Internet TV becomes an important entrance to the "living room economy"

Recently, Storm Technology Co., Ltd. has joined hands with Haier Group’s companies such as Riri Shun, Aofei Animation, and Sannuo Digital Audio to announce the establishment of a joint venture to jointly build Storm TV. Industrial Securities believes that Storm TV will help storm technology into the home entertainment market. Shortly afterwards, there was news in the industry that Microwhal Technology, co-founded by Li Ruigang, former president of Shanghai Wenguang, and Li Huaiyu, Founder General of BesTV, will launch Internet TV micro whale television. Microwhale TV defines itself as "a TV belonging to a new generation of Chinese families."

Smart TVs with high added value are becoming mainstream in the market. According to statistics from iResearch, it is estimated that nearly 80% of the flat TVs will have networking function by 2015. Suning recently stated that Suning’s share of smart TV sales has exceeded 80% as the largest domestic online and offline channel distributors. In the recent 35 billion television purchase orders signed with color TV manufacturers, smartphones accounted for the largest proportion. Up to 90%.

Dong Min, general manager of Owen Cloud Network Black Power Division, believes that Internet TV has become the core of the living room economy. The value of hardware and derivative services created by the entire living room economy this year will be 230 billion. By 2020, the overall size of the living room economy will reach 1100 billion. The rise of the living room economy has opened the ceiling of the entire home appliance chain, and the trillion-dollar level also makes the mining of the living room economy a common understanding of the industry and the direction of power generation in the coming years.

Unlike traditional TV companies, which rely mainly on hardware charging modes, in recent years LeTV and Xiaomi have adopted the “hardware free, content and service charging” strategy in the Internet TV field. They quickly opened up the market through “low-cost” selling points and attracted users’ attention.

Under the “backwards” of internet companies, traditional color TV companies have also begun to change their business models and transform themselves into the Internet model. Qin Huizhong, general manager of Qingdao Hisense Electric Co., Ltd., said in Shanghai recently that the competition among TV companies will enter into competition for the number of users and the value of users. Hisense began to profit by providing smart TV value-added services. In the next three years, Hisense will put content services such as video consumption, scene shopping, online education, and big screen games into the living room, hoping that the profits from content and services will be greater than 5 years later. Or equal to the current hard sales profit.

TCL is currently also making efforts to promote the "smart + Internet" strategic transformation and the establishment of "product + service" business model of "double +" transformation strategy. In the first half of this year, TCL Multimedia has achieved a cumulative sales volume of 7.716 million LCD TVs. The cumulative number of users activated through the company's smart network TV terminals has reached 9.063 million, and the average number of active users per day has reached 3.440 million. Rapidly growing user data shows that revenue from service business brought by TCL smart TVs will continue to grow in the future.

IDC China predicts that in 2015 multiple appliance manufacturers announced the transition to the Internet, and many Internet companies want to enter the TV market. The difficulty of infiltrating into each other’s professional fields depends on either side. The cross-border integration of Internet companies and home appliance manufacturers will drive both sides to achieve their goals.

Oviyun believes that the integration of industries will become the development trend of Internet TV. One is the joint foundry of Internet companies, extending the value chain downwards. The second category is the cooperation between traditional brands and Internet companies based on different starting points, their respective division of labor, and sharing of revenue. The third category is the deep cooperation between traditional manufacturers and Internet companies to create joint ventures and brand new Internet TV brands.

Dong Min said that in the future, the ecosystem based on Internet TV will be ripened by private capital and the business model will become clearer and clearer. The five most potential scenes on Internet TV are video, games, e-commerce, education, and local life. The competition in the color TV industry is already a three-dimensional competition in the whole chain. The future will be a victory for all-round manufacturers. It needs not only the traditional hardware operation power but also the ecological construction force, including in-depth software development, content resources, marketing innovation, and users. Operation, value conversion, etc.

However, in view of the current development status of the domestic Internet TV industry, Ereli believes that from the perspective of the entire industry, the current industry competition has fallen into a price war prematurely, which is not conducive to the healthy development of the industry; from the perspective of the industry chain, the cooperation relationship between the parties is loose, resulting in The lack of continuity and in-depth cooperation makes it difficult to form a stable industrial interest chain. From the perspective of the enterprise, mature business models have not yet formed; from the user level, compared to foreign markets, the user's payment habits in China have yet to be cultivated. .