Internet TV development is often blocked by three major bottlenecks
Internet TV, OTT TV (Over the Top TV), for consumers, Internet TV is no longer a TV, but more like a content service platform. For Internet TV makers, they face an era when both hardware and content should be "better and better."
After experiencing "breaking ice" in previous years and the first round of killing last year, competition in the Internet TV market has become fiercer this year.
This year, LeTV continued to launch new products, but also ushered in a micro whale, cool open, Lenovo 17TV, PPTV, in addition to storm TV is about to launch its Internet TV, Siu Chi shares, popular online, Haier, Oriental Pearl and Gome five companies Also announced that it will jointly enter the Internet TV.
LeTV entered the Internet TV earlier, and in 2013 it had the Super TV X60 and the popular S40, followed by the 50-inch Super TV S50. In 2014, it launched the Super TV MAX70 and the first 4K Smart 3D TV. X50 Air. This year LeTV launched its third-generation super TV in Hong Kong, which includes six products. The 120-inch uMax120 was also introduced. LeTV told Tencent Technology that its cumulative sales of Super TVs from July 2013 to October 2015 were 4 million units, and that of last year’s sales was 1.5 million units. This year’s double 11 sales were 386,000 units.
Another Internet company that entered the game earlier is Xiaomi. Xiaomi TV was released in 2013. So far, Xiaomi TV 2 (40-inch, 49-inch), Xiaomi TV 2S (48-inch) and Xiaomi TV 3 (55-inch, 60-inch) have been launched. product. Millet TV sales in 2014 were 300,000 units.
Coocaa TV is responsible for R&D and production by Cocoa Co., Ltd. Cocoa Co., Ltd. was established in October 2006 and launched the Coocaa TV brand in 2013. The main products include the A series, K series and U series.
PPTV released three smart TVs in July of this year: PPTV-55T was sold for 4,999 yuan. 55P emperor and 43P Queen's strategy sold 3599 yuan and 1799 yuan respectively. Surprisingly, last month, PPTV announced that PPTV TV was officially exempt from membership annual fees and was free of advertisements.
The Little Whale TV has attracted much attention because of its industry influence of its founder and chairman Li Ruigang. In August this year, the micro whale 55-inch 4K TV was released. The micro-whale told Tencent Technology that its only single product has been sold for more than 40,000 units in the three months since its release.
Various size styles of Internet TV hardware dazzled. Different from the objective background of traditional television "content is from TV stations and only hardware is used," Internet TV must not only work hard on the hardware, but also have enough appeal to consumers on the content.
Xiaomi promotes the content cooperation strategy of “Hai Nai Bai Chuanâ€. LeTV is relying on the entire LeTV ecology. There are Chinese cultures behind the micro-whale. From this perspective, Internet TV is not only a hardware sale, but an all-round competition from content to experience.
The PK of Internet TVs also has a significant impact on the entire television industry: Internet channels reduce costs, low-cost hardware does not make money, and membership fees and advertising revenue change the business model. All this is a warning to the traditional industry.
Three bottlenecks
Of course, the Internet is not a panacea. Internet TV has also been attacked by various parties in its efforts to fight.
The first is the radio and television policy.
In October 2011, the former State Administration of Radio, Film and Television issued Document No. 181 to hold the operation and management requirements of the Internet TV license agency. The document stipulates that TV manufacturers and commercial video websites can only cooperate with Internet TV content integrators, ie central and provincial (including some sub-provincial cities) television stations, to embed their clients and not build their own content distribution platforms.
The seven Internet TV integrated licenses are China Central Television (CNTV CCTV International), Shanghai Radio and Television (BesTV), Hangzhou Radio and Television (Huabit Media), Southern Media, China National Radio (Yangguang Yinhe), and China International Radio ( CIBN) and Hunan Radio and Television (Mango TV). Other organizations including Beijing Radio and TV Station, Jiangsu Radio and TV Station, Shandong Radio and TV Station, Yunnan Radio and TV Station, City United Television (CUTV), and China Film Network received a total of 14 content service licenses.
Just this week, Radio and Television attacked again, blocking 81 illegal applications in the first batch, and ranking well-known software such as Fengyun live, Himalayan, and Panda listening. At the same time, the General Administration of Radio, Film and Television issued another ban on Internet TV and TV boxes, requiring the seven licensees to self-check and correct themselves against the four points that included "TVs and boxes cannot be installed via the USB port."
From requesting to stop the TV programs provided in the box from time shifting and viewing functions to ordering the closure of download channels for various types of video APPs and video aggregation software and Internet browser software, and then to the SARFT and the Ministry of Public Security in September this year. With the release of document No. 229, the disadvantage of Internet TV in terms of policy is very obvious.
Followed by the counter-attack of traditional TV manufacturers.
In terms of sales volume, sales of Samsung, Hisense, and TCL smart TVs in 2014 were all on the scale of 10 million units. The sales volume of LeTV was 1.5 million units and millet was 300,000 units. In the past year, Samsung’s smart TV market share was 26.2%, Hisense’s smart TV market share was 16.0%, TCL smart TV market share was 12.0%, and Xiaomi’s and LeTV’s market share were only single digits. Traditional TV still occupies most of the market. Once they begin to “Internetize,†they are likely to annihilate existing Internet TV by virtue of their existing offline channels and product quality.
In January of this year, from the military industry, color TV industry, to the diversified development of information electronics, Changhong announced that it will jointly establish Guangdong TV and TV stations and excellent friends to create Internet TV. Guangdong Radio and Television Station will be responsible for the management of the licensee's integrated broadcast control and management, and Premier Pengle will provide technical support and content integration operation services. Changhong will be responsible for the customized production and sales of TV sets.
There are hardware manufacturing, supply chain flexibility, channels and logistics, Internet TV is also facing no small challenge.
Now that the industry is unprecedentedly developed, hardware manufacturing is no longer a high threshold. However, whether the supply chain can make rapid adjustments at any time based on the demand for products is a key issue. The greatest advantages of Internet companies are light assets, short processes, and fast response. However, the process of encountering production is extremely complicated. The hardware with many links is the response speed of the entire supply chain. From the preparation of materials, procurement, packaging, quality to storage, delivery, all aspects of hardware production can not be avoided.
In terms of sales, according to data from third-party market research firm Aowei Cloud Network, the online sales volume of TVs in the first half of 2015 was 5.28 million units, up 77% year-on-year, accounting for 24% of all channels. Online sales have increased, and logistics and distribution problems have followed. The first and second-tier markets covered by e-commerce channels are becoming increasingly saturated. The third, fourth and rural markets have not yet been fully developed. These are blind spots in the Internet.
While online, the user experience model of physical stores is still important. This is where Internet companies lack experience. For users' direct experience and after-sales maintenance, offline stores have inherent advantages, but offline stores are a big cost for Internet TV.
Internet TV has its own unique advantages, and it also has a short board compared to traditional TV. Wang Zhiguo, chairman of Coolopen, once stated that "only 5 Internet TV brands will remain in the next year." Whether the major Internet TV manufacturers can survive in the fierce competition still needs to find a way to make up for the shortfall and step by step.
After experiencing "breaking ice" in previous years and the first round of killing last year, competition in the Internet TV market has become fiercer this year.
This year, LeTV continued to launch new products, but also ushered in a micro whale, cool open, Lenovo 17TV, PPTV, in addition to storm TV is about to launch its Internet TV, Siu Chi shares, popular online, Haier, Oriental Pearl and Gome five companies Also announced that it will jointly enter the Internet TV.
LeTV entered the Internet TV earlier, and in 2013 it had the Super TV X60 and the popular S40, followed by the 50-inch Super TV S50. In 2014, it launched the Super TV MAX70 and the first 4K Smart 3D TV. X50 Air. This year LeTV launched its third-generation super TV in Hong Kong, which includes six products. The 120-inch uMax120 was also introduced. LeTV told Tencent Technology that its cumulative sales of Super TVs from July 2013 to October 2015 were 4 million units, and that of last year’s sales was 1.5 million units. This year’s double 11 sales were 386,000 units.
Another Internet company that entered the game earlier is Xiaomi. Xiaomi TV was released in 2013. So far, Xiaomi TV 2 (40-inch, 49-inch), Xiaomi TV 2S (48-inch) and Xiaomi TV 3 (55-inch, 60-inch) have been launched. product. Millet TV sales in 2014 were 300,000 units.
Coocaa TV is responsible for R&D and production by Cocoa Co., Ltd. Cocoa Co., Ltd. was established in October 2006 and launched the Coocaa TV brand in 2013. The main products include the A series, K series and U series.
PPTV released three smart TVs in July of this year: PPTV-55T was sold for 4,999 yuan. 55P emperor and 43P Queen's strategy sold 3599 yuan and 1799 yuan respectively. Surprisingly, last month, PPTV announced that PPTV TV was officially exempt from membership annual fees and was free of advertisements.
The Little Whale TV has attracted much attention because of its industry influence of its founder and chairman Li Ruigang. In August this year, the micro whale 55-inch 4K TV was released. The micro-whale told Tencent Technology that its only single product has been sold for more than 40,000 units in the three months since its release.
55-inch Internet TV Main Parameters Comparison
Various size styles of Internet TV hardware dazzled. Different from the objective background of traditional television "content is from TV stations and only hardware is used," Internet TV must not only work hard on the hardware, but also have enough appeal to consumers on the content.
Xiaomi promotes the content cooperation strategy of “Hai Nai Bai Chuanâ€. LeTV is relying on the entire LeTV ecology. There are Chinese cultures behind the micro-whale. From this perspective, Internet TV is not only a hardware sale, but an all-round competition from content to experience.
The PK of Internet TVs also has a significant impact on the entire television industry: Internet channels reduce costs, low-cost hardware does not make money, and membership fees and advertising revenue change the business model. All this is a warning to the traditional industry.
Three bottlenecks
Of course, the Internet is not a panacea. Internet TV has also been attacked by various parties in its efforts to fight.
The first is the radio and television policy.
In October 2011, the former State Administration of Radio, Film and Television issued Document No. 181 to hold the operation and management requirements of the Internet TV license agency. The document stipulates that TV manufacturers and commercial video websites can only cooperate with Internet TV content integrators, ie central and provincial (including some sub-provincial cities) television stations, to embed their clients and not build their own content distribution platforms.
The seven Internet TV integrated licenses are China Central Television (CNTV CCTV International), Shanghai Radio and Television (BesTV), Hangzhou Radio and Television (Huabit Media), Southern Media, China National Radio (Yangguang Yinhe), and China International Radio ( CIBN) and Hunan Radio and Television (Mango TV). Other organizations including Beijing Radio and TV Station, Jiangsu Radio and TV Station, Shandong Radio and TV Station, Yunnan Radio and TV Station, City United Television (CUTV), and China Film Network received a total of 14 content service licenses.
Just this week, Radio and Television attacked again, blocking 81 illegal applications in the first batch, and ranking well-known software such as Fengyun live, Himalayan, and Panda listening. At the same time, the General Administration of Radio, Film and Television issued another ban on Internet TV and TV boxes, requiring the seven licensees to self-check and correct themselves against the four points that included "TVs and boxes cannot be installed via the USB port."
From requesting to stop the TV programs provided in the box from time shifting and viewing functions to ordering the closure of download channels for various types of video APPs and video aggregation software and Internet browser software, and then to the SARFT and the Ministry of Public Security in September this year. With the release of document No. 229, the disadvantage of Internet TV in terms of policy is very obvious.
Followed by the counter-attack of traditional TV manufacturers.
In terms of sales volume, sales of Samsung, Hisense, and TCL smart TVs in 2014 were all on the scale of 10 million units. The sales volume of LeTV was 1.5 million units and millet was 300,000 units. In the past year, Samsung’s smart TV market share was 26.2%, Hisense’s smart TV market share was 16.0%, TCL smart TV market share was 12.0%, and Xiaomi’s and LeTV’s market share were only single digits. Traditional TV still occupies most of the market. Once they begin to “Internetize,†they are likely to annihilate existing Internet TV by virtue of their existing offline channels and product quality.
In January of this year, from the military industry, color TV industry, to the diversified development of information electronics, Changhong announced that it will jointly establish Guangdong TV and TV stations and excellent friends to create Internet TV. Guangdong Radio and Television Station will be responsible for the management of the licensee's integrated broadcast control and management, and Premier Pengle will provide technical support and content integration operation services. Changhong will be responsible for the customized production and sales of TV sets.
There are hardware manufacturing, supply chain flexibility, channels and logistics, Internet TV is also facing no small challenge.
Now that the industry is unprecedentedly developed, hardware manufacturing is no longer a high threshold. However, whether the supply chain can make rapid adjustments at any time based on the demand for products is a key issue. The greatest advantages of Internet companies are light assets, short processes, and fast response. However, the process of encountering production is extremely complicated. The hardware with many links is the response speed of the entire supply chain. From the preparation of materials, procurement, packaging, quality to storage, delivery, all aspects of hardware production can not be avoided.
In terms of sales, according to data from third-party market research firm Aowei Cloud Network, the online sales volume of TVs in the first half of 2015 was 5.28 million units, up 77% year-on-year, accounting for 24% of all channels. Online sales have increased, and logistics and distribution problems have followed. The first and second-tier markets covered by e-commerce channels are becoming increasingly saturated. The third, fourth and rural markets have not yet been fully developed. These are blind spots in the Internet.
While online, the user experience model of physical stores is still important. This is where Internet companies lack experience. For users' direct experience and after-sales maintenance, offline stores have inherent advantages, but offline stores are a big cost for Internet TV.
Internet TV has its own unique advantages, and it also has a short board compared to traditional TV. Wang Zhiguo, chairman of Coolopen, once stated that "only 5 Internet TV brands will remain in the next year." Whether the major Internet TV manufacturers can survive in the fierce competition still needs to find a way to make up for the shortfall and step by step.