OFweek smart home network news Recently, LeTV to new president Liang Jun published an open letter, the letter predicts the future of the Internet market macro environment. In the age of popularization of the Internet, any area can be linked to the Internet, and the television industry is no exception. In recent years, the development of the Internet TV market has been very successful.
The concept of Internet TV was first proposed by LeTV CEO Jia Yueting. About 5 years ago, Jiayue Ting believes that IPTV (interactive Internet TV) is a better channel for promoting high-quality paid content in the operator market. He hopes to make smart set-top boxes and TVs based on Android and invites former Lenovo executives Liang Jun. Join. In May 2013, LeTV officially launched LeTV TV Super TV.
After LeTV opened up the market, Xiaomi entered the game and opened the prelude to the "price war." Lei Jun has said: "We are not a product can sell more high prices will be set more high-priced companies, we are a product that can sell more than low prices will be set more low-cost companies." In the low-price strategy of LeTV and Xiaomi, a 40-inch Internet TV has become a “thousand-yuan machine†and its price is equivalent to a low-end mobile phone.
With a low-cost strategy, LeTV and Xiaomi have benefited tremendously and attracted other companies to join the Internet TV industry. In February 2015, Barley Technology released a barley TV. In May, Lenovo announced the launch of the TV brand "17TV," and PPTV also introduced the first smart TV. In July, the storm dug Liu Yaoping, the former vice president of Skyworth, in preparation for the creation of “Storm TVâ€. In December, Popular Internet, United Haier, Oriental Pearl and Mega Share jointly launched popular Internet TV.
In March this year, Skyworth, Mango TV and Everbright jointly launched "Love Mango TV," and TCL also officially released Internet TV "Thunderbird."
The appearance of Internet TV broke the balance of pricing of traditional TV manufacturers. After LeTV and Xiaomi entered the TV field, the color TV prices were lowered by 10% as a whole. According to statistics from AVC (Ovid Consulting), the average price of color TVs in the period from January to November 2014 was 3,271 yuan, which was 9% lower than the previous year, and it fell below 3,000 yuan in June 2014, which was the lowest price in the whole year. Afterwards, the Internet TV manufacturers that have entered the office have always followed the principle of low prices and hit a “price war†to make the TV prices fall again and again.
For consumers, price cuts are a good thing, but for traditional TV manufacturers, they are caught unprepared by the low-price strategy of Internet TV, causing the TV industry to be in a state of “increasing income without increasing revenueâ€. AVC data shows that last year China's color TV market retailed at 50.89 million units, a year-on-year increase of 7.8%. However, the retail sales of the industry totaled 156 billion yuan, down 1.8% year-on-year.
In addition to the price war, the content is also the "battleground of the military".
After internet companies enter the television industry, they must first sell the television. However, if it is purely hardware, Internet companies have no basis. Therefore, a large amount of hardware is exported through low-cost strategies, and then the core of competition is introduced to the home site of Internet companies, that is, software and content, so that the competition in the television industry enters the second half. You know, "soft income" is what Internet companies are best at, whether it is traffic or content.
In addition, the growth of television shopping is also relatively rapid. Although profits are not high, the flow of water continues to grow. Liang Jun said that the stream of television shopping has grown from the initial 500,000 to 10 million. Wang Chuan, vice president of Xiaomi, also revealed that it was profitable in television shopping last year. Although the hardware is in a loss, the Internet revenue including application distribution, advertising, and membership income can be offset.
When it comes to losses, starting from the second half of last year, all raw material prices rose sharply, and some screens even rose as high as 60%. Almost all Internet TV manufacturers suffered losses. As Liu Weizhi, the vice president of Skyworth, puts it: “The low-cost strategy of Internet companies is understandable, but it is also a conventional method, but there is a saying in the rivers and lakes, and it is always necessary to get out and mix,†which also makes the Internet TV industry compete. More intense.
From the moment no one enters the game to the trials of water and the current fierce fighting situation, the scale of the Internet TV industry continues to expand. The ecological scale of OTT (Internet TV + box) will usher in the peak this year, and then the growth rate will slow down. At present, many manufacturers turn their attention to VR, AI, etc., and want to use new technology to promote Internet TV sales.
Internet TV has changed the user's home entertainment habits, and it has also triggered consumer demand for television replacement. Entering 2017, the “killing†of major manufacturers is even more intense. For users, competition can bring more benefits. For manufacturers, competition enables them to be in a state of battle and conducive to future development. For the industry, competition is also a sign of maturity.
With the development of the times, the consumption level of people is gradually increasing. At the same time, people's entertainment methods are beginning to diversify, especially for modern young people. As a result, different kinds of electronic products are starting to be in people's lives, and the booming Electronic Cigarette industry reflects this.
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