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South New Media Yao Juncheng: New Era - 2018 OTT Takes Advantage
On December 1st, the 5th China Internet Audiovisual Conference's Theme Forum—Internet TV Industry Summit took place in Chengdu. This event focused on the new development ideas and future directions of the Internet TV industry. With the theme of “New TV Value,†the forum aimed to foster intellectual exchange and innovation across the industry. During the meeting, Yao Juncheng, Senior Vice President of Southern New Media, delivered a keynote speech titled “The New Era, 2018 OTT Takes Advantage.â€
[Image: Yao Juncheng, Senior Vice President of Southern New Media]
The big screen is entering a new era. The number of large-screen TV users has grown rapidly, signaling an impending boom in the Daping market. In the first half of 2017, OTT users reached 390 million, making up 52% of the total. According to the China Electronic Information Industry Federation, while the PC internet market developed slowly, the mobile internet’s demographic dividend has faded. Meanwhile, the large-screen economy is experiencing rapid growth, with its market size expected to surpass that of mobile internet by 2018.
The three-screen user split reflects changes in how people spend their time and engage with media. As TV screens become more interactive and widely used, there is a return to living room culture and a higher demand for quality experiences. While cable TV user numbers remain stable, IPTV and OTT have driven overall growth in large-screen users.
OTT is leading the way into this new era. From 2011 to 2016, the industry transitioned from chaos to stability. By 2018–2020, the market is expected to see explosive growth, with OTT becoming the core of home entertainment. Regulatory efforts have evolved, including macro-level supervision, content control, and platform regulation. These measures have shaped the industry’s development trajectory.
Looking ahead, from 2017 to 2020, the market will move from small-scale growth to full-scale expansion. One key trend is the return to entertainment value. OTT enhances user experience through technologies like 4K/8K resolution, video games, and AI, enriching the living room experience. Content is becoming more diverse, high-quality, and specialized, supported by major players like BAT.
TV applications are also driving the revival of living room culture. Although OTT gaming is still in early stages, the growing number of active devices and improved hardware will attract more developers. Artificial intelligence is becoming standard, with voice recognition and smart home integration enhancing the user experience. 4K and 8K technologies are pushing the boundaries of visual quality, offering users an immersive viewing experience.
Another trend is the return to business value. With slow growth in PC and mobile markets, the big screen is emerging as a new commercial opportunity. OTT has successfully monetized through paid content and advertising, with significant revenue growth expected by 2020. Non-audio-visual applications are also gaining traction, opening new avenues for growth.
Southern New Media is leveraging these trends. Its platform offers high-quality services, secure broadcasting systems, and a reliable OS. It partners with top content providers and has a wide range of products and services. Through open cooperation and strategic investments, SNM is positioning itself at the forefront of the next generation of smart home technology.