According to statistics from third-party market research agencies, only two of the top 10 Internet TV brands were formerly Internet TV representatives LeTV TV, already dropped out of the top ten.
Internet TV is a brand-new technology that uses broadband cable television network, Internet, multimedia, communication and other technologies to provide users with a variety of interactive services .In general, Internet TV is a kind of Internet companies to create The new business model, 'hardware free, content charges' It is understood that Internet TV rely on the sharing and integration of network resources, to bring massive content to users, the market has been a blowout-style development.However, this year, its growth Slowed down, the market share dropped significantly, and some even called 2017 the year of "Internet TV Outing."
Fatigue growth
It is understood that, as Internet TV can give consumers the experience that traditional TV can not be achieved, the market was officially recognized in 2010 and fully appreciated by consumers and developed rapidly.
Internet TV has attracted the attention of a good market prospects.Industry estimates, according to 400 million households, each household to pay 300 yuan per year content viewing fee calculation, China's annual market size is 120 billion yuan; according to the hardware 3000 yuan / Taiwan, 5 years A change, converted 240 billion yuan each year. The two together, is more than 300 billion yuan / year market size.
With the influx of capital in various markets starting in 2012, as the Internet companies represented by LeTV became the barbarians in the area of airborne television and opened the market rapidly at a low price with high prices in 2013, the entire Internet TV also welcomed To the rapid development stage.
With the accession of various types of capital and the continuous fall of policies and policies, the annual sales volume of Internet TV will exceed 30 million sets by 2015. The penetration rate of Internet TV in 2016 was as high as 84.7%. The market penetration rate and the average TV price The average size of consumption surpassed North America, Western Europe, ranking first in the world.
After experiencing rapid development, the Internet TV market began to moderate. LeTV was once considered a 'catfish' in the field of television. While putting pressure on traditional TV manufacturers, it also stimulated their transformation and brought along Internet TV manufacturers The start and development.
However, according to the monitoring data, the market share of Music in the first quarter of 2017 dropped from 1.4% to 2.6% from the same period of last year, falling out of the top 10. According to data released by Zhongyi Kang, LeTV from January to July Sales accounted for more than 50% year-on-year decline; '618' electricity supplier sales fell 57% last year.
In addition, the market lost by LeTV was not dominated by other Internet TV brands, and the overall market share of Internet TV was declining. "Internet TV accounted for more than 85% of the sales in the stores, but the market for traditional TVs was good and there was a rebound Momentum. 'Fuzhou, a sales manager of a comprehensive mall told reporters.
Insufficient capacity for sustainable development
It is understood that the downturn in this wave of Internet TV and panel prices continue to rise in a great relationship.In the hardware, the panel accounted for more than 60% of the cost of this panel price cycle up to 14 months, is nearly 5 The longest time in years.
Internet TV in the explosive development at the same time, there is a disorderly competition and other issues due to market optimism, have joined the capital of various channels, especially in the two years from 2014 to 2015, this market has just formed, it ushered in a round Another round of vicious competition, there is 'you sell TV to send members, I sell members to send the TV' phenomenon.
'When the hardware and technology have reached a certain stage of development, it will be hard to achieve a bigger breakthrough. Inevitably, the homogenization of competition will intensify. If an enterprise can not stand the test of the market, it will only be able to leave.' Insiders said.
In addition, consumer satisfaction with Internet TV content is also declining.Each third-party platform source strengths vary, in a platform is difficult to meet the viewing needs, but at the same time the purchase of multiple platforms, more than 80% of the content Is repeated.
Zhu Sihai, director of industry department of Fujian Provincial Government Development Research Center, believes that the profit model of Internet TV operation is different from the profit model of hardware sales in the traditional TV industry mainly because of sales membership, profitability of video content, burning of hardware, content homogeneity The Internet TV industry in the development of finding a way out, differentiation, value-added services is the key, rather than blindly low prices.
Due to the high service period of the television products, the products in the users' hands are replaced more slowly. In the competition of the television product group, the high-cost panel raw materials doomed their products are not suitable for the price war, and there is no panel Manufacturing capacity, which results in insufficient capacity for sustainable development.
The so-called technical strength, that is, the ability to tune the panel, TV is undoubtedly one of the most demanding product line display technology, which also resulted in a very high degree of depth of the upper and lower television products, with the flagship of tens of thousands of dollars, low End several thousand dollars, bringing a completely different effect, is the pursuit of consumers.
Such as millet TV 4A hot sales, this is a main product of the People First, but relatively high-end but also more expensive millet TV 4 rarely interested. Many consumers said: 'have the same money, why do not we buy Hisense, TCL, even Sony, Samsung?
Profit model to be exceeded
Internet TV technology, relying on new technologies such as artificial intelligence iteration, new technologies continue to move forward.In this regard, the industry pointed out that the Internet television industry still has its development time and space, the current layout in the field of artificial intelligence Still in its infancy, individual Internet TV brands have problems that can not be attributed to Internet TV.
In addition, the television itself is durables, in accordance with the cycle of smart TV to count, the two years are in the middle of the replacement period.With smart TV in design and technology, there is no significant breakthrough, so the user for Machine power is also very difficult to be mobilized.
Internet companies to enter the television market is the biggest problem facing the hardware.Experts pointed out that traditional e-commerce vendors, deep plowing the television industry for many years, the supply chain management system is relatively sound, strong anti-risk ability to explore the traditional TV manufacturers and Internet companies comprehensive cooperation mechanism , Strengthen technological research and development and business cooperation, strengthen content innovation, expand Internet video content to video by connecting to smart home life, and provide consumers with more value-added services, making television an indispensable network terminal for smart home life.
Zhu Sihai that Internet companies to enter the television market has not been particularly successful profit model, and content operations there are some issues that must be addressed.First of all, Chinese consumers are more accustomed to the free Internet content, market development requires a certain process.Secondly, how to Rich content resources for effective integration optimization.Many data storage, transmission, analysis requires strong technical and financial support, requires some disruptive innovations.