The PC will lose to the smart TV in this respect. The next Jinshan is it

[PConline News] The popularity of PCs and smart mobile terminals led people to forget about the existence of televisions, and the TV industry also fell into an unprecedented trough. In this trend, traditional TVs have also transformed through the Internet until today's smart TVs. Today, the development of the PC industry is quite mature, and smart TVs have only just begun. In just a few years, smart TVs have even surpassed PC terminals in some aspects. The speed is astounding. As a result, more and more “gold collectors” are flooding into the smart TV related industries...

In March 2016, according to Youku user data, the large screen, especially the TV user, has surpassed the PC and has become the second screen of the real Internet terminal. The popularity of computers has greatly increased the user's thirst for resources and provided more options. In contrast, the traditional TV model that only CCTV and local stations are open is already quite outdated. It will be sooner or later. The emergence of smart TVs has met the needs of individual users and maximized the advantages of a large screen.


Smart TV has become one of the three Internet terminals

The three major Internet terminals: mobile, PC and large-screen TV. The mobile end and the PC end preemptively, preemptively occupied the market, and although the smart TV started a little later, but with the popularity of the TV original local rapid rise. Smart TVs opened the third entrance between the user and the Internet, and also opened up a new economic model - the living room economy.


Video site has soared with large-screen terminal users

Starting in 2015, major IP dramas, online entertainment companies, and the live broadcast industry have ushered in explosive growth, which has also caused serious losses to traditional TV stations. Mobile terminals, PCs, and smart TVs are the main portals for traffic. TV is born for users to watch video resources. Smart TVs also do more user-friendly settings for users. The operation is simpler. At the same time, the advantages of large-screen viewing make users gradually return to the living room for entertainment. The users of large video sites in large-screen terminals have grown rapidly, even exceeding the PC.

Even more frightening is that for the smart TV's prospects, this is only just beginning.

The outbreak of IP dramas is inseparable from the development of another trend, which is copyright awareness. It can be said that the development of the Internet has enabled domestic users to develop the habit of eating cake for free (which, of course, is caused by our country's environment). The proliferation of pirated resources and pirated software cannot be controlled at all. When the "fast broadcast" falls, it slowly begins to take a turn. The major video sites strengthen copyright management and attract users through the introduction or self-produced stand-alone dramas and online variety shows.

As a result, a variety of membership systems came into being, and video providers through the cooperation or creation of television brands also joined the annual fee system, the charging model has become an important content of smart TV. In fact, the charging mode on TV is not new. The cable TV used before was not yet subject to annual fees, and the reason why many people's resistance to smart TV annual fee members still remained in the “Internet free age”.


Photo courtesy of Li Jie, General Manager of Alibaba Family Entertainment Division, “New Vision, New Partner”

The ultimate fact proves that in the big trend, the payment model can still be accepted by most people. Previously there were statistics predicting that the number of paying users of domestic video websites reached 9.45 million in 2014 and reached 22 million in 2015, an increase of 133%. It is expected that by the end of 2016, this number will exceed 40 million, reaching a growth rate of 80%. Compared with the PC-side, smart TV users are more willing to pay, and have become the main force for the growth of paying users.

Compared with the PC side, in addition to the advantages of large screens, smart TVs have a long-standing family tradition. They can sit in the living room, pick up the remote control, and they can watch on demand. They can also watch with their families. This is also for every family. Important daily entertainment activities.


Photo courtesy of Li Jie, General Manager of Alibaba Family Entertainment Division, “New Vision, New Partner”

Another obvious feature is that the trend of personalized recommendations for smart TV content is particularly serious. The main control method of the smart TV is through a remote controller, which means that it is not as good as a PC in some scenarios, such as a search function. The keyboard can be typed on the PC side, which is convenient. On a smart TV, experienced people will know how bad the input experience is. Although many televisions have started to implement voice control, they are still not enough for daily use. This leads to the fact that most of the traffic on the smart TV comes from personalized recommendations, and the search part only occupies a very small part.

This brings huge business opportunities to Internet companies. The same TV resource has much more traffic through personalized recommendations. This applies to advertising. In addition to traffic, advertising can bring considerable benefits to smart TV manufacturers. Income. At the same time, along with the development of smart TVs, TV shopping, TV education, video games, and other modules are all businesses must compete for, so that smart TVs create greater user value.

In the period when the cost of TV is decreasing, the profits that manufacturers can get on hardware are already quite limited. Otherwise, the continuous surge in panel prices last year will not bring huge pressure to many TV manufacturers. It is not impossible that the income generated by content and advertising alone exceeds the hardware itself, so I think LeTV's "hardware negative profit model" is not as unrealistic as external arguments.

Not to mention the fact that smart TVs only focus on the development of smart TVs. The concept of smart home is constantly hot, and users gradually return to the living room entertainment. The living room economy centered on smart TVs will be the next heavyweight market. Smart TV is considered to be an important entrance to the future smart home hardware system, and it can associate almost all smart appliances such as air conditioners and refrigerators. In this way, users' stickiness to smart TVs will increase, and the value that they can generate will be even more impressive.


Skyworth and other traditional TV manufacturers began to broaden their product lines

The PC industry is mature enough to reach the bottleneck of development. Smart TVs have only just begun. Users are gradually returning to living activities centered on living rooms. Smart homes are the most promising industries in the future. The Internet TV brand may not be involved in the competition of the television industry, but lay the foundation for smart home in advance. Traditional TV manufacturers are also quick to realize this. Companies such as TCL and Skyworth have started to expand their industrial chains. They are not only involved in television, but also involved in industries such as refrigerators, air conditioners and washing machines. They are also aiming at creating a full set of smart home system products.

Summary: No matter how the times develop, the household electrical appliance industry closely related to users' lives will never decline, and it is also an important way to connect more closely with users. In addition to its own entertainment value, smart TV is accompanied by a series of developments in the smart home industry chain. Prospects, at this point, the PC does not match. The advent of smart TVs has opened the entrance to the living room for the Internet, allowing the payment model to be gradually accepted by users. It is beyond the reach of PCs to become the second largest terminal on the Internet.

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