China Digital TV shipments lower than forecast

Rose Major

US-listed conditional access provider China Digital TV has issued a trading update – and the news is not good.

Despite a forecast of 2.35 million to 2.55 million smartcards due to be shipped in the second quarter of 2009, the company could only manage 2.13 million. Dong Li, China Digital TV’s president, blamed the shortfall on industry consolidation.

“Some cable operators have chosen to delay digitization projects due to uncertainties resulting from ongoing consolidation in the cable industry and the present lack of mature value-added services for digital TV platforms,” Dong Li said.

But the long-term forecast for the company remains good, the president insisted. “As China moves to government-mandated full digitization by 2015, we are confident that China Digital TV's experience in providing CA solutions for large and complex projects, stable financial position, existing partnerships with more than 200 cable television operators and leadership in value-added services development will position us to play a leading role in China's ongoing digital mass migration and beyond,” Dong Li added.

China Digital TV claims further that 12 out of a total of 18 new contracts to install CA systems in China in the second quarter went to it.