Artificial intelligence is rewriting the rules of the video industry. From personalized recommendations to real-time translations, AI has reshaped how audiences consume, interact with, and value content. For operators, however, this transformation has brought not only opportunity but also profound challenges. At IBC 2025, ZTE showcased its latest innovations designed to help operators turn these challenges into growth.
By Shi Jun, Director of CPE & STB Products Marketing and Solution Team at ZTE
The Triple Challenge: Demand, Ecosystem, and Business Models
The first challenge is what I call demand evolution. Consumers today are no longer satisfied with simply turning on a television. Younger audiences gravitate toward short videos and interactive gaming, while older viewers want simplified one-click operation. In multilingual households, real-time translation is becoming essential. And expectations for video quality, audio fidelity, and responsiveness continue to rise. According to industry data, daily leisure time averages just six hours. Within that window, long-form streaming, shorts, games, and live content all compete fiercely for user attention.
Second is ecosystem pressure. Streaming giants like Netflix and Disney+ deploy AI to tailor experiences and offer competitive ad-supported packages. Meanwhile, platforms like YouTube and TikTok bypass traditional operators altogether, reaching users directly through mobile and smart TVs. Even device manufacturers are embedding AI features such as 4K upscaling and voice control into hardware, further compressing operators’ role in the value chain.
Third comes business model stress. Traditional subscription revenue is under siege. Free and ad-supported models, revenue-sharing arrangements, and pay-per-view options are reshaping consumer expectations. Operators face declining user activity—63% of churn is attributed to "insufficient content"—even as customer acquisition costs rise and ARPU stagnates.
The conclusion is clear: operators can no longer rely on legacy approaches. Success requires simultaneous transformation in technology, user experience, and business models.
ZTE’s Answer: AI in Frames, Triple Growth Engines
At IBC 2025, ZTE introduced its vision of "AI in Frames, Triple Growth Engines." The idea is to transform every frame of the screen into three growth drivers: Acquisition, Activation, and Acceleration.
Engine 1: Acquisition – Driving User Growth
ZTE is unique in offering end-to-end solutions spanning network access, terminals, set-top boxes, and video platforms. This integration allows operators to lower entry barriers and explore new revenue models.
In Indonesia, for example, ZTE partnered with MyRepublic and MetaX to launch a zero-cost FAST TV solution. Operators gain access to 90+ live channels without upfront investment, monetizing instead through ad revenue sharing. For emerging markets, this model provides a sustainable path to profitability.
ZTE also unveiled its Multi-Screen AI Video Solution, which enables seamless experiences across TV, mobile, and tablet. With Thailand’s AIS, this solution powers the AIS Play app, offering live streaming, time-shift playback, thumbnail previews, and PPV, all synchronized across devices.
At the foundation lies connectivity. ZTE’s Wi-Fi 7 BE19000 ONT, capable of 14.56Gbps, is the fastest in the industry, ensuring ultra-low latency and supporting bandwidth-heavy applications such as 8K streaming and VR/AR. This positions operators to deliver premium connectivity as a baseline experience.
Engine 2: Activation – Enhancing User Experience
Beyond acquiring users, operators must reactivate the value of the big screen. ZTE leverages AI to enrich set-top boxes with new capabilities.
The AI fitness ring transforms the TV into a motion-sensing workout device. The 4K AI Smart Box, co-developed with Quantis, uses AI-SR to instantly upscale content to near-4K quality. The AI Computing Host converts TVs into smart hubs for digital human interaction, 360° monitoring, and video calls.
For enterprise users, the AI-Powered Video Conference Board integrates a quad-lens system, 16-microphone array, and Tianlai audio algorithm. Compatible with platforms like Zoom and Teams, it enhances big-screen applications beyond entertainment into professional collaboration.
Engine 3: Acceleration – Expanding Value Boundaries
2025 marks the first commercial year of AI agents, shifting the value proposition from tools to outcomes. ZTE is pioneering this shift with products like SmartView, a five-in-one device combining set-top box, speaker, touchscreen, camera, and telephone. By serving as a unified portal for entertainment, communication, and security, SmartView opens new service opportunities across smart home ecosystems.
Equally transformative is the ZBOT AI home companion robot. Acting as guardian, playmate, and life partner, ZBOT adds emotional and educational dimensions to smart home services. Through interactive storytelling, health monitoring, and companionship, it helps operators monetize beyond traditional connectivity.
Together, these three engines form a closed growth loop: acquisition lowers customer costs, activation increases stickiness, and acceleration extends service value.
AI at Home: From Connection to Companionship
ZTE’s vision for AI extends deeply into the smart home. The focus is on evolving from passive device connectivity to proactive intelligent services that understand, accompany, and protect users.
For families, AI delivers real-time translation for children’s programs, instant voice commands for FAST access, and karaoke-ready social experiences. For network optimization, AI powers on-demand "Worry-Free Internet" packages, remote diagnostics, and Wi-Fi heat maps, reducing churn and maintenance costs.
For children, ZBOT provides interactive learning and play. For seniors, SmartView and AI Computing Hosts enable simplified interfaces and real-time safety monitoring. For young professionals, AI agents orchestrate seamless device transitions, blending work and entertainment into fluid experiences.
In short, ZTE is positioning AI not as a feature but as the core fabric of the smart home.
Core Advantages in a Competitive Market
What sets ZTE apart is the ability to integrate the full stack of network access, terminals, set-top boxes, and video platforms—a rare capability in the industry.
- Scale and Ecosystem Leadership: ZTE holds a 20% share of the global IP set-top box market, with shipments exceeding 20 million units and annual production capacity above 100 million. As a Netflix Hailstorm core member, ZTE has shipped 18 million Netflix-certified boxes with a 100% first-time pass rate for Google Android TV certification.
- Product Innovation: From SmartView to AI-Powered Video Conference Boards, ZTE consistently pioneers differentiated devices that open new use cases.
- Technology Breakthroughs: With leading-edge AI chipsets, Wi-Fi 7 speeds of 14.56Gbps, and advanced audio algorithms, ZTE delivers unmatched performance.
These strengths ensure that ZTE is not just keeping pace but setting the pace in the global video terminal industry.
