The TV industry has begun to harvest bubbles. Is Internet TV ready?

How can we leverage the existing market of color TV, which is extremely slow to update? The means of Internet TV brands is to create various "gimmicks" and transfer the major issue of hardware manufacturing to content and software. However, looking back at history, it is not difficult to find that no hardware manufacturing company has made a fortune by relying on software.

The color TV market this year is extremely difficult. The aftermath of the panel price increase is still hurting, and the capital operation that has always liked to add fuel to the flames has also restrained some of its arrogance. The trend of the entire consumer industry's high-end transformation has made many Internet TVs hesitant. The stubbornness of the price war has almost made all brands trapped in the quagmire and gasping for breath. All this seems to indicate that the parabolic ups and downs model of the color TV industry is continuing. The bubble that the stock market fantasizes about will inevitably encounter a harvest in the face of such a sluggish market.

During the May Day sales peak season, the sales of color TVs, which should have been selling well, did not increase. The total sales volume in the domestic market during the May Day period was 1.76 million units, a year-on-year decrease of 13%; the sales revenue was 6.4 billion yuan, a decrease of 2.5%.

Of course, May Day is just a small microcosm. Looking at the first quarter of 2017, China's color TV market shipments were 11.69 million units, a year-on-year decrease of 14%. In the first quarter of this year, China's TV retail sales fell by 12.5% ​​year-on-year, and retail sales also fell by 6% year-on-year.

Let's take a look at the performance of the four major A-share color TV companies in the first quarter. Sichuan Changhong's net profit attributable to the parent company was 32.98 million yuan, down 84.7% year-on-year; Hisense Electric's net profit attributable to shareholders of listed companies was 269 million yuan, down 49.53% year-on-year; however, TCL Group's net profit was 447.8199 million yuan, up 71.86% year-on-year; Shenzhen Konka A's net profit was 26.2454 million yuan, up 211.35% year-on-year.

Affected by the high growth and high inventory in the fourth quarter of last year, high machine costs, and sluggish market demand, although there are some interesting differentiations between different brands, the overall trend is still downward.

How can we leverage the existing market of color TV, which is extremely slow to update? The means of Internet TV brands is to create various "gimmicks" and transfer the major issue of hardware manufacturing to content and software. However, looking back at history, it is not difficult to find that no hardware manufacturing company has made a fortune by relying on software.

Even Apple, which claims to have the best ecosystem and the most profitable APPStore, still has the highest share of profits from hardware.

How does Internet TV face such market rules? How effective is the struggle? Since the second half of last year, the cost of small and medium-sized panels around 40 inches has risen by up to 100%, and the cost of large-sized panels around 60 inches has also risen by up to 30%. The overall average cost of each size segment has risen by 40%.

What kind of disaster is this for Internet TVs that are fighting for low prices? The total amount of revenue that Internet TVs claim to be able to realize through content operation, VIP fees, advertising placement, etc. may not be as much as the price increase of the panel. It is conceivable that with limited market share, talking about the business model of content operation is just a foolish dream.

When the original price of Internet TV is forced to rise from 999 yuan to 2099 yuan, and when the charging of Internet TV content has evolved into a situation where even if you pay, you still have to watch ads when it turns on and off, what is its appeal?

Does its appeal come solely from so-called artificial intelligence, so-called VR, so-called elimination of remote controls? So-called gaming, karaoke, online shopping? Are these really pain points that televisions can solve well? A TV that even freezes when playing 60fps, 4K, HEVC, and 10-bit videos, a TV that can't even decode MKV with its own player, tells consumers that it can be used for shopping? This is simply putting the cart before the horse.

Perhaps the biggest attraction is that after telling these stories, the stock market will rise by the daily limit. However, after such a bubble, the stock market plummeted and the leader was forced to pledge shares many times.

In the past 20 years, local traditional color TV manufacturers have driven away Japanese and Korean companies through price wars and marketing wars. After so many hardships, they have already developed a set of armor. Today's marketing gimmicks of Internet manufacturers are just a small fragment written in the evolutionary genes of traditional color TV manufacturers.

As the capital market returns to rationality, the bubble of "burning money" has gradually burst in 2017. Internet TV, which is hailed as the next outlet, still has a tortuous road to go.

On the other hand, the value of Internet TV's large screen in the battlefield of time has also become precarious. Our time is extremely fragmented. If we want to capture users' time on smart TV, we are competing with mobile devices, PCs, cinemas, KTVs, and game consoles for users' time. These means, which are praised by Internet TV as new business models, actually have better alternatives and better ways of experience. Please don't do Uniqlo's business while thinking of Dior.

Last year, there were major sporting events such as the European Cup, America's Cup and the Olympic Games to stimulate the sales of color TVs. Internet TV manufacturers also took advantage of the opportunity to buy a large number of copyrights for live and on-demand broadcasts of sports events.

Last year's real estate market also hit new highs in both real estate transaction area and transaction amount since 2013. The booming real estate industry has also driven the rapid growth of the entire home appliance industry.

However, in 2017, all these favorable environments no longer exist. The bubble created by Internet TV will soon be exposed, and the color TV industry will undergo a new round of reshuffle. The new growth space of the industry still needs more sharp stimulation and deeper exploration.

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.