At the recent Lexun 2017 Annual Shareholders Meeting, LeTV.com revealed that LeTV's new products will be launched in the second half of the year. This means that the long-lost LeTV will either be 'returned to the rivers and lakes'. However, the rivers and lakes are not the rivers and lakes, pure Where the Internet TV brand goes, it is also a 'hard' problem.
LeTV TV will release new products in the second half of this year
Recently, LeTV.com held the 2017 Annual General Meeting of Shareholders in Beijing to review the 2017 Annual Report. LeTV and Lerong Zhixin (formerly known as Leshi Zhixin) applied for loans from Tianjin Jiarui, which is a subsidiary of Sunac, and applied for comprehensive credit to financial institutions such as banks. 18 items such as quota.
Regarding the TV business plan, Liu Shuqing, Chairman of LeTV, said that the future development of Lerong's new business will promote the performance of LeTV's listing system, which is in line with the company's sustainable development direction and long-term interests. Especially in the current company's overall situation has not yet emerged from the financial difficulties In the case of the company, the management of the company made every effort to restore the service capabilities and content advantages of Super TV for users.
Liu Shuqing said that other business sectors of listed companies are also facing heavy historical debt and financial difficulties. At present, all employees of the company are still making every effort to explore business development opportunities and have realized local business innovation. In addition, in the short video business field. I made a preliminary attempt and the team is actively promoting it.
It is worth noting that Liu Shuqing revealed that LeTV will continue to combine its own software, hardware production and research advantages, content Internet operation advantages, and further strengthen the company's product capabilities this year. The new generation of super TVs is nearing completion and will be put into the market in the second half of the year. The new generation of super TVs will be more in line with the needs of home smart entertainment scenes. This means that the long-lost LeTV TV products will be re-emerged this year.
The market pattern has changed greatly
LeTV has to have new products, but the 'jianghu' of Internet TV has been very different.
The lack of a key battle such as the World Cup may be the clearest manifestation. At the beginning of June, the State Administration of Radio, Film and Television released a notice for the 2018 World Cup, according to the “Requirements for the Operation and Management of an Internet TV Licensing Authority” (2011) No. 181, ' The Internet TV content service is mainly to provide users with video-on-demand and graphic information services, and does not provide services for live broadcast of broadcast and TV programs.. Thus, for the live broadcast service of the 2018 World Cup, Internet TV platforms within the OTT range are not allowed to perform. The live broadcast and time-delay broadcast of the event can only be provided on-demand service after the end of the event; at the same time, the Internet TV integrated broadcast control platform will also increase the review of the content of the World Cup live content APP. If the World Cup broadcast content is included, the Access.
In the broadcast of this World Cup, only Youku and Mimi spent a large sum of money on copyright from the Central Radio and TV Station. This situation may not happen two years ago.
Since 2013, LeTV and Xiaomi have led the Internet TV products in the market. A lot of internet companies have no background in the physical industry have created new brands to attract investors to save money. The Chinese TV market is in a fitful situation. Mutation, branding.
According to public statistics, LeTV sold 1.5 million units, 3 million units and 6 million units in 2014-2016. In February last year, Le Jun, the new president of Le Rongzhi, even announced that LeTV’s sales target in 2017 was set as 7 million units compete for 8 million units'. However, as the LeTV debt crisis erupted, LeTV brand was seriously affected. LeTV sales also fell.
From the end of 2016, Internet TV is no longer the same, and the market landscape is very different.
Internet giant blesses traditional TV makers
Traditional TV manufacturers undoubtedly witnessed the 'splashes' of Internet TV brands, but they held their ground.
With the notion of pure-internet TV brands such as LeTV, the Internet TVs of traditional TV manufacturers have begun to take off. It is even more remarkable that the Internet giants of traditional TV manufacturers frequently appear as Internet giants.
From the end of last year to the first half of this year, TCL's Thunderbird Technologies and Skyworth's CoolOpen have successively obtained internet giant blessings.
In May of this year, Thunderbird Technology introduced Jingdong as a strategic investor. Jingdong subscribed for Thunderbird Technology's new shares for RMB 300 million. After this capital increase, Thunderbird Technology owns 6.67% of the shares. Last year, Tencent also acquired shares. Thunderbird became the second largest shareholder of Thunderbird. In March of this year, Baidu made a share of 1 billion shares and became the second largest shareholder of CoolSea.
The introduction of strategic investment by the Internet TV brands under the traditional TV manufacturers is actually behind the strategic investors. In fact, TV giants such as Skyworth and Tencent and Baidu and other Internet giants frequently encrypt their data. A similar strategic layout will undoubtedly become a traditional TV in the market. The powerful chips of the pure Internet TV brand 'fighting' may even have the effect of 'killing the enemy invisible' over time.
OEMs decide that low-price strategy is difficult to maintain
In 2015-2016, when the Internet TV brand struggle was fiercest, LeTV, Xiaomi and other pure Internet TV brands actually led a wave of low-price competition. However, the time jumps to 2018, and this strategy has almost no way to survive. Words.
In fact, many consumers are not aware of the fact that some of the Internet TVs they watch are not part of the TV sets produced by the Internet TV brands. Taking Xiaomi as an example, its television production and TCL are engaged in Cooperation.
Previously, TCL Group Co., Ltd. clearly stated on the investor interaction platform that the company and Xiaomi had cooperation in television manufacturing and mobile phone screens. In response, TCL Group Chairman Li Dongsheng explained that TCL and Xiaomi are upstream and downstream in the display business. Partner relations.
Specifically, on TV panels, TCL and Xiaomi have upstream and downstream cooperation. At present, TCL's China Star Optoelectronics is a leading company in the domestic panel display industry. Many of its customers have Xiaomi's presence. The business is in competition with Xiaomi. We are an upstream and downstream relationship in the display business. ' Li Dongsheng said.
'Internet TV companies lack an effective supply chain and do not have the right to speak on their own,' said Lu Jiebo, deputy secretary general of the China Electronics Chamber of Commerce.
In the whole year of last year, TV LCD panels were in a state of continuous price increase, which resulted in a significant reduction in the profit margins of the entire machine manufacturer, and Internet TV companies relying on OEMs were less likely to have much price marketing space.
Liang Zhenpeng, an appliance analyst, believes that the development of Internet TV is characterized by low quality and low price. Consumers have already formed a perception of Internet TV. If it is not a low price, there is no reason to buy it. However, last year, the Internet TV brand gradually could not afford it. Loss. Liquid crystal panel prices soared, rising by 50%-100% according to different sizes, and LCD panels accounted for more than 50% of TV manufacturing costs.
Future or content rather than hardware
In April of this year, LeTV.com announced the new LeTV Wisdom Replenishment Plan, confirming that TCL, JD.com, Suning and other companies will participate in the latest round of financing of New Music Vision.
At present, traditional TV manufacturers regain their advantages in the game with Internet TV companies. LeTV, as a result of the music crisis, has lost consumer confidence. Under such circumstances, LeTV wants to rejuvenate, which is a long way to go. .
According to Lu Jiebo, deputy secretary-general of the China Electronic Chamber of Commerce, last year, the market share of Internet TV was only 10%, while that of foreign brands was 15%. Domestically produced TV brands accounted for 75% of the market share and remained the main force.
Where is the future of Internet TV companies? The answer may be content operations and ecological construction.
It is worth noting that just last month, Skyworth CEO Kai Zhiguo publicly stated that Cool Open has stripped TV business, and 'Super Intelligent System Ecology' will become its future development keyword.
The Nanfang Daily reporter was informed that Cool Kai has plans to go public independently. Since April 1st, the TV business has been stripped off, and it will focus on building an open and unified super-intelligent system ecosystem and tapping the commercial value of large-screen.
At present, the core of the cool-open super-smart ecosystem is system support. The foundation is advertising revenue. It depends on product quality and user reputation. It is a kind of thinking that focuses on user needs.
Insiders pointed out that independent listing means that Cooler can't rely on a single business model relying on hardware such as TV. It is imperative to build an intelligent ecosystem with an open platform. At the same time, Skyworth and Baidu have reached Close strategic cooperation, Cool Open has the blessing of Baidu Capital, and also added a lot of capital and ways to build a super-smart ecosystem.
Cooling such a 'mutation' may be a weather vane for the development of Internet TV.