SARFT made new regulations, Internet TV is difficult

In recent years, SARFT has smashed a series of regulatory documents in the field of living room Internet TV and cracked down on Internet TV brands' illegal access to uncensored content, but it was like a game of “cats and mice”, always in the gray zone. The tug of war was staged. It can be seen that another round of comprehensive rectification campaigns for Internet TV has begun.

The strong intervention of radio and television, and the full rectification kicked off as if “there are policies and countermeasures to deal with,” and Internet companies such as LeTV, iQiyi, and Youtu have also exported content to smart TV terminals in a disguised manner. The "guerrilla warfare" may be difficult for the Internet-based TV companies breaking into the parlors to form a sustained competitive power.
According to industry sources, the underwriting of regulatory documents is borne by smart TV companies such as LeTV and Xiaomi. These companies often adopt the “terminal + content” binding model, and therefore continue to hype and generate momentum in the price of smart TVs. Consumers pay attention, and then have a certain user and terminal coverage, to profit through the realization of content and services. LeTV even played a "hardware free" gimmick, invading the living room by way of cost below cost. However, with the escalation of regulatory policies, fierce attacks by companies such as LeTV and Xiaomi will be curbed, and business models will be directly affected. In comparison, traditional home appliance companies have suffered less.
Internet TV sound volume weakened. The short-board was obviously learned that since LeTV and Xiaomi and other Internet TV brands announced their entry into the smart TV field, the expansion was rapid, the volume was huge, and the surface looked very lively, but apart from LeTV's shipments having certain scale characteristics, Most of the rest of the Internet, such as millet and storm, stayed at a relatively small level of shipments. They did not have the advantage of scale, and it was even more difficult to achieve commercial realisation. Today, the voice of the bad-mouthed Internet TV brand also believes that there are three major "defects" in the Internet TV brand, and some are "fatal injuries" that are difficult to improve in the short term.
The first is to adopt a capital-driven model. Business logic is to maximally circulate users through the use of methods such as burning money and subsidies, and then, after having large-scale users, package so-called user numbers in exchange for capital-level attention. It is not so much a subversion of the traditional TV industry that it is more like a dream of an elusive smart TV. Take LeTV as a super TV, in the first half of the year through hardware free crazy promotions, stimulating the conversion of paid members, this kind of gimmick marketing is indeed "powdering" effect is obvious, a large number of users because of the concept of free to buy music as super TV, in fact, this belongs "Induced" purchases have a great deal of "moisture", and the hardware has to pay a very high price.
The second is to make ends meet. The premise of the hardware selling below the cost price is to be able to recover costs in other ways. But at present, the “truth” that LeTV's LeTV has caused a huge loss has long been exposed and questioned, not to mention Those emerging brands that have just entered the market. According to statistics, in 2015, LeTV’s revenue from the new film industry was approximately RMB 8.7 billion, and its operating loss was RMB 974 million. The 2014 financial report also showed that LeTV’s operating loss for the new year was as high as RMB 503 million and net loss was RMB 386 million.
Third, there is a huge difference between the market and size of smart TVs and mobile phones, and the complexity of industrial chains and supply chains is also much greater. The more important point is that the market capacity is limited. Looking at the overall sales volume of the domestic TV market, the annual sales of about 43 million units, of which smart TV is 38 million units, almost all Internet brands compete for 30% of online sales, which means that more than 20 brands are madly snatching Less than 10 million smart TV online sales, Le Shi, Xiaomi, Konka KKTV, Skyworth Cool Open, etc. have taken the most part out of the country. Storms, popularity, and other Internet brands, although they have a lot of voices, but even if the loss of hundreds of millions, can not get To 100,000 sales, there is no scale operation effect.
At the same time, some experts said that the unified scrutiny of SARFT is to link Internet television access, user operations, and payment systems to the body of radio and television, rather than the market-oriented Internet companies. This is undoubtedly worse on Internet TV, that is, as long as this rule does not change, Leshi, Xiaomi and other companies can only be the role of smart TV terminal suppliers, can not form an ecological chain. Perhaps because of the policy curse effect of the Chinese market, recently, LeTV had to acquire Vizio, a smart TV company in the US, at a high premium and instead seek to break through the North American market. This is also a difficult move in the domestic market and the next best thing to do.
Traditional household electrical appliance companies attacked the group, and the counter-offensive trend became stronger. On the other hand, this policy high pressure provided a “buffering period” for the traditional household electrical appliance enterprises that were in transition, and at the same time greatly weakened the competition of Internet TV companies. force. Some people in the industry have stated that home appliance companies are "smart" and that the Internet TV industry itself is in an uncertain state. It is very easy for a company to take a hit. The traditional home appliance companies stand behind the Internet companies, groping, practicing, and accelerating the transformation. , Quickly realize cash, on the other hand can avoid embark on the policy of "minefield."
It is said that in 2016 traditional home appliance companies have begun to fight in groups. Konka, Hisense and Skyworth have formed an alliance system to implement unified negotiations and docking on the realisation and value-added services of Internet TV advertisements, and to the Internet of LeTV and Xiaomi. Enterprises pose a considerable threat, and at the same time, they initially form a scale in the revenue of Internet TV. This is a new phenomenon after fierce confrontation among the five major home appliances companies. The goal is to enhance the voice and appeal of traditional household appliance companies. The new joint energy can effectively avoid being “disintegrated”, change the behavior of past self-governance, and unite against Internet brands. It can be seen that at the level of benefit sharing and strategic direction, the three companies of Konka, Hisense and Skyworth have already become a co-opetition relationship.
The traditional view is that home appliance companies are declining and it is difficult to form an innovative operating model in the Internet era. However, this argument is clearly becoming a thing of the past. Zhang Cong, deputy general manager of Konka’s Internet Division, stated that after several years of exploration and practice, traditional home appliance manufacturers have long been no strangers to the Internet. Although they have been detours, Konka and Skyworth’s operations in smart TV Internet business operations Hisense, Hisense and others have already started on the right path. Coupled with the advantages of manufacturing, supply chain, and channel advantages, this is precisely the shortcoming that the simple Internet companies can hardly make up in the short term.
On the one hand, SARFT has repeatedly ordered the "interruption" of Internet companies' illegal operations. On the other hand, traditional home appliance companies are "backlashing" in Internet business innovation and exploration. The combination of the two forces further boosted the sound and strength of traditional home appliance companies. Just as the pattern of the smart phone market has changed, the performance of Internet brands has been declining. Even Xiaomi has performed poorly. Huawei, Vivo, OPPO and other traditional mobile phone brands have taken over. The same story reversal will occur in the smart TV market. Traditional home appliance companies must be a force that cannot be ignored in the Internet TV business segment.
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