From explosion to shuffle! How do Internet TV manufacturers break?

About 4 years ago, the rate of traditional television operations was overwhelming. According to data released by ** in 2014, the operating rate in Beijing dropped to 30% of the freezing point level. When many traditional TV manufacturers were unable to do this, the sensitive Internet companies found the best opportunity to enter the TV industry. The earliest Internet TV brands represented by LeTV and Xiaomi reawakened the enthusiasm of young people for watching TV. This also made obvious signs of recovery in the TV operating rate. It is no exaggeration to say that the emergence of Internet TV brands has pointed the way for the development of traditional TV brands.

PPTV N55
The biggest difference between early Internet TV and traditional TV is that it has rich video content and intelligent systems, but in the past two years, the traditional TV market has also greatly improved. According to data from the Ministry of Industry and Information Technology, in 2017, the output of China's color TV sets was 217.33 million sets, while the output of smart TVs was 10.931 million sets, accounting for 63.4% of the total output of color TV sets. From this data, we can see that traditional television is also being transformed into intelligent and rich content.
Then in 2018, in the situation where traditional TV and Internet TV are approaching convergence, how should Internet TV manufacturers break?
Content-based brands can survive According to Nielsen, a market research firm, 24% of users focus on the quality of online film sources; 28% of users care about whether the operating system is smart; and up to 43% of users care about TV content. Richness.
Although the contention for content copyrights of the major television brands continues to continue, the level of popularity is not as good as before. We will find that the differences between movies, TV dramas, and variety-based cultural and entertainment contents included in different TV brands are getting smaller and smaller, and are basically in a state of “you have me”.
There are two shortcomings of entertainment content. One is that it cannot guarantee the relative advantages of the content area. Even if you have the right to broadcast the content alone, you can't stand to grab traffic from other home-made similar content. Another disadvantage is that there are uncertainties in the regulatory content of entertainment content. With the increasingly strict supervision of online content, the “supervisory blank dividend” of self-produced content on video websites has gradually dissipated. In contrast, sports content has a great advantage.

Sports resources can better reflect exclusive advantages (images from Sina Weibo)
Because of the globally reliable sporting events, it is not like movies and TV dramas can be shot as long as they have money. This will lead to more differentiated competitions in sports events and become even more truly exclusive advantages. In terms of loyalty, football fans, whether they are like Premier League Premierships, are often years or even decades of love, far more than the long-standing love of movies, TV series and even variety shows. The same is true for other sports. From the point of view of supervision, because sports projects do not involve ideology, there is little tendency for similar entertainment content to tighten, which is also an important factor for stability. And in terms of willingness to pay, compared with other categories, sports users are insensitive to the price of the charge, and renewal is also easier.
Among the Internet TV manufacturers, PPTV became the first television brand to bring together the five leagues of La Liga, Premier League, Serie A, Bundesliga, and French Ligae in the same event live broadcast platform, in addition to the Super League, AFC, and AFC. Champions League, Russia Super and other popular football matches and UFC, WWE, table tennis, badminton, snooker and other comprehensive events. At present, PPTV television has covered more than 90% of global sports resources. It can be said that there is no rival in terms of sports resources. Even millet TV, which is known for its content integration, has to rely on the power of PPTV for sports content.
At the same time, the differences between major manufacturers in film and television resources are getting smaller and smaller. More competition is the integration of video broadcast control platforms. In addition to monopolizing sports resources, PPTV TV has successfully integrated Youku and Iche The four major video platforms of Arts, Micro-Visual, and PP Video have been further promoted in the content resources of movies and TV shows. It is currently one of the most content-rich brands in the Internet TV field.
AI technology is a hot topic in recent years. It is also one of the major breaking points of Internet TV. The scenario of user needs is the key to integrating AI technology into ordinary people's lives. As the voice assistant technology matures, the rapid development of the smart TV industry has become more common for voice assistant technology. While using voice to easily replace the operation of the remote control, it finally solves the possible problems of misuse in the use of the elderly and children, and also reduces the user's learning costs.

AI technology is one of the main breaking points of Internet TV (picture from PPTV official website)
The existing methods for implementing voice control in smart TVs are basically divided into mobile phone download APP control methods, remote control voice input methods, and methods implemented by connecting smart speakers. For example, Konka, the traditional TV manufacturer, can control the TV through two methods: mobile phone or remote control voice input. The Internet TV manufacturer PPTV uses the smart speaker as an entrance to achieve far-end voice control by connecting Suning's small Biu smart speakers.
Artificial intelligence needs to continuously accumulate data to learn. The advantages of data mastered by the giants are highlighted. Under the current circumstances, instead of selecting methods for voice manipulation, it is better to select the intelligent voice technology providers behind them to see who stands behind them. Giant data of giants.
Although sales in the TV market in 2017 have increased, sales have declined sharply, which is mainly due to the rise of China's middle class and the role of consumption upgrading. In 2018, the market will bottom out. One reason is that the market sluggish in the previous year has provided greater market demand for this year, and another reason is that the prices of upstream panels have fallen, giving more room for product prices.
The sluggish TV market in 2017 exposed the weaknesses of some pure Internet brands. After the price of raw materials such as panels increased, the cost of manufacturers continued to rise, the advantages of pure Internet brands shrank, and it was impossible to continue to rely on selling hardware at low prices. Market Performance Weak. While many traditional brands in the mass production process, through the supply chain relations, improve production processes, human resources adjustments and other methods share the pressure of hardware costs, and then self-absorbed, so that when the price of components to ensure that the price of products is light Rising or even not rising, the impact of sales is relatively small.

In the channel should be combined with online and offline (images from Sina Weibo)
As the representative brand of Internet TV at present, Xiaomi and PPTV have their own channel advantages. Xiaomi sells its products through its own online mall and Xiaomi's home under the line. However, the scale of its online store is far less than that of PPTV. Because of the backing of Suning, PPTV has strong channel resources both online and offline, especially the over-the-counter Wanjia stores and direct-operated stores across Suning's Tesco occupy a clear channel advantage. It is a direct-run store that penetrates into third- and fourth-tier cities and townships, plus Suning’s logistics guarantees. The coverage under the line is relatively complete.
In 2017, the price war of TV manufacturers took a rather special approach. In the situation of rising costs, you increase prices, and I resist the way of not raising prices. Since the fourth quarter of 2017, the LCD panel has continued to decline. Once the cost is reduced, there is room for price, and the manufacturer’s initiative to cut prices will begin to return. For most mainstream users, the most concerned factor is still the price.

The price is the focus of mainstream consumers (images from Sina Weibo)
Therefore, we have seen a resurgence of price wars in 2018, especially the currently hot-fired millet TV. Millet TV has always been priced by adopting the industry's lowest price strategy. Although it has an advantage in price, it has also exposed a lot of millet recently. News about TV quality problems. The new 5 Series TVs released by PPTV have a higher price/performance ratio, even lower than the millet in terms of price, and the continuation of the industry's first-class standards in configuration, and also have a higher quality assurance. Therefore, for the majority of Internet TV manufacturers, while ensuring their own price advantage, they should also pay enough attention to the quality of the product itself.
Written at the end:
In 2018, the Internet TV brands facing a positive battle should pay attention to the content-based industry copyright, and through cooperation and strengthening of research and development to make products in technological breakthroughs, so that products more to meet the needs of users. In the marketing of products, we must integrate online and offline channels so that we can walk on two legs. In addition, the manufacturer must prepare for the brutal price war in mid-year and at the end of the year under consideration of cost. The war triggered by this demand may cause another round of reshuffle in the industry. However, it is not necessarily a good opportunity for manufacturers who have already prepared for the market to expand their market share.

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