Domestic TV industry lifts wave again

Let’s see this as the long-established “thrower” who has officially released a long-brewed super TV product. As a result of the immediate reaction in the capital market, LeTV’s share price has continued to climb. Hisense, TCL and Skyworth’s share prices in the first camp of the domestic TV market have collectively declined.

What makes traditional TV companies uneasy is not music as the product itself. Instead, it breaks the marketing model in which color TV companies continue to rely on hardware for more than 20 years. This kind of internet thinking model that relies on content gains and depends on social marketing is like giving intelligence. The television industry tore a small hole. Who will be the next "intruder"? What new subversion will happen? Traditional TV companies have realized potential threats.

By using intelligence, new applications have emerged in the TV industry chain. The emergence of IT, video, voice, and games has given televisions increasingly richer attributes in the media, the Internet, and IT. The television industry has also started The vertical industry chain between the panel and chip to the upstream and downstream of the machine extends a new horizontal industry chain from operations, solutions, and platform design.

Everyone has the opportunity to become a new king across two industry chains, and each prince has also started a new round of melee.

Intruder spoils

At present, the television industry has not yet formed sufficient competition, and market brands have not formed a monopoly. According to the market share of TV companies in the past three years, the top six television brands Hisense, Skyworth, TCL, Changhong, Konka and Haier have a small market share, and they all remained at 10%-12%.

In addition, since the emergence of Internet TV in today's smart TVs in 2009, televisions have extended from simple displays to "displays + back-end processors," allowing a group of content providers and operators to see opportunities and more room for imagination. Attracted Lenovo, LeTV, excellent friends Pollock, millet and other companies have joined the television's "touch net" action.

Smart TV seems to outline a perfect picture for everyone. Web search, games, social networking, video on demand, and other applications based on mobile entertainment, information and other applications have appeared in the TV.

This makes the new "invaders" have reason to believe that in the future TV sets will have new shuffles and they will begin to lay out in advance. Excellent friends, Pule, South Media and Skyworth cooperated to open the “Direct Hollywood” section on the TV to realize the payment of video on the TV; Lenovo and Shanghai Wenguang established the Vision Cloud Company to collect video program content specifically for the Lenovo Smart TV. And optimization; Leshi is directly to the TV company's new identity, through the content and new channels to break the original TV business model; Xiaomi through the TV box curve to enter this field......

This directly changed the expectation of television sales. TVs no longer benefit from traditional offline sales. Enterprises with Internet genes are constantly impacting existing business models.

Jia Yueting, Chairman and CEO of LeTV, once interviewed by the media, said: “Traditional enterprise product price = product cost + product gross profit + operating cost + marketing cost + channel cost + brand premium. Super TV is based on LeTV.com's massive users. Marketing adopts the CP2C model (crowdfunding marketing), which is no longer a product to attract customers to the market, but order-driven productivity."

Similarly, Xiaomi, who also cuts into smartphones and TVs through hunger and thirst marketing and internet thinking, said that the relevant person responsible for the TV set-top box business indicated to Tencent Technology that he did not discuss LeTV products themselves, and that the joining of Internet companies directly changed TV. Another new ecological system is built.

This change is similar to the mobile phone entering the smart, the industrial structure gradually disrupted. “The era of discourse rights previously dominated by hardware manufacturing and upstream control will change, and the future will be more of an era when user experience is king.” Wen Jianping, senior vice president of AVC Consulting, believes that this is the current advantage of Internet companies. .

Tripartite melee

At the time of the storm, as a traditional TV company, they will not be willing to give way to the market that has been working for years. When there are only a few tens of thousands of Internet companies in scale. Everything is still based on the user's scale.

“We have terminals. The terminal is a very powerful resource. Last year, Skyworth sold 8.6 million units domestically and added 2 million TV users last year.” Liu Weizhi, president of the color TV business division of Skyworth Group, believes that the number of users is sufficient to counter the “outsiders”. "The impact of an insurmountable fact.

At present, these Internet and content parties want to participate, they need to cooperate more with color TV companies, and single-handedly will usher in more or more opportunities for cooperation.

For LeTV and the "invaders" that will emerge in the future, traditional TV companies will position them as "spoilers" rather than the mainstream. This has exacerbated the game between color TV companies, content providers and operators. An TV operator accepted an interview with Tencent Technology. "Looked at previously as a partner of Skyworth, TCL and other companies, this may well become a mutually exclusive enemy."

The intention of traditional TV companies is to expect to become the main body of the integrated smart TV industry chain in advance by mastering the TV terminal user base. Skyworth, Hisense, TCL, etc. have already stated more than once that they must transition to “content + terminal + application + platform”. For even larger players, Samsung has already had an intention to build an operating system for smart TVs by itself, as early as before Apple has entered the smart TV.

Before grasping the core position of the smart TV industry chain and appearing as a new king. Whether it is the vertical industrial chain that represents manufacturing companies or the Internet companies that represent horizontal industries, they use “self-centered” to maximize their profits.

Lack of application

However, smart TVs are shaved off. Data show that in 2012 China's smart TV sales reached 8 million units, accounting for only 27% of flat-panel TVs, the average activation rate of smart TVs is only 27.5%.

"At the end of last year, we found that some smart TV applications had a zero download rate. TV users would never turn pages on their TVs. Smart TVs would copy the applications on mobile phones, making the user experience very poor." Someone who was responsible for the operation of China Smart TV APP in Samsung revealed to Tencent Technology.

This also enabled smart TV companies to start adjusting their strategies in 2013, optimizing the smart TV UI, making remote controls simpler, and starting to use video as the center.

However, TV users are not caught in the cold. According to a survey by Tencent Technology, it was found that the smart TV user base cannot support the operating costs of APP, and it is difficult to attract more developers to develop applications for TVs, or to attract such excellent Internet companies as Baidu and Tencent to join.

"These Internet companies are basically rejected. The best result of the negotiations is that they provide an open interface for us to develop." Even with the secondary development of these Internet applications, television companies also believe that this is not worth the money.

What Internet companies are more worried about is that televisions, as an important propaganda field in the ideological field, are at the initial stage of smart TVs. Any content or model has potential risks before it is judged as a business opportunity.

At present, there is no virtuous circle that can shake the horizontal industrial chain of smart TVs. In the trend of television media and Internet properties becoming more and more concentrated, the smart TV industry will have more bundled cooperation in different industrial chains with complementary advantages. In the process, the number of TV companies will be compressed and the brands will be divided, but it is difficult to subvert or replace them.