems which need to be solved: 1. The local Taiwan cable TV industry has reached a very high penetration rates. Unless companies in the value chain do create high value-added activities, the room for growth is very limited. 2. Cable TV MSO companies are facing the challenges of technology replacement. 3. Is Taiwan in a Lead-market position or just a short-term transitional market from foreign investors’ perspective? This thesis is constructed using the frameworks related to industry development. The analysis suggests the necessity in building a globalization supply chain. The analysis using Industrial Organization Theory suggests the importance of vertical integration within the supply chain. The thesis also suggests less control by government admonition agent. Instead, government’s media related technology agents should play an active role and give awards to the technology development of companies in the industry, and try to integrate the success of Taiwan’s IT industry with media industry.