Internet TV's Appearance of "Winter" Should Seek New Exports
According to AVC's monitoring data, during the Spring Festival promotion of the Year of the Monkey, the domestic color TV market declined slightly by 2.1%; in 2015, the number of retail sales on the color cable market was 13.02 million units, an increase of 65% year-on-year, accounting for 28% of the market. %, and sales of large-size TVs continue to climb.
However, the retail volume in the offline market was 33.73 million units, down 8% year-on-year. Online sales channels have become the main sales force. Although local color TV companies have set foot on the Internet, the pressure on the overall environment remains. The proliferation of Internet brought about by the demographic dividend will not continue.
The competition of internet television is gradually increasing
Since the 1980s, "watching TV" has incorporated the lives of hundreds of millions of people. Once television was listed as one of the "three majors." In recent years, with the influx of smart phones, cable television is facing a huge crisis, and the ever-declining TV “running rate†is the most obvious proof.
However, with the infusion of the Internet and smart elements, Internet television, which focuses more on viewing comfort, program viewing convenience, intelligence, and networking, is pulling people back into the living room's television.
The internet companies that dominate this revolution in the living room are well aware of Internet thinking. They sell everything from selling content to selling software and selling services. As early as 2013, LeTV launched its own brand of super TV. Its approach is to create a vertical industry chain of “content+terminal+application+platformâ€.
Xiaomi extends from the mobile phone to the smart home industry chain such as televisions, air purifiers, and smart air conditioners. The storm is improving the production chain, content playback, production and manufacturing, sales and distribution, and after-sales service industries to create an entertainment ecosystem.
Today, new Internet brands continue to flood the television field, such as popular television, micro-whale TV, etc. So far, the number of domestic Internet TV brands has increased to 13, and there are latecomers.
This new type of interactive TV experience has won a huge market for Internet TV. Relevant data show that in the first three quarters of this year, domestic Internet TV accounted for 9%, compared with 3% in the same period of last year. Some agencies expect that in 2016 Internet TV sales will reach 10.1 million units, and the share will reach 22%.
In fact, the color TV market in China already belongs to the stock market. In one year, the sales volume of color TVs is about 40 million units. In the past two years, the capacity of the market is still shrinking. After more and more Internet TV companies, the market competition Difficulties have also increased, and the pressure on companies is even greater.
Internet TV low price should continue to open the hardware high-end
The vast majority of Internet brands think of the color TV market as overly optimistic. After more and more Internet TV companies, the difficulty of market competition has also increased, and companies have greater pressure to survive.
Internet TV wants to survive by grabbing the market share of competitors, but not all companies can burn money like LeTV. Cool open brand is also relying on Skyworth's strong support behind it, and low-price competition can not be repeated. Win the market. The price war has become increasingly fierce, and the method of opting for profit on the hardware has basically become a tough end.
Recently, several newly launched Internet TV brands have basically kept prices at the lowest level in terms of their hardware configuration. Looking back, LeTV, Storm TV and Xiaomi TV and other brands are relying on content payment to make money. Whoever has a better program source and whose source content is more “magnificentâ€.
According to Lu Jiebo, deputy secretary-general of the China Electronic Chamber of Commerce, after the Internet TV entered the TV industry with ultra-low hardware prices, the traditional TV companies' products could not compete on price, and the latter eventually chose to launch their own Internet TV brands to compete, including Skyworth, TCL, Hisense and other TV giants have launched their own brand of Internet TV.
For Internet TV, an important step now is the further high-end hardware. No hardware benefits, but high-end hardware, such as 55+, ultra-thin, curved surface, high color gamut, OLED and other features and functions will become "standard", in order to differentiate the content on the basis of hardware.
Internet content quality still needs to check content + hardware into future development "package"
According to the China Internet Network Information Center (CNNIC)'s latest statistics report on China's Internet development, 80.4% of Internet TV users used the on-demand feature last year, but only 36.3% of users frequently use on-demand services. This means that most users of Internet TV in China have not yet formed a payment habit.
The main profit model of the Internet TV industry is "service payment + advertising revenue." According to statistics, the value of Internet TV payment is at least 10 billion yuan per year, which is much higher than the advertising revenue of video websites. Globally, 61% of its Internet TV revenue is paid, which is also the source of 40% of European Internet TV revenue.
Since the current Internet content is mixed, many content that is "profitable" is merely a collection of free content. Many of the high quality users require cannot be satisfied on the basis of payment.
Then, where does the high-quality content that users want come from? At present, there are three ways for domestic Internet companies.
One is to buy. However, due to the lack of copyright pricing mechanism and fair trading platform at this stage, high-quality variety shows, movies, and TV programs are all priced by themselves. This has caused some Internet companies to even fight for copyright.
The second is cooperation. The current related media businesses of Internet TV, such as movies and television dramas, are all attached to traditional media or the Internet. However, whether these resources are legal, whether they are granted copyright, and whether copyright disputes are caused are all unknown.
The third is self-control. Due to limited capabilities, the quantity and quality in this area are currently difficult to meet user requirements.
Judging from the current situation, establishing and improving the legal system of Internet TV supervision is the key point, so that the existing terms, regulations, and rules can have a systematic, authoritative, and systematic framework.
Internet TV is claiming to rely on content to make money. In the future, the software-subsidized hardware model will become the mainstream. Industry watcher Liang Zhenpeng analyzed: “When negative-sale TVs are sold to a certain amount, relying on the profit-making mode of content, profits and losses will reach a balance and gradually realize profitability.†How to make more healthy, high-quality content, Perhaps the next step that Internet TV operators need to focus on.
While focusing on improving the quality of content, it is also necessary to improve the quality of hardware and combine high-quality content with hardware. This is the future direction of Internet TV, and blindly attaching importance to hardware or content can hardly sustain the company's progress.
However, the retail volume in the offline market was 33.73 million units, down 8% year-on-year. Online sales channels have become the main sales force. Although local color TV companies have set foot on the Internet, the pressure on the overall environment remains. The proliferation of Internet brought about by the demographic dividend will not continue.
The competition of internet television is gradually increasing
Since the 1980s, "watching TV" has incorporated the lives of hundreds of millions of people. Once television was listed as one of the "three majors." In recent years, with the influx of smart phones, cable television is facing a huge crisis, and the ever-declining TV “running rate†is the most obvious proof.
However, with the infusion of the Internet and smart elements, Internet television, which focuses more on viewing comfort, program viewing convenience, intelligence, and networking, is pulling people back into the living room's television.
The internet companies that dominate this revolution in the living room are well aware of Internet thinking. They sell everything from selling content to selling software and selling services. As early as 2013, LeTV launched its own brand of super TV. Its approach is to create a vertical industry chain of “content+terminal+application+platformâ€.
Xiaomi extends from the mobile phone to the smart home industry chain such as televisions, air purifiers, and smart air conditioners. The storm is improving the production chain, content playback, production and manufacturing, sales and distribution, and after-sales service industries to create an entertainment ecosystem.
Today, new Internet brands continue to flood the television field, such as popular television, micro-whale TV, etc. So far, the number of domestic Internet TV brands has increased to 13, and there are latecomers.
This new type of interactive TV experience has won a huge market for Internet TV. Relevant data show that in the first three quarters of this year, domestic Internet TV accounted for 9%, compared with 3% in the same period of last year. Some agencies expect that in 2016 Internet TV sales will reach 10.1 million units, and the share will reach 22%.
In fact, the color TV market in China already belongs to the stock market. In one year, the sales volume of color TVs is about 40 million units. In the past two years, the capacity of the market is still shrinking. After more and more Internet TV companies, the market competition Difficulties have also increased, and the pressure on companies is even greater.
Internet TV low price should continue to open the hardware high-end
The vast majority of Internet brands think of the color TV market as overly optimistic. After more and more Internet TV companies, the difficulty of market competition has also increased, and companies have greater pressure to survive.
Internet TV wants to survive by grabbing the market share of competitors, but not all companies can burn money like LeTV. Cool open brand is also relying on Skyworth's strong support behind it, and low-price competition can not be repeated. Win the market. The price war has become increasingly fierce, and the method of opting for profit on the hardware has basically become a tough end.
Recently, several newly launched Internet TV brands have basically kept prices at the lowest level in terms of their hardware configuration. Looking back, LeTV, Storm TV and Xiaomi TV and other brands are relying on content payment to make money. Whoever has a better program source and whose source content is more “magnificentâ€.
According to Lu Jiebo, deputy secretary-general of the China Electronic Chamber of Commerce, after the Internet TV entered the TV industry with ultra-low hardware prices, the traditional TV companies' products could not compete on price, and the latter eventually chose to launch their own Internet TV brands to compete, including Skyworth, TCL, Hisense and other TV giants have launched their own brand of Internet TV.
For Internet TV, an important step now is the further high-end hardware. No hardware benefits, but high-end hardware, such as 55+, ultra-thin, curved surface, high color gamut, OLED and other features and functions will become "standard", in order to differentiate the content on the basis of hardware.
Internet content quality still needs to check content + hardware into future development "package"
According to the China Internet Network Information Center (CNNIC)'s latest statistics report on China's Internet development, 80.4% of Internet TV users used the on-demand feature last year, but only 36.3% of users frequently use on-demand services. This means that most users of Internet TV in China have not yet formed a payment habit.
The main profit model of the Internet TV industry is "service payment + advertising revenue." According to statistics, the value of Internet TV payment is at least 10 billion yuan per year, which is much higher than the advertising revenue of video websites. Globally, 61% of its Internet TV revenue is paid, which is also the source of 40% of European Internet TV revenue.
Since the current Internet content is mixed, many content that is "profitable" is merely a collection of free content. Many of the high quality users require cannot be satisfied on the basis of payment.
Then, where does the high-quality content that users want come from? At present, there are three ways for domestic Internet companies.
One is to buy. However, due to the lack of copyright pricing mechanism and fair trading platform at this stage, high-quality variety shows, movies, and TV programs are all priced by themselves. This has caused some Internet companies to even fight for copyright.
The second is cooperation. The current related media businesses of Internet TV, such as movies and television dramas, are all attached to traditional media or the Internet. However, whether these resources are legal, whether they are granted copyright, and whether copyright disputes are caused are all unknown.
The third is self-control. Due to limited capabilities, the quantity and quality in this area are currently difficult to meet user requirements.
Judging from the current situation, establishing and improving the legal system of Internet TV supervision is the key point, so that the existing terms, regulations, and rules can have a systematic, authoritative, and systematic framework.
Internet TV is claiming to rely on content to make money. In the future, the software-subsidized hardware model will become the mainstream. Industry watcher Liang Zhenpeng analyzed: “When negative-sale TVs are sold to a certain amount, relying on the profit-making mode of content, profits and losses will reach a balance and gradually realize profitability.†How to make more healthy, high-quality content, Perhaps the next step that Internet TV operators need to focus on.
While focusing on improving the quality of content, it is also necessary to improve the quality of hardware and combine high-quality content with hardware. This is the future direction of Internet TV, and blindly attaching importance to hardware or content can hardly sustain the company's progress.