As the worlds of broadcasting and telecommunications move towards convergence, SMG is expanding to meet the emerging opportunities of the digital media sector. Earlier this year, SMG made its intentions quite clear: “The aim is to make Shanghai the biggest IPTV network in the world”, said DaZhong Zhang, VP – Shanghai Media Group and CEO of the IPTV venture. BesTV’s Chief Operating Officer Huaiyu Li told Television Asia: “We are currently offering these services in Shanghai and Harbin. The customer base has crossed 350,000-mark recently (after its launch in September last year).” SMG is currently the major player in the segment. SMG has deployed IPTV over China Telecom’s infrastructure in Shanghai and in Harbin, to the north, it is partnering China Netcom for the same service. According to Analysys International, the total number of IPTV users had reached 612,000 by the first quarter of 2007 in China, increasing 36.3% quarter-on-quarter. “Currently, there are a number of smaller cities where trials are going on. It is not always clear how many are real commercial subscribers and who gets it for free and who is under trial etc,” said Li.