The former "upstarts" have suffered setbacks and Internet TV has collectively "survived the winter"
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The annual "Double 11" promotion is approaching, and the battlefield is filled with smoke, but it is difficult to see the presence of Internet TV brands. The Internet brands that entered the TV circle in a high-profile manner in the past two years are no longer in the limelight, and their market share has dropped significantly. Affected by the rising prices of raw materials, many brands are in a dilemma of "not being able to afford to burn money". The former Internet TV "upstarts" are now collectively spending the winter, and some small brands with insufficient financial strength are facing elimination at any time. The former "upstarts" have suffered setbacks. In the past two years, various forces have entered the field of Internet TV and once became the "upstarts" in the TV circle. However, the good times did not last long. Some of these former "upstarts" have encountered development twists and turns, while others are experiencing a "life and death disaster". Recently, the Internet TV brand "Kan Shang" was exposed to layoffs and arrears of arrears to suppliers. The reporter asked "Kan Shang" for confirmation, and a staff member confirmed that the company is currently optimizing its personnel and adjusting its structure, and explained the reason, saying, "The panel cost has risen, and the industry has encountered a cold wave, so the company is adjusting its business structure." "Kan Shang" is expected to announce the results of the adjustment next month. Without completing the structural adjustment, no new products will be launched for the time being. At the same time, "Kan Shang" admitted to delaying the settlement of project funds, but said that the temporary extension was made under the consensus of both parties. As the "head" brand in the industry, the setbacks encountered by LeTV TV are almost fatal. Since last year, affected by the crisis of LeTV system, the industry expects that LeTV TV's annual sales this year will not exceed 2 million units, which is only one-third of the sales of 6 million units last year. At the beginning of this year, LeTV had made a wish of "maintaining 7 million and striving for 8 million units", which now seems out of reach. LeTV TV, which is in crisis, has recently been plagued by rumors of "selling itself". "LeTV TV is licking its wounds, and whether it can continue to survive remains to be seen." Cui Jilong, deputy director of research at the display device and system division of Aowei Cloud Network, believes that LeTV TV has accumulated a large number of users in the past two years and actually has the opportunity to continue to expand its operations, but LeTV has been repeatedly involved in various public opinion whirlpools recently, causing the outside world to be more pessimistic about its unexpected prospects. The business model is a bit unplayable. Behind the experience of LeTV and "KanShang", two Internet TV brands, is the silence of the entire industry. Unlike traditional TV brands that are obsessed with hardware and picture quality, Internet TV chose a different track at the beginning of its birth - through cheap hardware, it has acquired and operated users and made money from content. Since 2015, more than 10 emerging Internet TV brands have entered the market, and almost all brands follow this "no problem" business logic and rely on capital to grab users. Data shows that the market share of Internet TV was as high as about 20% in the middle of last year, but the latest statistics show that the market share is only 12%. The collapse of LeTV and the decline in Baofeng's stock price have made the business model of Internet TV questionable. Since the end of last year, the price of TV panels has continued to rise, and the panel accounts for more than 60% of the cost of the entire TV, which has increased the cost pressure of Internet TV brands sharply. "Many Internet brands suddenly found that they can't afford it." Cui Jilong said that traditional brand TVs are relatively less affected by the price increase of panels because they have a complete industrial chain. Hong Shibin, an expert in the home appliance industry, also believes that television cannot be separated from hardware after all. The traditional TV brands have turned to the Internet, and the squeeze on Internet TV is obvious. In addition, the scale of Internet TV users is much lower than expected, and capital has gradually lost patience. "The concentration of the TV industry itself is not high, and the competition is very fierce. With so many Internet brands breaking in, it is even more difficult to acquire users." Cui Jilong said. According to the data he provided, in terms of the current number of users, LeTV TV has the largest number of users, about 10 million. Xiaomi TV, which ranks second, is expected to sell about 2 million units this year, and the cumulative number of users may be more than 4 million. Others such as Weijing, PPTV, and Baofeng generally sell no more than 1 million TVs, and the number of users is only a few hundred thousand, which is obviously far from expectations. Who can survive the winter? It is almost common knowledge that Internet TV loses money for every unit sold. Feng Xin, CEO of Baofeng Group, once revealed that every Baofeng TV sold last year would lose 300 to 400 yuan. Relying on content to subsidize hardware, although it looks beautiful, it cannot escape the reality of losses. Internet TV has failed to bring about sustained changes in the industry, and has instead fallen into a survival crisis. Rising costs have resulted in greater losses for each unit sold. If prices are raised directly, Internet TVs that lack brand appeal will be even harder to sell. Cui Jilong analyzed that in a dilemma, basically all brands have stopped their efforts and are trying to survive first to see if there will be a turnaround next year. Industry insiders generally believe that it is not surprising that some small Internet TV brands cannot sustain themselves financially and fall. Some Internet brands rarely have new products nowadays, and have almost no "presence". In contrast, traditional TVs have launched their own sub-brands in the game with Internet TVs, such as Skyworth Coocaa, Konka KKTV, Hisense VIDAA, TCL Thunderbird, etc., and the gap in content with Internet TVs is already very narrow. As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity. |
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