Declining Chinese DVD Player Industry

The bankruptcy of Jiang Kui, the reorganization of the new section, the exit of the backgammon, and the decline of Ai Duo's ... In the past few years, when China's DVD player companies sought independent innovation and development from a large number of product standards such as VCDs and DVDs to EVDs, CBHDs, etc., Ignoring the concern for changes in consumer demand, the research on related industries in the Internet era eventually led the entire DVD player industry to fall into the predicament of development.

Recently, the global video industry giant Kodak's bankruptcy plight triggered a renewed debate in the Chinese business community. With the development of VCD, DVD, EVD transformation, and CBHD breakthrough, the Chinese DVD player industry has been under the impact of IT internet technology in recent years. In the dying struggle of the cliff that is annihilated by the entire industry, the survival status and development prospects of the relevant leading companies are rather embarrassing.

At the beginning of 2012, the former Chinese video game giant Shinco suddenly reported the news of “bankruptcy and reorganization”. As the dominant DVD player, Shinco opened the era of EVD and CBHD, but it was unable to quickly emerge from the main player industry. The performance of the encounter was bleak. As early as in 2009, Zhenjiang Jiangkui, who was a Chinese exporter of CD players, officially declared bankruptcy. He was the largest DVD player manufacturer in the United States when Wal-Mart sold the DVD player and created an industry record of 400,000 DVDs for 10 days. Earlier, in the VCD and DVD era, Backgammon, who was comparable to the newcomer in the era of DVDs, quietly withdrew from the DVD player market and entered non-related industries such as mobile phones, small home appliances, and educational video machines.

The famous DVD players, such as Ai Duo, Kim Jung, and SVA, have been out of the market for many years. Even Hitachi, IBM, Matsushita Electric Industrial Co., Ltd., Mitsubishi Electric, Toshiba, and JVC, members of the worldwide 6C patent alliance of the DVD industry, all withdrew from the competition of mainstream DVD players worldwide. The shrinking global player market has been deprived of the entry of a new army in the industry over the years. A large number of companies have either switched to other industries or closed their doors, or quietly withdrew, and are listed in the sunset industry that is not favored by investors.

Once popular, the Blu-ray (BD) disc drive companies headed by Sony, Panasonic, Philips, and LG have all developed DVD players as part of the 3D high-definition audio and video industry chain. Key end market expansion. The "China Enterprise News" reporter learned that in the past two years, the price of the Blu-ray disc drive in China has been declining all the way, from 5,000 yuan, 3,000 yuan, 2,000 yuan, to breaking the 1,000 yuan mark, but it has not been able to achieve rapid popularity in the domestic market.

During the Spring Festival this year, a record price of a Blu-ray Disc player at Hualu dropped to more than 700 yuan, which is basically equivalent to the price of a normal DVD. However, it failed to achieve the effect of the popularization of the price of DVDs launched by Shinco and Backgammon. In response, Bai Weimin, secretary-general of the China Electronics Video Industry Association, pointed out: "Today, consumers have too many channels for accessing content, especially the impact of Internet downloads. Consumers are not buying DVDs."

However, more than 10 years ago, the DVD player business was the most profitable company in the field of all consumer electronics products in China, with the best market sales and the most vigorous development. Statistics from the Ministry of Information Industry in 2001 showed that since 1996, the domestic VCD market has experienced explosive growth, increasing from 600,000 units in 1995 to more than 6 million units in 1996. DVD players entered China in 1996 and by the year 2000, the market sales volume will reach 3.5 million units.

From 1998 to 2000, Aiduo and Backgammon DVD players have occupied the prime position of CCTV's prime time ads. In 1998, Aiduo became a standard king with 210 million yuan; in 1999, it was the new standard king with 159 million step by step; in 2000, it was back with 126 million yuan. This is enough to prove that the DVD player manufacturing company profitable, and that period of time is also the golden stage of the development of the industry.

Just a few years later, Backgammon completely withdrew from the DVD player industry and entered new areas such as mobile phones, educational video machines, and small home appliances that were not favored by people at the time. Ever loved to be tit for tat with the backgammon in the market, and quickly got squeezed out of the mainstream in the video player market and became a brand leasing company. At that time, there was only a new section on the market. The EVD with its own technical standards was used to contend with foreign companies' patent fees on DVDs, and later launched the CBHD standard against foreign BD standards. However, as the entire DVD player market has entered a period of recession, and market cakes have been continuously squeezed by products such as network players, new divisions based on DVD player companies have become inevitable as market performance worsens.

Helpless struggle In recent years, with the advent of a series of new products and new industries such as video websites, Internet TV, mobile players, and personal tablet PCs, it has quickly caused a "destructive" impact on the traditional DVD player industry. Bai Weimin admits, "In the Internet age, consumers enjoy more and more high-definition video channels, the market status and consumer demand determine the Blu-ray player in the Chinese DVD player market can no longer repeat the DVD era of glory."

With more and more personal multimedia entertainment terminals, and the rapid spread of Internet technology, it was once a video player for people to obtain audio and video entertainment programs. In the background of the Internet era, continuous technological upgrading has reached the “end” of industrial development. . The "China Enterprise News" reporter learned that since 2009, Sony, Panasonic and other companies have used the industry trend of 3D waves to promote the promotion of 3D high-definition Blu-ray players in the market, but they have encountered the "Waterloo" market.

In 2009, the International Blu-ray Disc Association announced plans to integrate 3D technology into the Blu-ray Disc format, and at the end of the year developed the Blu-ray 3D industry standard. According to Tang Bin, Secretary-General of China 3D Industry Alliance, “Blu-ray 3D has to solve problems such as health and comfort. The development of 3D content can not be simply pursuing novelty and shock, but also consider human comfort, and shoddy 3D products that harm human health. We must crack down on it."

In the view of senior industry observers in Puritanism, “the player’s product technology still has room for upgrading, but in terms of product features and market culture, it faces new technologies in the Internet era, such as tablet PCs, Internet TV, and video websites. When the product was impacted, due to the slow development of product application functions, single entertainment functions, and lagging in the development of new functions, it eventually fell on the doorstep of the audio and video entertainment consumer outbreak.

In the past few years, when China’s DVD players sought independent innovation and development from a large number of product standards such as VCDs and DVDs to EVDs and CBHDs, they ignored the attention to changes in consumer demand, and the research on related industries in the Internet age finally gave way. The entire DVD player industry has fallen into the dilemma of development.

Jiang Kui's bankruptcy, the reorganization of the new section, the backgammon's withdrawal, the fall of love and more, this bleak status of the large number of Chinese video player giants, is not a lack of technological innovation capabilities, not to lack the judgment and grasp of the industry's future development trends, the key It is the development of the entire DVD player industry that, under the impact of a series of technological waves, lost its own development direction, and thus fell into a blind alley of its own development, indirectly contributing to the rise of emerging players such as web players and video websites.

Professor Qiao Xinsheng of Zhongnan University of Economics and Law pointed out that “the highest level of competition among enterprises is not capital competition but cultural competition. When culture and modern technology are organically combined and transformed into practical products, enterprises can establish Invincible."