China Digital Media says it has reached a record level of households in Nanhai that have installed a digital set-top box (STB).

As of September 30, 2005, more than 120,000 households have installed the Internet equipment, with over 20% subscribing to receive premium packages of television broadcasting and additional digital STBs.

The company receives a portion of the subscription fees from each customer. The company expects to add another

30,000 digital STB subscribers in the fourth quarter.

Recently, the company announced the launch of a trial for a new IP-based STB in Nanhai with 400,000 Cable TV subscribers.

The company is one of the first digital TV operators in China to deploy the trial of IP-based STB with its high-end users. The new STB in trial is equipped with an Ethernet port which could facilitate various Internet-based services to end users such as video-on-demand, online shopping channels, online games and interactive education services.