Profile: China Digital TV Holding Co Ltd (STV.N)
30 Jan 2015
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 (PRC) digital television market. As of December 31, 2013, the Company had installed CA systems at 408 digital television network operators in 31 provinces in the PRC. CDTV Holding also sells digital television application software such as electronic program guides (EPG) and subscriber management systems (SMS) to digital television network operators. The Company also develops and commercializes solutions and products, including value-added digital television services, cloud computing technology-based digital video delivery solutions and advanced digital television terminals. CDTV Holding also installs CA systems in countries such as Thailand, Myanmar, India and Venezuela. 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.
CA systems consist of software that is installed at the premises of the television network operator (the head end), software that is installed in a set-top box at the subscriber’s end (terminal end) and smart cards that 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 vendors. 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. CA systems also support 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 blueprints, and then are encoded by the Company on its premises with security codes unique to each customer. CDTV Holding forwards the chips to smart card manufacturers in the PRC, 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. Head-end software also includes simulcryption software that allows network operators to install parallel CA systems from multiple vendors and transmit the programs to some subscribers using one CA system’s security codes and to other subscribers using another CA system’s security codes. 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 the Company to license its terminal-end software for using in manufacturing processes so that set-top boxes can be used on the planned network.
CDTV Holding’s digital television application software for television network operators includes SMSs and EPGs. The Company produces SMS software, which can be used by television network operators to reduce the cost and improve the efficiency of its subscriber management. 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. The Company’s EPG is a software application that 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, 2013, EPG software had been installed by over 200 television network operators.
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 tothe Company'sspecifications 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.
The Company competes with Irdeto Access B.V., NDS Limited, 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