In the past 2017, the reshuffle of the domestic television industry has been further amplified.
According to the "Summary report on China's color TV market in the third quarter of 2017" released by Orvital Cloud, the retail volume of the color TV market in the third quarter was 10.41 million units, down 12.9% from the same period of previous year, making it the worst selling season in history.
Among the major TV manufacturers, Changhong's net profit attributable to shareholders of listed companies in the first three quarters of the Company dropped 67.97% YoY, while Hisense net profit dropped 47.39% YoY and Skyworth slid 85.90% YoY.
Earlier when the financial crisis broke out in 2016, there was a rather optimistic tone in the television industry that LeTV's expansion in copyright, and especially sports copyright, will enter a contraction period. The market share of LeTV, which lacks sports copyright protection, will be transferred to television industry.
However, judging from the current situation, the acquisition of copyright by Music and Television Sports Sports Sports has stopped completely. Recently, Lei Zhen-Jian, CEO of Music and Entertainment Sports Co., Ltd., has been released. There is also a marked decline in the sales of music and TV without copyright blessing.
However, even if music suffered a serious problem, but several TV giants of the third quarter of the point of view, music television market share does not seem to transition to Changhong, Hisense, Skyworth and other manufacturers.Then the television industry what happened, who is real Become a vested interest in this round of reshuffle it?
As a pioneer in Internet TV, LeTV advocates 'hardware free' theory, trying to make up for the hardware costs through the content ecosystem.
Nowadays the whole process of music video as a whole, throw away financial and other issues, the Internet TV theory has the following fatal flaws:
First, the price of hardware has been significantly affected by the market, with the soaring prices of TV panels in 2017 and the increase in TV hardware costs, it is unrealistic to blindly subsidize the hardware with contents realized.
Second, content copyright costs are high. According to a data at the end of 2016, LeTV holds 310 sports titles and broadcasts more than 16,000 live games throughout the year, including MLB, NFL, Tour de France and even the American University Sports in the Pacific Federation, etc., the high financial costs, music ecology is based on the very high cost of the foundation.
LeTV decline rapidly, Internet TV camp also suffered a blow.OvY cloud network data show that in 2017 the Internet TV market share fell 6 percentage points to 13%.
However, in the specific operation, we also see that the Internet TV camp is still connected with generous hand. For example, in terms of copyright, PPTV hit 1.3 billion yuan to get the super copyright. As of now, it has already got over 30 titles including La Liga and Premier League Class League, almost all but the hottest events outside the NBA, including 1.3 billion yuan of Super copyright costs only 50 million less than the music.
On the one hand, panel prices have risen and hardware costs have risen; on the other hand, there has been no sign of the Internet TV camp in terms of copyright procurement, which naturally adds tremendous pressure to internet TV manufacturers.
From some of the brand's approach, the industry for the above problems probably have the following practices:
One is the implementation of content output, such as PPTV and millet co-produced a customized version of the TV, the one-way copyright procurement pressure on similar businesses, dilutive procurement costs.But considering the entire industry is facing severe downward pressure, so completely flat off this behavior The cost of purchasing is unknown, but it is almost certainly clear that hundreds of millions of bought rights not only enrich the content ecosystem but also put pressure on operations.
The other is that Internet TV companies cooperate with the content parties on the capital level.Whether the co-operation with Ali Micro-whales TV, or love Fantastic Art and Tencent video to deepen the cooperation of Skyworth's brand cool, its intention is to borrow the Internet content platform, With capital cooperation to reduce procurement costs.
As mentioned above, the current Internet TV suffered unprecedented pressure on the industry market downward pressure greater than the traditional TV manufacturers.Up to now, although the industry in a round of reflection and adjustment, but to some extent is still continuing the music inertia of thinking, That the content of the relevant procurement of copyright remains high.
It is the market's most concern that high content costs can be digested in normal business without the support of hardware sales and affiliate premium actions etc. It is also based on this that I think the Internet TV bubble is still there .
As a pioneer in Internet TV, LeTV was also a leader in the industry at peak time, causing the entire industry to over-disseminate LeTV's inertial thinking, but the market has probably warned the Internet TV industry that it can no longer take the optimistic path.
In 2018 CES (International Consumer Electronics Show) show, Chinese TV manufacturers in terms of hardware innovation can be commendable: such as Konka launched 75-inch 8K TV, Changhong push three-color laser theater, Skyworth launched its own research and development AI quality chip, TCL launched quantum dot TV.
If Internet TV is also able to ramp up hardware research and development and find new balances in content storage and hardware investment while giving up the ability to subsidize hardware and price wars solely on content, then it is possible to free up enough Energy and capital to build a new industry barriers.
From another point of view, we can see that enterprises that have not carried out large-scale burn-in at the end of the content may put more effort into the hardware development and bring the advantages of the traditional vendors' technology and research and development to this. However, this also serves the industry The next development added a glimmer of worries: whether hardware and software can be coordinated growth, such as billions of dollars in content construction of Internet TV brand, followed by the opportunity to have the opportunity to expand the field of hardware.
Prior to the sports copyright owner PPTV exhibited at the CES show laser TV, but we will continue to focus on its continued investment in hardware.
The future development trend of smart TV industry is not entirely clear, but there are basically two affirmations: First, content copyright is still the king, and the copyright is exported. This will be an industry development especially for sporting events suitable for family watching Absolute barriers; Second, the hardware must be pursued diligently, such as laser TV, 8K technology, which is also the opportunity for traditional TV manufacturers, according to Orvite cloud data, traditionally dominated by Japanese and Korean TV makers in the country Only 20% of the market share, if the domestic manufacturers in the hardware technology can achieve full rise, will be an important factor to balance the Japanese and South Korean manufacturers.
For the domestic Internet TV brands, the scale of growth has gradually entered the bottleneck period, the traditional membership revenue model has also been weakening the pulling power of income, the industry began to try to expand channels of revenue with advertising and e-commerce and other means, The industry forecast that in 2018, the share of Internet TV advertising is expected to reach 6 billion yuan, although the growth rate is obvious. However, due to the excessive number of brands in the industry, most enterprises will not be able to get enough food. Difficult to achieve the balance of cost of copyright procurement.
Development is not balanced, it is easy to move the industry to the most basic principle of business: the king of cash flow in the development of smart TV into the second half of the process, the absence of music, hardware prices, which in the industry has added tremendous However, on the other hand, when both hardware and content issues have been fundamentally resolved, the industry will speed up the reshuffle. At that time, based on the principle of being the king of cash flow, whoever can last until the end will become the king.