Saying Goodbye to "Nesting" Fees: Television Set-Top Boxes Embark on a New Era of Integrated Functionality

Saying Goodbye to "Nesting" Fees: Television Set-Top Boxes Embark on a New Era of Integrated FunctionalityOver the past decade, the rapid development of the internet has changed how people entertain themselves. Online streaming has gradually replaced traditional television, resulting in declining television viewership and a significant drop in sales

Saying Goodbye to "Nesting" Fees: Television Set-Top Boxes Embark on a New Era of Integrated Functionality

Over the past decade, the rapid development of the internet has changed how people entertain themselves. Online streaming has gradually replaced traditional television, resulting in declining television viewership and a significant drop in sales. To address this challenge, businesses have racked their brains to find ways to make money from consumer pockets, and various fees associated with set-top boxes have become one such method. Cluttered interfaces, endless subscription packages, and even deceptive consumption practices have greatly reduced the television viewing experience, leading users to refer to it as "nesting" fees. This practice not only adds to users' financial burden but also significantly impacts their viewing experience, particularly for elderly individuals and children who lack the ability to discern.

To address this issue, the National Radio and Television Administration of China (NRTA) has implemented a series of robust measures to promote the transformation of television set-top boxes toward integrated functionality and completely eliminate "nesting" fees.

1. Saying Goodbye to Startup Ads: Directly Enter Viewing Mode

In the past, turning on the television meant enduring tens of seconds of startup ads before reaching the home screen. Users could only passively watch, without any choice. Due to a lack of oversight, advertisers relentlessly extended ad times, exceeding consumer tolerance and driving many people away from television. To rectify this, the NRTA decided to address this issue and announced the complete elimination of startup ads for cable television and IPTV, allowing users to directly enter viewing mode without waiting through lengthy advertisements. Currently, over 90% of televisions nationwide have achieved this goal.

2. Simplifying Fee Structures: Breaking Free from the Burden of Subscription Packages

Another common issue with smart TVs is the proliferation of subscription packages. In the past, simply purchasing television channels allowed for free selection of desired programs. However, now watching live channels requires a keen eye to navigate through various sections and packages to find the correct channel. Moreover, problems related to duplicate charges under various names are prevalent. Before the crackdown, some televisions even had as many as 86 subscription packages. To resolve the public concern of "being bothered by watching television," the NRTA has issued relevant regulations to address this issue. Through optimizing fee structures, reducing unnecessary subscription packages, and implementing other measures, the aim is to lower users' financial burden. Current statistics indicate that after the crackdown, most smart TVs nationwide have achieved a reduction in subscription packages by over 50%. Television interfaces are now more streamlined, eliminating the need to download numerous applications or activate various memberships. All free and paid sections are now clearly organized. Furthermore, major smart TV brands have launched a completely free "Revisit Classics" section nationwide, allowing users to enjoy more free, high-quality content.

3. Simplifying Operating Procedures: Farewell to the Dual-Remote Era

The third issue with smart TVs is the "difficulty of watching television." Home smart TVs often come equipped with two remotes: one for controlling television channels and another for controlling the set-top box. The emergence of set-top boxes transformed televisions from mere signal receivers into intelligent terminals capable of network interaction. Users can not only watch various channels on television but also play games and even engage in online shopping. However, the increasing variety of functions has led to cumbersome operations and higher television costs.

To address this issue, the NRTA has proposed technological innovation by integrating set-top box functionality into televisions, achieving a seamless unification of the set-top box and television. This goal is currently being progressively realized. Reportedly, 8 types of plug-in miniature set-top boxes have been developed, successfully achieving miniaturization and concealment of the set-top box. Simultaneously, a new type of universal remote control has been invented, integrating infrared, Bluetooth, and Starlink technology. This allows users to effortlessly control all television and set-top box operations with just one remote, simplifying operational procedures and lowering the overall cost of televisions. This product is being progressively promoted in the market.

4. Reform Effectiveness: Enhanced User Experience, Television Industry Revival

The most evident outcome of these measures is a significant improvement in user experience. The elimination of startup ads and the reduction of subscription packages have prevented users from losing interest in turning on the television due to excessive ads and have safeguarded their finances. Meanwhile, the integration of set-top box functionality and the introduction of new universal remotes further simplify operational procedures, restoring television to its original convenience and purity.

A good user experience leads to strong product sales. Since the NRTA launched its dual-pronged governance campaign against "difficulty and annoyance in watching television," the user activity rate for live television channels has significantly increased. In August, the user activity rate for live television channels nationwide reached its peak in nearly three years. This indicates that user attention to live television channels is gradually recovering, and the television industry is gradually reviving, ushering in new opportunities.

5. Long-Term Outlook: A Win-Win for Users and Businesses, Promoting Joint Industry Prosperity

In the short term, the reduction in various fees has resulted in a decline in revenue for the television industry. Without sufficient profits, companies naturally lack the motivation to develop, and the industry's profits appear to be compromised, appearing as a "loss for oneself, benefit for others." However, this is because in the past, all industry players relied on charging fees. The higher the fees, the better the development. Without charging fees, profits would not be sufficient, leading to elimination and pushing the industry into a vicious cycle of bad money driving out good money. The NRTA's current measures have broken this cycle. Therefore, from a long-term perspective, this reform can be considered a "win-win" for both users and businesses. It not only resolves the issue of "nesting" fees that users have strongly protested but also promotes the healthy development of the television industry. By optimizing fee structures and enhancing user experience, the television industry has the potential to attract more users to return and achieve sustained growth.

After all, practices like forced startup ads and duplicate charges harm consumer patience and goodwill. Compared to more portable devices like mobile phones, tablets, and computers, televisions offer no significant advantage beyond a larger screen. To secure a place in the increasingly fierce competition for user time and attention, televisions must be sufficiently straightforward and convenient. If these issues persist, televisions risk being completely abandoned by users, rendering profit impossible.

6. Opportunities and Challenges: Overcoming Obstacles Together to Promote the Healthy Development of the Television Industry

While this reform presents new opportunities for the television industry, new challenges are also emerging, requiring concerted efforts from both inside and outside the industry to address.

a. Technological Integration Challenges: Integrating set-top box functionality into televisions requires addressing compatibility issues between different brands and models of televisions and set-top boxes. Without resolving technological issues, any future aspirations will remain mere fantasies. To tackle this, television manufacturers, operators, and technology providers must collaborate closely to establish unified technical standards and interface specifications.

b. Copyright Protection Challenges: In the process of promoting integrated set-top box functionality, ensuring effective protection of content copyrights and preventing piracy and illegal distribution is a challenge the industry must face.

c. Cultivating User Habits: Smart televisions have been around for years, and users have become accustomed to using multiple remotes and navigating complex interfaces. Subtly encouraging users to adopt new habits will require significant effort.

d. Regional Development Imbalances: China is a vast country with disparities in economic development and informationization levels between different regions. In implementing the integration of television set-top box functionality, these differences must be considered to ensure that the benefits of reform reach users in rural and remote areas.

To address these issues, regulatory agencies, industry associations, and businesses should strengthen collaboration to drive the integration of television set-top box functionality. Through the development of relevant policies, standards, and regulations, the healthy development of the industry can be steered.

7. Future Outlook: Diversification, Intelligence, and Integration

This reform's impact is multifaceted. We have reason to believe that the television industry will exhibit a trend of greater diversification, intelligence, and integration in the future. The television industry will also witness a healthier, more prosperous development trajectory. Simultaneously, we anticipate that major television stations and video platforms will introduce more high-quality programs to meet the viewing needs of a wide audience.

Summary:

To promote the healthy development of the television industry, the National Radio and Television Administration of China has launched a major reform of television set-top boxes. Through the complete elimination of "nesting" fees, the promotion of integrated set-top box functionality, and the standardization of remote control technology, the NRTA has significantly enhanced user viewing experience, reduced user financial burden, and attracted a significant number of users back to home television, leading to a marked increase in television channel viewership. At the same time, the television industry is stepping up efforts to introduce a wealth of high-quality free content to retain users. In the future, the television industry is poised for robust growth.

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