In the panel prices, new demand sluggish, increasingly fierce market competition environment, the color TV industry has entered a meager hardware era.But today's color TV industry has been completely out of the hardware-dependent business model, with the number of operating users continue to rise , Hisense as the representative of color TV companies have stepped up the operation of the big screen, color TV industry's business model is being rebuilt.
Hardware profit meager
In the first half of last year, as the panel prices continued to rise, resulting in the prevalence of decline in profit margins of China's TV manufacturers.According to Orvite cloud network data show that in 2011, China's color TV industry net profit margin of 3% to 2014, only 1.5 %, While the first half of last year has fallen below 1%.
TV manufacturers profit rate decline year after year, with the TV machine has a direct relationship between the profits.Nice Technology noted that the TV machine profit modest three main reasons:
First, the panel prices are high.As we all know, the highest proportion of television raw materials is the panel, accounting for about 50% -60% of the total cost of the panel since 2016, there has been a substantial increase in the panel.According to Ovid Panel data showed an average increase of about 40% from the beginning of 2016 to July 2017. Although panel prices have dropped in the fourth quarter of last year, the reduction is not significant, and the panel is still at a high price at this stage. According to public statistics, in August 2016, 55-inch panel prices rose 10 US dollars and continued to grow for several months; as of October 2017, 55-inch panel prices began to fall only 5 US dollars, far from the normal level .
Second, low-cost Internet manufacturers competition Since 2015, the dominant position of Internet TV stations, the majority of Internet companies use price war, and traditional TV vendors to seize the market to millet, for example, in January of this year, Xiaomi launched 4A 50-inch TV, the main Cost-effective and intelligent voice interaction, for only 2399 yuan; while Xiaomi's another 4A 32-inch TV for only 1099 yuan.The two millet TV rely on low-cost advantage, while attracting many consumers, but also a strong impact other brands.
Third, the competition is fierce, leading to low profit margins.Because the market demand growth is limited, manufacturers in order to better promote sales, had to carry out promotional activities, price advantage to attract consumers.However, over-depressed prices, reducing the manufacturer's net profit According to Orville cloud network data show that in 2017 China's color TV industry net profit below 1%.
Huge operating space
In the TV industry, when the hardware dividend becomes a tense, especially when panel costs are not much lower, content operation becomes an important source of profit for manufacturers.
First of all, the number of head brands operating users is very impressive.According to Hisense released the latest Internet TV user data shows that in 2017 the number of users exceeded 30.78 million (25.21 million domestic users, foreign users 5.57 million); early last year, Skyworth's Internet TV Cool brand announced that Internet terminals in mainland China have exceeded 20 million.
Hisense, Skyworth Vigorously develop the number of Internet TV users, mainly by means of large-screen Internet, to better promote content operations, increase revenue.According to public information, only one year in 2016, Hisense Internet TV paid VIP members increased 8 times , Kukaishi has made more than 100 million yuan of operating income.
Second, the value of large-screen Internet operations is accelerating.
From the content point of view, Internet TV in the construction of home entertainment scene, not only make up for the traditional TV content defects, but also entertainment, consumer, education, which extends the user viewing time.According to the electricity through the Anjis Group "OTT consumption White Paper on Insight and Business Value Studies "shows that over 53% of users run OTT for more than 2 hours on an average daily basis.From the business model, in addition to advertising, affiliate marketing also drives the growth of television business.From the number of users, the current OTT is still in an incremental market stage, there is still much room for development in the future.
According to Orville cloud network data, as of the end of 2016, the number of OTT terminals (smart TVs and boxes) in China was 213 million and it is estimated that the number of OTT terminals in China will exceed 400 million by 2020. In addition, according to Gozendata Data show that in 2017 OTT advertising revenue of 2.3 billion yuan, an increase of 130%.
Nail technology, from the supply chain, market competition and other aspects, the TV hardware profits will gradually decline, so for color TV companies, we must pay more attention to the construction and upgrading of large-screen Internet operating capabilities, while expanding the base of operational users at the same time , To explore a reliable business model.