Internet TV prices are buying people's hearts, but the "bone spot" has not been solved yet
In recent years, after experiencing great ups and downs, Internet TV has gradually begun to develop steadily. Under the calm surface, undercurrents are still surging, and competition among major brands has not ceased. For example, Hisense, which invested heavily in advertising at the World Cup; LeTV, which created another brand that hopes to usher in the second spring; and Skyworth, which has recently been fighting with Pinduoduo in rights protection, also launched the latest flagship product S9A, which once again upgraded the living room. Movie viewing experience; including Konka Group's acquisition of all shares of Xinfei Home Appliances Co., Ltd. for 455 million yuan, expansion of the industrial scale in the white power field, and so on.
Nowadays, after many rounds of fighting, Internet TV has become more rational and has entered a red sea market that is difficult to break. At the moment when hardware homogeneity is serious, the power of technology is constantly highlighting, represented by content. "Soft service" has gradually become a barrier to competition in the Internet TV industry. However, the Internet TV business model, which is sandwiched between policy supervision and market-oriented operation, is still unclear, and the prospects are not so good.
The Rise of Internet TV: Prices are buying people's hearts, functions increase stickinessIn the context of consumption upgrades, intelligence, online, and Internet are flooding people's lives, and people are becoming more and more accustomed to these things. Internet TV products rely on ultra-low prices and high-quality optional film sources, which can be said to be booming in the TV market. Data shows that in 2016, the penetration rate of Internet TV in China's color TV market has reached 84.7%, which has basically become a standard for families, and users' consumption habits have gradually matured. LeTV’s “free hardware and service charges†mentality caused the entire Internet TV to fall into a price war when it started. Almost all companies must be prepared to bleed into the game, which once set off a fierce price war.
During this year’s 618 promotion, major brand TV manufacturers have seen price cuts of different magnitudes. TV manufacturers such as Xiaomi, Coocaa, Konka and other TV manufacturers have 32-inch smart TVs as low as 799 yuan, 55-inch TVs as low as 2,000 yuan, and 65-inch smart TVs. The price has dropped to 2899 yuan, and a 70-inch LCD TV can be purchased for 5,000 yuan. The price of a smart phone can buy a 70-inch branded TV, and many users have to be moved by it.
The key to these TVs being so cheap lies in two points. The first is that Internet brand wire transfers can be used in online channels, which can reduce the overall cost and reduce the original costs of some offline channels such as distributors, transportation, inventory, and stores. The online channel TV operation and sales costs can Get effective control. Another point is to use Internet content to achieve value-added benefits, so as to fill the cost. Specifically, it is divided into three parts. One is to charge brand advertisers for advertising; the other is to charge users a membership fee for watching specific content; Charges for application distribution from smart TV App manufacturers, including games, e-commerce, education, and medical care.
In addition to the temptation of low prices, there are also many online viewing functions that make users feel excited. For traditional TV, it acts more as a transmission "pipe". Users cannot decide which program they want to watch. , And Internet TV gives users more choices. Utilizing the aggregation of video sites and rich online content, users can have more selectable film sources in the online movie library.
And with the continuous increase of the functions of many TVs, there are already many TVs that support the projection of mobile games. At the stage when smartphones are vigorously developing full screens in order to enhance the mobile gaming experience, a large screen of tens of inches will undoubtedly be of great value to users. The attractiveness of Internet TV, coupled with the continuous improvement of artificial intelligence and voice interaction functions, has become an important factor for users to choose Internet TV. It can be said that current users have gradually evolved from "watching TV" to "using TV" and "playing TV".
Half the sea, half the flame: the "blind spot" of Internet TV has not been solved yetIn fact, the current Internet TV is not as glamorous as it is shown. At present, the total number of household TVs in China is about 535 million. In the last 10 years, the annual TV sales have been between 40 million and 50 million, which is equivalent to 11-13 years to complete an update. Moreover, home appliance products are generally affected by the real estate market, and the pre-cooling of real estate has also directly led to a decline in TV sales. At a time when the market is becoming saturated, it is extremely difficult for Internet TV to seize the stock market, and it is difficult to achieve sustainable development solely relying on online channels and low-price strategies.
Although Internet TV does not rely on hardware to make money, but on content, software and services, it is just a good wish at present. The user's payment habit has not been formed, and it cannot be truly implemented. Taking the more mature smartphone market as an example, few companies have successfully established such a business model. For example, Xiaomi, which claims to be an Internet company, still generates more than 90% of its revenue from hardware sales. Up to 10% of revenue comes from software and services.
Although the gross profit of smart phone hardware is low, its shipment volume is an order of magnitude larger than that of Internet TV. On the other hand, Internet TV, when the cost of upstream raw materials such as panels changes in price, it means that the cost of hardware and hardware is rising, profits are constantly being pulled down, and a new profit model cannot be established in the short term, which causes a problem. A very dangerous situation. According to data, in the first half of this year, the profits of my country's TV companies generally declined, and the industry's net profit is estimated to be less than 1%.
It can be seen that those companies that do not have strong capital to rely on or whose financing capabilities cannot keep up with market needs will gradually fall behind and be eliminated in this marathon. However, to occupy the market through price wars seems to be an inevitable stage for most industries, such as the takeaway field, ride-hailing industry, shared bicycles, etc., after the reshuffle of capital, leaving a few giant companies to dominate the market.
In addition, issues such as the homogeneity of Internet content and copyright payments are also a gulf that Internet TV cannot overcome.
Nowadays, almost all Internet TVs can meet the needs of users for watching various VOD videos, education, music and other high-quality content, and most of the online content provided is similar. And those TV brands that are regarded as traditional TV manufacturers have basically made up for their shortcomings after cooperating with various video companies. In addition, most of the hit dramas cannot be broadcast simultaneously with TV stations, and blockbuster movies can only be broadcast online after they are released nationwide. This series of institutional restrictions has caused Internet TV to lose the same content in terms of content.
To reverse the situation of serious content homogeneity, video websites such as Youku and Tencent Video need to make efforts to self-produce scarce content resources. However, due to their limited capacity and limited production capacity, Internet TV must get rid of serious content. There is still a hard way to go for a homogeneous pattern.
In addition, the pressure of life and the growth of entertainment demand have also made the turn-on rate of TVs lower and lower.
With the development of society and the entire era, the pressure of life is increasing. The relentless rise of prices and housing prices has made the time that urbanites can freely spend very little now, and watching TV has gradually become a luxury behavior. Moreover, with the wave of consumption upgrades, people's entertainment needs have changed from watching TV alone to other material and spiritual cultural consumption such as concerts and travel. In addition to maintaining emotional contact with family members, watching TV at home is actually difficult to meet the higher-level entertainment needs of modern people, so now the frequency of turning on the TV can be said to be less and less.
More importantly, the rise of smartphones, tablets, video websites and various live streaming apps in recent years has been able to fully meet the needs of users for watching TV series and variety shows, and with the continuous reduction of domestic operators’ data package tariffs, The implementation of unlimited data packages allows people to watch the content they want to watch anytime and anywhere, which can be said to have weakened the function and sense of existence of the TV to a large extent.
Based on content, create the core entrance of the "living room economy"Although TV is currently greatly affected by mobile devices, TV still has value. Internet TV, as an excellent carrier that extends to smart scenes, can no longer play a role as a mere video window, but in the interconnection of smart homes. A key entrance of the For Internet TV companies, the vigorous development of TV hardware is ultimately to lay out their own ecology, so as to control the right to speak in the next smart scene.
Of course, if you want to master the right to speak, you must first have sufficient user volume and scale to support it. This requires strengthening the Internet TV to accelerate the layout of content resources and technical capabilities. You know, content is king and technology is the foundation of development in the Internet TV market, and content is always the first thing users pay attention to. Only putting a deeper sense of experience in the first place, strengthening differentiated design, in-depth IP operations, and self-made high-quality content are the key breakthrough points for Internet TV in the content battlefield.
After the content is available, the advantages of technical barriers are equally important. At present, important display technologies such as OLED and QLED are still in beta and cannot provide users with an excellent visual experience, including some current artificial intelligence technologies on the Internet. The applications in the TV field are relatively primitive, and there is still a lot of room for digging in functions such as deep learning and voice interaction. The advantage of a TV is often determined by certain specific technologies or some parts and components, and only manufacturers with core technologies have the opportunity to lead the industry and even affect the development process of the industry.
However, if you want to truly occupy the market, it is impossible to achieve breakthrough development without the precipitation of long-term technology and ideas. It is even impossible to burn out the user scale through price wars alone. The short-term blowout market sales is just an attractive digital game. For those users who only pay attention to low prices and consume, loyalty basically does not exist, and now People pay more attention to the deeper experience brought by the product, and price is no longer the only criterion for selection.
Therefore, if domestic TV manufacturers really want to open up a new era in smart TVs, they must focus on innovation in the field of high-end TV technology, turn price wars into product innovation wars, integrate multi-dimensional advantages such as terminals, content, and platforms, and realize cross-domain connections. An orderly and sufficient value flow can truly stimulate the innovation vitality of the industry and promote the healthy growth of the market.
In general, Internet TV is still in an explosive period, and the trillion-level home TV cake may still be divided into pieces. Internet TV has sounded the clarion call for the battle of smart home terminals. Who can play this smart home? Unique in the battle of home terminal, we will wait and see.
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