On the "double 11" day this year, the online e-commerce platform sold a total of 2,057,000 TV sets. According to statistics from a third-party market research agency, only two of the top ten Internet TV brands have ever dropped out of the top ten.
Internet TV is a new technology that uses broadband cable television networks and integrates Internet, multimedia, and communications technologies to provide users with multiple interactive services. In layman's terms, Internet TV is a new business model created by Internet companies, namely "hardware free, content charging." It is understood that Internet TV relies on the sharing and integration of network resources, bringing massive amounts of content to users, and its market has been blow-through development. However, since the beginning of this year, its growth rate has slowed down and its market share has dropped significantly. Some people even called 2017 as the “out-year of Internet TVâ€.
Weak growth
It is understood that due to the fact that Internet TV can bring consumers experiences that traditional TV can not achieve, after the market was formally asked in 2010, it was fully affirmed by consumers and developed rapidly.
Internet TV has attracted attention with good market prospects. The industry estimates that according to the 400 million households, each household to pay 300 yuan per year content fee calculation, China's annual market size is 120 billion yuan; hardware in accordance with 3,000 yuan / Taiwan, 5 years for a conversion of 240 billion yuan annually. Together, the two are more than 3,000 billion yuan in market size.
Since 2012, capital inflows have rushed in and the scene has been hot. In 2013, as Internet companies represented by music as the "barbarians" airborne TV field, quickly opened the market with low-cost and high-matching models, the entire Internet TV also ushered in the stage of rapid development.
With the participation of various capitals and related policies, the annual sales volume of Internet TV will exceed 30 million units in 2015. In 2016, the penetration rate of Internet TV is as high as 84.7%, and the market penetration rate and TV average price are The average consumption size surpasses that of North America and Western Europe, ranking first in the world.
After experiencing rapid growth, the Internet TV market has begun to flatten. LeSpot was considered as a "squid" in the television field. While exerting pressure on traditional TV makers, it also stimulated their transformation. It also drove the start-up and development of Internet TV manufacturers.
However, relevant monitoring data show that in the first quarter of 2017, LeTV’s market share has dropped from 2.6% in the same period last year to 1.4%, dropping out of the top 10. According to data released by China Health, LeTV's sales from January to July accounted for more than 50% of the year-on-year decrease; sales of the “618†e-commerce provider had a year-on-year drop of 57%.
In addition, the market lost by LeTV was not occupied by other Internet TV brands, and the overall market share of Internet TV was declining. "Internet TV accounts for more than 85% of the market's sales, but the traditional TV market is also good, and there is a pick-up trend." Sales manager of a comprehensive shopping mall in Fuzhou told reporters.
Inadequate capacity for sustainable development
It is understood that the downturn of Internet TV has a lot to do with the continuous rise in panel prices. In hardware, the panel accounts for more than 60% of the cost of the complete machine. The price increase period of this panel is as long as 14 months, which is the longest in nearly 5 years.
With the explosive development of Internet TV, there are problems such as disorderly competition. As the market is optimistic, various capitals have joined. Especially in the two years from 2014 to 2015, this market has just taken shape, but it has ushered in a round of vicious competition. There is a phenomenon of “you sell TV to send members, and I sell members to send TVâ€.
"When hardware and technology are developed to a certain stage, it will be difficult to achieve even greater breakthroughs. Inevitably, homogenous competition will intensify. If companies cannot stand the test of the market, they will only be able to leave." According to industry sources.
In addition, consumer satisfaction with Internet TV content is also declining. The source advantages of various third-party platforms are different. It is difficult to meet the viewing requirements on one platform, but at the same time multiple platforms are purchased, and more than 80% of the content is duplicated.
Zhu Sihai, Director of the Industry Department of the Development Research Center of the Fujian Provincial Government, believes that the profit model of Internet TV operation is different from the profit model of traditional TV industry hardware sales. It mainly relies on the sale of membership to realize the profit of video content, and the money is burned on hardware. The content is homogenous. Change. The Internet TV industry is looking for a way out in development. Differentiated, value-added services are the key, rather than blindly low prices.
Due to the high service life of TV products, the replacement of products in the hands of users is relatively slow. In the competition of the television product group, the high-cost panel raw materials are destined to the characteristics of its products are not suitable for the price war. Internet manufacturers do not have the panel manufacturing capability, which results in insufficient capacity for sustainable development.
The so-called technical strength is that for the panel's ability to tune, TV is undoubtedly one of the highest-required product lines in the display technology field, which also results in a relatively high level of product depth for TV products, with flagship machines of the same size being several tens of thousands of yuan. A few thousand dollars for a terminal brings completely different results to what consumers are pursuing.
For example, the sales of Xiaomi TV 4A are hot, this is a product that focuses on the pro-people market, and the relatively high-end, but also more expensive, millet TV 4 has little interest. Many consumers said: "With the same money, why don't we buy Hisense, TCL, or even Sony or Samsung?"
Profit model to be broken
The development of Internet TV technology depends on the iteration of new technologies such as artificial intelligence, and new technologies are constantly advancing. In this regard, the industry pointed out that the Internet TV industry still has its development time and space, and the current layout in the field of artificial intelligence is still in its infancy. Some Internet TV brands have problems and cannot be attributed to Internet TV.
In addition, the TV itself is a durable product. According to the smart TV replacement cycle, the two years are in the middle of the replacement period. In addition, there is no significant breakthrough in the design and technology of smart TVs, so it is difficult for users to change their motivation.
The biggest problem faced by Internet companies entering the TV market is hardware. Experts pointed out that traditional e-commerce vendors have been deeply cultivating the television industry for many years and have a relatively complete supply chain management system with strong anti-risk capabilities. They can explore the comprehensive cooperation mechanism between traditional television manufacturers and Internet companies, strengthen technological research and development and commercial cooperation, and strengthen content innovation. Through the docking of smart home life, the Internet TV content will be extended to the outside of the video, giving consumers more value-added services, making television an indispensable network terminal for the family's smart life.
Zhu Sihai believes that there are no particularly successful profit models for Internet companies to enter the TV market, and there are still some problems in content operations that must be resolved. First of all, Chinese consumers are more accustomed to the free content of the Internet and it takes a certain process to cultivate the market. Second, how to effectively integrate and optimize rich content resources. The storage, transmission, and analysis of large amounts of data require strong technical and financial support and require some disruptive innovation.
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