Competing with the Internet TV industry, how did each win?
At 7pm on August 13, 2015, micro-whale TV will be officially released. This no-name new company got the investment of two big giants of Ali and Tencent, and the start-up capital is known as 2 billion. This new company has been able to make such a big investment because its founders are not at liberty.
Just released micro whale 4K TV hardware is still very good, quad-core A53 supports 4K TV chips, 2G memory, 8G flash memory, LG's 4K screen, optimized speakers, but the current market price of 4K TVs are not difference. The killer is the content of the micro whale, known as Hollywood blockbusters to see, the largest Chinese video library, the English Premier League, China team's sports content, can be considered luxury. Li Ruigang was wearing a black round neck T-shirt on his promotional photos. He held his arms in his arms and smiled. He showed a white teeth and looked confident.
The living room is a big market. From Xiaomi to LeTV are competing. Xiaomi starts with hardware. Let's start with the content. Today's new micro whale has a strong background and funds and wants to get involved in the living room. Where does the temptation of this market lie?
One, the temptation of the living room
No matter what the industry is doing, it is ultimately about making money instead of doing charity. The TV in the living room is still the largest screen in the home. From the perspective of experience, though there is a mobile phone and a tablet, TV is still the best solution for experiencing. Eyeballs mean the economy.
The first is the sales profit of TV hardware, which is a traditional household electrical appliance manufacturing profit. Although the profit margin is meager, because of the large market capacity, the flow of water is still very considerable.
In addition to hardware, there is a big charge for the content. The newly established microwhales and LeTV are a way of thinking. I charge you a few hundred yuan a year and provide you with content. You can get high-definition viewing rights. Every year there is income. This idea is in fact similar to cable television and pay channels. Content is sold directly.
Another piece is advertising revenue. Letv boot is a piece of advertising, Samsung in television in Australia engaged in this, television regularly download ads from the Internet, and even triggered the user's complaints.
These three pieces constitute the main expected revenue of Internet TV, and follow-up can also have many incidental options. For example, the shopping platform, game platform, and O2O service can generate revenue, and the potential is still very impressive. Therefore, smart TV, the entrance to the living room, was watched by many manufacturers.
Second, the problem of making money
However, although the living room market is theoretically lucrative, it does not make much money in China. Not long ago, LeTV and Xiaomi were black and they were exposed to a loss in the TV hardware business.
LeTV’s profits actually come from the distribution of copyright, and this business does not occupy the living room.
In terms of hardware sales, LeTV has ranked eighth in online rankings, and 5.4% is not low. But considering the proportion of sales under the TV line, it is difficult for users to change anything.
In content, China has been contempt for copyright protection for many years. Allow users to not pay for the habit. Do not like tossing, honest TV watching, love toss, naturally have access to free content.
And now that the content is highly competitive, YouTube video sites such as Youku Potato Idyll will provide free content. Only high-quality content will be available, but the percentage of fee-paying members will not be enough to offset the cost of copyright.
Advertising revenue is a double-edged sword, because Internet TV's advertising itself has traffic costs. Advertising also affects the user experience. Both LeTV and Samsung are complained.
Therefore, although Internet TV has great potential and great temptation, it is still very difficult to turn potential into profitability. The potential for making money may not be able to make money.
Third, what kind of manufacturer will have a show?
(A) The channel is very important
There is a difference between a living room TV and a smart phone. On the one hand, the replacement frequency of the living room TV is relatively low, and the mobile phone is updated in a year or two. The television needs at least 3 or 5 years. In addition, the TV is relatively large and involves installation, warranty, and offline market is very important.
Therefore, to popularize a brand of television, you can't just do online. No matter what the brand is, if it falls into the channel, there will be sales.
In fact, although Xiaomi’s mobile phone started online, it also accounts for a large proportion of the actual volume. It is not possible for Internet TV to be sold only on the Internet.
(b) service is very important
Outside of the channels, services are also important. For Internet TV to receive membership fees, people who don't like tossing can't be expected. Love tossing people will handle all kinds of free high-definition content, what 3D, 4K, 10bit, what you offer, they are not.
If you want to sell your membership services to those who don't like tossing, you have to do a good job. The door-to-door delivery is not enough. To debug the users, you can turn on the TV and you can watch programs smoothly. Users will use your service, even the quality of the network. Also to help users think of solutions, user experience is good, paying members will be a matter of course.
(three) experience is very important
Users buy your TV because your TV hardware is better. Not because you bring content, other homes do not, other homes do not, users can not buy boxes, do not buy your TV. The nature of Internet TV is still TV. The TV experience is good. The basic functions of size, quality, sound quality, price, appearance, and workmanship are not bad.
In terms of content, the important thing is not so much, but because you want to see what you can provide. There are so many Chinese-language films. Users can't see the new movie is no good. The problem with content is not the quantity, but the user's favorite to see.
Advertising influences the experience is inevitable, but can not let the impact of advertising a little less? Turned on dozens of seconds of advertising is really good? The use of movies up and down the black side to put some small ads are not happy?
There are many ways for Internet TV to make money, but in essence it is a word “quantityâ€. Selling much will result in hardware profits and running water; selling more and paying members will be more; selling more advertisements will have value, then asking prices; selling much more. There may be shopping, games, O2O entrance.
It sells much more, content depends on experience, external resources rely on channels, services, and publicity. Not having content resources can make a big profit. Internet TV is ultimately a TV, so don't put the cart before the horse.
The founder of Li Ruigang was tagged as a “media geek,†but in fact he left the system in June this year and no longer serves as chairman of Shanghai Media Group (SMG). Before that, he served as deputy secretary general of the Shanghai Municipal Party Committee. Li Huaiyu, who is partnering with him, is his partner in IPTV. This micro whale has a considerable background.
The living room is a big market. From Xiaomi to LeTV are competing. Xiaomi starts with hardware. Let's start with the content. Today's new micro whale has a strong background and funds and wants to get involved in the living room. Where does the temptation of this market lie?
One, the temptation of the living room
No matter what the industry is doing, it is ultimately about making money instead of doing charity. The TV in the living room is still the largest screen in the home. From the perspective of experience, though there is a mobile phone and a tablet, TV is still the best solution for experiencing. Eyeballs mean the economy.
The first is the sales profit of TV hardware, which is a traditional household electrical appliance manufacturing profit. Although the profit margin is meager, because of the large market capacity, the flow of water is still very considerable.
In addition to hardware, there is a big charge for the content. The newly established microwhales and LeTV are a way of thinking. I charge you a few hundred yuan a year and provide you with content. You can get high-definition viewing rights. Every year there is income. This idea is in fact similar to cable television and pay channels. Content is sold directly.
Another piece is advertising revenue. Letv boot is a piece of advertising, Samsung in television in Australia engaged in this, television regularly download ads from the Internet, and even triggered the user's complaints.
These three pieces constitute the main expected revenue of Internet TV, and follow-up can also have many incidental options. For example, the shopping platform, game platform, and O2O service can generate revenue, and the potential is still very impressive. Therefore, smart TV, the entrance to the living room, was watched by many manufacturers.
Second, the problem of making money
However, although the living room market is theoretically lucrative, it does not make much money in China. Not long ago, LeTV and Xiaomi were black and they were exposed to a loss in the TV hardware business.
LeTV’s profits actually come from the distribution of copyright, and this business does not occupy the living room.
In terms of hardware sales, LeTV has ranked eighth in online rankings, and 5.4% is not low. But considering the proportion of sales under the TV line, it is difficult for users to change anything.
In content, China has been contempt for copyright protection for many years. Allow users to not pay for the habit. Do not like tossing, honest TV watching, love toss, naturally have access to free content.
And now that the content is highly competitive, YouTube video sites such as Youku Potato Idyll will provide free content. Only high-quality content will be available, but the percentage of fee-paying members will not be enough to offset the cost of copyright.
Advertising revenue is a double-edged sword, because Internet TV's advertising itself has traffic costs. Advertising also affects the user experience. Both LeTV and Samsung are complained.
Therefore, although Internet TV has great potential and great temptation, it is still very difficult to turn potential into profitability. The potential for making money may not be able to make money.
Third, what kind of manufacturer will have a show?
(A) The channel is very important
There is a difference between a living room TV and a smart phone. On the one hand, the replacement frequency of the living room TV is relatively low, and the mobile phone is updated in a year or two. The television needs at least 3 or 5 years. In addition, the TV is relatively large and involves installation, warranty, and offline market is very important.
Therefore, to popularize a brand of television, you can't just do online. No matter what the brand is, if it falls into the channel, there will be sales.
In fact, although Xiaomi’s mobile phone started online, it also accounts for a large proportion of the actual volume. It is not possible for Internet TV to be sold only on the Internet.
(b) service is very important
Outside of the channels, services are also important. For Internet TV to receive membership fees, people who don't like tossing can't be expected. Love tossing people will handle all kinds of free high-definition content, what 3D, 4K, 10bit, what you offer, they are not.
If you want to sell your membership services to those who don't like tossing, you have to do a good job. The door-to-door delivery is not enough. To debug the users, you can turn on the TV and you can watch programs smoothly. Users will use your service, even the quality of the network. Also to help users think of solutions, user experience is good, paying members will be a matter of course.
(three) experience is very important
Users buy your TV because your TV hardware is better. Not because you bring content, other homes do not, other homes do not, users can not buy boxes, do not buy your TV. The nature of Internet TV is still TV. The TV experience is good. The basic functions of size, quality, sound quality, price, appearance, and workmanship are not bad.
In terms of content, the important thing is not so much, but because you want to see what you can provide. There are so many Chinese-language films. Users can't see the new movie is no good. The problem with content is not the quantity, but the user's favorite to see.
Advertising influences the experience is inevitable, but can not let the impact of advertising a little less? Turned on dozens of seconds of advertising is really good? The use of movies up and down the black side to put some small ads are not happy?
There are many ways for Internet TV to make money, but in essence it is a word “quantityâ€. Selling much will result in hardware profits and running water; selling more and paying members will be more; selling more advertisements will have value, then asking prices; selling much more. There may be shopping, games, O2O entrance.
It sells much more, content depends on experience, external resources rely on channels, services, and publicity. Not having content resources can make a big profit. Internet TV is ultimately a TV, so don't put the cart before the horse.
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