Abstract
Cable TV with largest subscription base in pay TV market has difficulty in managing the task of digital switch over. This study analyzed the factors in delay of cable TV switch over and examined the impact of pay TV market structure and competition. The delaying factors turned out to be the lack of incentives and resources of cable TV operators, insufficient policy measures and acceptance tolerance issues of subscribers. Since cable TV operators with monopolistic status in pay TV market had continuous profit from analog service, they were not responsive to digital switch over which requires additional investment. Policy measures including support for the low income household and mandatory cut-off point for stopping analog broadcasting. Subscriber`s willingness to accept digital broadcasting in terms of price sensitivity and preference for convenient operation also played a role. Introduction of IPTV in pay TV market influenced the speed of digital switch over of cable TV operators. MSOs with economies of scale showed higher digital switch over rate than independent SO.
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