On the 26th of December, the TV station LeTV, which had been quiet for six months, finally came in good news. LeTV introduced 10 television sets in New series and Lean series at a price of 1899-5939 yuan, covering 40- 65-inch nail technology noted that the low-cost introduction of the Levin TV, different from the previous brand to seize the market, the main purpose is to quickly reply to consumer (users), upstream supply confidence, but also for the next step may be introduced Of investors to lay the foundation.
Although LeTV has stepped up its efforts in promoting TV programs and is confident of returning to the top of the industry, most people in the industry are still skeptical. According to the technology, there are three important reasons for LeTV to support the resumption of LeTV.
First, investors will not let go of their core business.
January 13, 2017, Sun Hongbin in the snowfall before the Spring Festival, Music for the investment of 16800000000 yuan, but this huge investment is difficult to make up for music as the hole.
Although after the master of music has always been at a loss, but Sun Hongbin did not give up music, or according to the needs of enterprises to conduct a comprehensive adjustment of music.First in September of this year, the music will be renamed as' New Music ', hoping to eliminate' Jiayue Pavilion 'Brand' impact on users.
Secondly, Sun Hongbin had originally invested in LeTV. The most important thing is that it takes the most core 'prime assets' such as LeTV and LeTV as the most important business, and also supports its core business in resources and funds.
Once again, the integration of the new music as the future will also be the development of television's core business, Liang Jun's superior is a better manifestation of May 2017, Jia Yueting resigned as CEO of LeTV, Liang Jun as the new TV LeTV CEO.
It is worth mentioning that there are false news that in August of this year, LeTV and Foxconn partysanal merry, LeTV will be completely discontinued, and to abandon the television business.In this regard, music investors Sun Hongbin to be denied and said optimistic LeTV TV business, and to create a new television industry chain television.
In summary, for the new music, the assets into the core business, on the one hand in order to ensure the cornerstone of the future development of enterprises; the other hand in order to better establish a new system .But close to the core TV business to make every effort, can really save music? ?
Second, the new music strategy as a solid foundation.
In the first half of this year, after a series of strategic adjustments, LeTV continued to focus on user experience and created a product concept of 'platform + terminal + content'. It focused its resources on large-screen areas, combined with various content strategies and adopted Internet services to create Home Internet entertainment with smart TV as the core.
Through this strategic goal adjustment, the goal of NLTVTV has been determined to become a leader in the upgrading of cultural consumption based on the family Internet platform. To achieve this goal, the new music as the main entrance to the TV.
In the Internet era, the advent of smart TVs has enabled LeTV, Xiaomi and other companies to rapidly enter the television market. After years of development, Internet brands such as LeTV, Xiaomi and Kuokai have achieved good results in the market. In 2016, LeTV sold about 6 million units, leading the Internet TV industry.
As we all know, making end products is an extremely burned-out affair, especially for companies like LeTV, which have a serious lack of funds. However, LeTV's TV business has not been greatly affected. The main terminal business, combined with the new strategic direction, in the future or become a pillar industry.
To sum up, focusing on home entertainment TV, will become the most important hardware entrance for the new music, the future of television business is very likely to become the key to the new music video comeback.
Third, business fundamentals are still there.
Despite the debt crisis, LeTV is still enjoying its supply chain, operational capabilities and technical capabilities based on its existing TV channels.
In terms of operational capability, LeTV changed its mode of burning money and turned to a refined management model focusing on management and focusing on high quality and sustainable growth.
From the perspective of supply chain capability, due to the lack of funds, many manufacturers and suppliers have reduced their supply one after another, mainly because supply chain manufacturers do not expect the scale of arrears to continue to increase.
From a technical point of view, LeTV's 14 new TV releases released in 2016, such as the 4K HD series, the giant screen uMax series and the split Max series, are technically the same as the traditional TV giants.
However, the biggest pain in music as the point, or lack of funds.At the beginning of this year, Sun Hongbin in the music as the song into a war conference, also pointed out that the biggest problem facing music.
In addition, LeTV brand is also negatively affected by two aspects: First, the brand 'Jiayue Pavilion' became the largest criticized the public; the other hand, the deep debt crisis, so that consumers question the quality of products.
Although users may no longer be optimistic about the music brand, but music is also actively improving its own brand building.According to music official website revealed that the current music television production is recovering in the music television industry chain related aspects of the recovery work is also being promoted. At the same time, the new music executives are also intensively meet home delivery, Sheng Feng logistics and other super-TV logistics, warehousing, distribution, installation and other after-sales service partners to protect and sign a number of strategic cooperation agreements.
In summary, a number of unfavorable factors have restricted the development of the new music brand, but the lack of funds eventually hindered the development of core business.Although the current music business fundamentals are still intact, if in a short period of time can not be a good solution to capital problems, basic business or will go influences.
Nail Technology believes that TV business is the core business of LeTV. As the market picks up, it will likely restart, but the process will not be smooth and the momentum will not be restored to 2014-2016 level.