Profile: China Digital TV Holding Co Ltd (STV.N)
19 Sep 2014
China Digital TV Holding Co., Ltd. (CDTV Holding), incorporated on April 19, 2007, is a provider of conditional access (CA) systems to the People’s Republic of China’s digital television market. The Company’s CA systems, which consist of smart cards, head-end software for television network operators and terminal-end software for set-top box manufacturers, enable digital television network operators in the People’s Republic of China to control the distribution of content and value-added services to their subscribers and block unauthorized access to their networks. As of December 31, 2012, the Company had installed CA systems at 385 digital television network operators in 29 of the 32 provinces, autonomous regions and centrally administered municipalities in the People’s Republic of China. In addition, it sells advanced digital television application software, such as electronic program guides and subscriber management systems to digital television network operators. The Company is also developing and commercializing solutions and products, including value-added digital television services, cloud computing technology-based digital video delivery solutions and advanced digital television terminals. The Company’s products and services include end-to-end CA systems, including smart cards, head-end software and terminal-end software; other digital television application software for television network operators; and other products.
The Company’s CA systems consist of software, which is installed at the premises of the television network operator, or the head end; software, which is installed in a set-top box at the subscriber’s end, or the terminal end, and smart cards, which are inserted into the set-top boxes. At both the head end and the terminal end, its CA systems are designed to interface with the software and hardware of other vendors. Its CA systems give cable television network operators to charge subscribers on a per-channel or per-view basis, and to restrict viewers from making copies of the programs they watch. Its CA systems also support or offer video on demand, near video-on-demand, push video-on-demand, personal video recorder, parental control, location control, e-wallets, messaging and upgrades.
The Company’s smart cards are manufactured by third-party manufacturers based on its blueprints, and then are encoded by it on its premises with security codes to each customer. It forwards the chips to smart card manufacturers in the People’s Republic of China, which embed the chips in plastic cards. When it receives the cards from the card manufacturers, it programs each one with a security code so that it can communicate with the CA systems of its intended network. The Company’s head-end software includes an entitlement management message generator, which notifies the smart card whether the subscriber is entitled to view a program or not; an entitlement control message generator, which sends messages that the set-top box uses to unscramble the digital television signal, and encryption software, which encrypts the outgoing messages.
The Company’s head-end software includes simulcryption software, which allows network operators to install parallel CA systems from multiple vendors and transmit their programs to some subscribers using one CA system’s security codes and to other subscribers using another CA system’s security codes. Its simulcryption software and open-interface technology enable it to work with operators to install parallel CA systems, and it has integrated its CA systems with those of NDS Group, Irdeto Access BV, Sumavision Technologies Co., Ltd. and DVN Holdings Ltd. As of December 31, 2012, its CA systems had been installed at 385 digital television network operators.
The Company licenses its CA systems terminal-end software to whichever set-top box manufacturer has been chosen by its customer to produce set-top boxes compatible with its CA systems. Once its customer has selected one or more set-top box manufacturers, the selected manufacturers enter into contracts with it to license its terminal-end software for use in their manufacturing processes so that their set-top boxes can be used on the planned network.
Other Digital Television Application Software for Television Network Operators
The Company’s other digital television application software for television network operators includes subscriber management systems and electronic program guides. It produces subscriber management system (SMS). Its SMS software is compatible with the CA systems of other vendors, and it sells it on a stand-alone basis, as well as packaged with its CA systems. Its SMS software maintains and updates a database of subscriber information; processes subscriber orders for new services; maintains billing, payment and authorization records and sends e-mail bills and receipts to subscribers, and processes subscriber requests to repair or replace defective or lost set-top boxes or smart cards. As of December 31, 2012, its SMS software had been installed by 117 television network operators.
The Company’s electronic program guide is a software application, which is installed at the head end of a CA system and can be controlled by a remote control. Viewers can use the guide to obtain program schedules, as well as information about specific programs, such as plot descriptions and the names of featured actors. As of December 31, 2012, its electronic program guide had been installed by 208 television network operators. Its electronic program guide may be sold together with its CA systems, but it is also compatible with the CA systems of other vendors.
The Company sells other products sourced from third party suppliers, such as integrated chips, surface mounted device chips and multimedia home entertainment boxes. It provides its customers with integrated chips for set-top boxes that have been made to our specifications by third party manufacturers. Multimedia home entertainment boxes are triple play terminals, which provide consumers with tri-networks integration applications, such as digital television, Internet protocol television (IPTV), Internet access, video calls and somatic games. As of December 31, 2012, its multimedia home entertainment boxes had been sold to more than ten television network operators.
The Company competes with Irdeto Access B.V., Conax Company, Kudelski SA, Sumavision Technologies Co., Ltd. and DVN Holdings Ltd.
China Digital TV Holding Co Ltd
Jingmeng High-Tech Building B
4th Floor, No. 5
Shangdi East Road
BEIJING BEJ 100085