In the past June, a "parlor battle" filled the smoke: Guangdong, one of the seven largest licensees, formally released its own brand of Internet TV smart terminals; cable operator Gehua Cable launched the 4K TV brand, again The five giants including China Film and Alibaba Group joined hands to establish a TV theater company; Skyworth, Tencent and China Internet TV reached a cooperation strategy; Xiaomi and LeTV focused on Internet TV content and fees and other topics, and they all called each other “friends†and called each other. "Oh!"
Copyright acquisitions, content syndication, and experience-enhancing, “Internet + TV†are competing against each other to compete for valuable living room resources and eyeball resources. This side is getting more and more stateful, more and more colorful screens, what kind of drama will be staged? The curtain has just opened.
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Mode Dispute
The most important thing is the user experience. Whether the content is what the user needs, and whether the content is convenient and cheap, is the crucial extra point.
In this all-out war, the dispute between Xiaomi and LeTV is undoubtedly the most concerned.
On June 10th, Xiaomi announced that it has established a content alliance with more than 100 video sites and stated that its television content is twice as loud as LeTV. As a result, a continuous "spirit" between Xiaomi and LeTV was triggered. This “spiritual spasm†has gone through multiple rounds of reciprocity, from flagging each other to Weibo to reprimanding, and then to their respective fans supporting their brand. It has been difficult to distinguish.
The focus of the conflict between the two parties focuses on content, copyright, and fees.
Xiaomi questioned LeTV with less content and tied up with an annual fee; LeTV mocked Xiaomi's “content is all from the public network and its own content is 0â€. Xiaomi deduced that LeTV was suspected of violating the rules and may be “quiet at any time.†LeTV refuted Xiaomi as “either unlawful or ulterior motiveâ€. Xiaomi said that LeTV “bundles an annual fee†and LeTV said that Xiaomi’s “free of charge is a filmâ€...
In the eyes of people in the industry, this debate, to a certain extent, shows that the competition of Internet TV is changing from "hard" to "soft". Compared with hard hardware configurations, content competitions such as content are escalating.
In fact, Xiaomi and LeTV represent two distinctly different modes of online TV. Although millet is a hardware originator and involved in content later, it is a big shot. In November 2014, Xiaomi invested RMB 1.8 billion in iQIYI, followed by investing in Youku Tudou, and became a shareholder of Huace Film and Television, thereby creating a “major video site alliance†with more than 100 partners providing content.
In contrast, LeTV, which started as a video website, has a large amount of exclusive copyrighted content in addition to the syndicated content with its partners. Similar to LeTV, although iQIYI, Youku Tudou and other video merchants do not have their own television production, they also produce TVs in a joint fashion with traditional manufacturers and brands, and use their resources to make full use of their resources.
In Yi Yi’s CEO Zhang Yi’s opinion, syndication content and main content are all feasible at present. Giving these two models a “higher score†is like discussing whether to use the umbrella in the summer or to wear a hat and go out. There is no standard answer.
"The most important thing is the user experience. Whether the content is what the user needs, whether it is convenient to get the content, whether it is cheap, and whether the experience is comfortable is a crucial extra point," said Zhang Yi.
Stirring effect
This is a market that has just begun. Under the slogan of “Internet + TVâ€, traditional manufacturers and Internet companies are struggling to run
The influx and force of Internet companies have brought about no small stir effect to the TV industry.
“LeTV and Xiaomi undoubtedly brought a huge impact on traditional TV manufacturers.†Zhang Yi pointed out that on the price, the joining of Internet companies directly lowers the price of the same-grade machines; in addition, they stand in the “Internet+†air outlet. From the perspective of user needs to improve themselves, follow the trend; In addition, the Internet's profit model, giving the traditional TV industry only the idea of ​​making money from the hardware to provide more choices.
Whether initiative or "forced", traditional manufacturers are making drastic changes to set off a "war in the living room." While continuing to promote high-end models, traditional manufacturers have introduced some smart TV models with high performance-price ratios, and have made substantial changes in their content and experience to actively embrace the Internet.
According to Wu Chunyong, editor-in-chief of the converged network, despite the impact, traditional TV makers have not actually “failedâ€. However, Xiaomi and LeTV failed to achieve great disruptions in the mobile phone and video fields due to various shortcomings such as capacity, quality, and after sales.
More Internet companies have poured into this industry. Ali cooperated with Skyworth to create a cost-effective Internet TV sub-brand "Cool"; Youku Tudou and Konka joined forces, iQIYI formed an alliance with TCL, launched their own Internet TV brands, and actively participated in the layout of Internet TV.
This is a market that has just begun. According to the disclosure by CITIC Securities and China Yikang, as of the end of 2014, LeTV had 1.5 million active users and Xiaomi only had 300,000. Traditional TV manufacturers still dominate the majority of markets, and Hisense, TCL, and Skyworth rank the top three with 8 million, 6.5 million and 6.3 million respectively.
Under the slogan of "Internet + TV", traditional manufacturers and Internet companies are struggling to run, trying to consolidate the basis of competition and stand on the forefront of the industry.
For example, LeTV has accelerated the rollout of offline experience stores, and it plans to lay out 3,000 outlets during the year. Consumers are expected to have close contact with their products in physical stores.
TV 3.0
Regardless of TV manufacturers, video companies, or licensees, laggards may be eliminated from the competition, and the warlords will eventually transition to the world.
The strong penetration of the “radio-electric system†has added more variables to the industry that is becoming more and more competitive.
On May 26th, Guangdong, one of the 7 largest licensees, issued a smart TV brand CAN. On the same day, CATV launched a 4K TV brand. After that, it successively teamed up with China Animation, Ali and other five giants to establish a TV theater company. Skyworth, Tencent and China Internet TV reached a cooperation strategy to fully deploy Internet content. In recent years, business cooperation in the areas of video, games, and TV shopping has been one after another.
"Before the Internet was added, traditional TVs mainly played cable programs. It was 1.0 era and it is now in the 2.0 stage of the 'Military War'," Wu Chunyong said.
Looking at the history of Internet TV, the “brittle brakes†of SARFT's Internet TV and TV boxes in 2014 were undoubtedly the key nodes affecting the direction of the industry. According to the requirements, the content broadcast on Internet TV and on the box must be provided by the owner of the content service license and must be reviewed by the owner of the integrated service license before it can be broadcast.
Wu Chunyong believes that prior to this, the development of the industry was basically disorderly and non-standard, and now it has gradually embarked on the path of healthy and orderly development. He predicts that in the next few years, the entire industry will appear after another round of waves of redress. "Regardless of television manufacturers, video companies or licensees, laggards are likely to be eliminated in the fierce competition, and the warlords will eventually transition to a situation where they are a bit divided."
In Zhang Yi’s eyes, ever-increasing competition, regardless of hardware or content, will make every aspect of the Internet TV industry chain more professional, and consumers will benefit as a result. In the future, Internet TV will become the home information processing center and interactive entertainment center together with mobile phones. The development of smart homes will make television more diverse. As the multi-screen interactive technology matures, the gap between television, computers and mobile devices will be opened up.
"Internet +, smart home ... ... more and more concepts will become a reality in the field of Internet TV, the industry will accelerate into the 3.0 era," Wu Chunyong said.
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