Research On Digital TV Profit Model Of ZXWL Co., LTD.

Being a fully owned tier one subsidiary, ZXWL Application Service Provider (briefly ZX) is the core IT company of ZX group. With the support of parent company, the primary goal of ZX is to invest on cable television network in ten provinces in China and to become the biggest cable television network supplier in industry. In recent years, the company has invested more and more on digital television. It becomes a critical issue for the company to get recognition of the capital market and to promote the maximum value of investment in capital market. Therefore, it is the most important thing for the company to study the profitable model of the digital television business platform.In this paper, the fact that all digital TV providers are lack of profitable models has been explored. Based on characteristics of television, the theory of profitable model, the theory of Long Tail, and the theory of Value Chain have been studied. Three key elements of profitable model orientation, pricing and charging, and management style, all of which are described in detail in the paper, are defined.This paper has five parts.First of all, the research purpose, importance and methods of digital television profitable model are introduced. It pointed out that the competition among enterprises and companies are not one company or one linear value chain to another any more, but the competitions of profitable models based on the value networks, constructed by enterprises and their suppliers. The innovation of digital television profitable model has very important meanings for both theory and practice. The purpose of this research is to develop and design the profitable model for digital television providers based on the study of their present situation. Utilization of published research documents, social investigation and case study are the main research methods used.Secondly, the related research results of profitable model, digital television profitable model are described. Some concepts of profitable model are introduced. The present situation and characteristics of digital television profitable model combined with the digital television industry are explained.Thirdly, the three key elements of profitable model orientation, pricing and charging type, and management style are explored and designed.Finally, based on the theory in this paper and the three key elements of profitable model, the strategy and procedures of utilizing this profitable model are described.