On December 26, when Feng Xin, founder and CEO of Storm Group, accepted an exclusive interview with China Securities Journal, he said in 2018 the company will adjust its strategy to 'All for TV', focusing on Internet TV business.
Business strategy adjustment
China Securities Journal: Storm Group focus on Internet TV business what is the reason?
Feng Xin: Storm video is the most important part of the Storm Group, based on its brand and user size, Storm TV, VR business to rapid development.But Storm video limited profit margins for development facing the low.With the online video platform competition In, can not fight with BAT's platform to burn 'buy video rights.
As a result, the Storm Group turned to VR hardware, TV screen two opportunities from the current situation, the VR industry broke out still takes a long time, while the living room Internet environment is about to boil the boiling point of the water at the same time, the company won Prior to difficult access to channel resources, therefore, the company decided to make strategic adjustments.
China Securities Journal: How to operate?
Feng Xin: Originally 100% of the resources in the storm, only 10% -20% to the TV. 2018, resource allocation will be a major adjustment, tilt to Storm TV. Strategic adjustment is equivalent to 'subtraction', a number of business The focus is only Storm TV.
Waiting for the VR industry to break out
China Securities Journal: 2018 of the company's Internet TV business What's the point?
Feng Xin: Internet TV industry entered the service wrestling stage.Company voice products far talked about the release of TV, TV boot time extended to 7 hours, boot ratio increased from 65% to 70% of Internet TV companies not only to make Internet services, Should also speed up the upgrade AI, new retail, smart home service.
In 2018, the company has its own point of view in respect of the television advertising business based on the accumulation of users, product sales after price increases, as well as the decline in hardware costs and channel expansion.
China Securities Journal: the company layout game industry reasons?
Feng Xin: Storm Group in the field of operation of the game is relatively weak, the lack of a professional game operations team.This business has not been the focus of the company, less investment.This time the establishment of game operators, to better run the company's traffic and strengthen Game realization ability.
China Securities Journal: VR and other business how to arrange?
Feng Xin: VR industry is still immature, industry outbreak also takes a long time. The company's VR business focus now live, belong to the incubation project, waiting for the outbreak of the industry.