Fengxing intends to expand its super-dimensional ecosystem; investment alliances in the color TV industry have become a trend

"12 million units shipped in 3 years". Among them, the sales target of 1 million 4K Internet TVs will be achieved before the Spring Festival in 2016, and then 4 million units will be shipped in 2016.

Just after launching its own brand of television in early December, Fengxing issued itself a military order.

In 2015, the entire color TV market entered a period of adjustment. Declining sales, corporate losses and the pain of transformation were like sharp swords stabbing at TV terminal manufacturers. The continuous disruption of Internet TV manufacturers made the competition in the color TV industry enter a red ocean. Against the macro background, Xinbing Fengxing’s call for a sales target of 12 million units in three years. Is it just bragging or hype, or does it really have a trump card?

What is the concept of super-dimensional ecology?

The word "ecosystem" has been overused in the mobile phone and TV industries. All major manufacturers hope to use their own strength to build a mature and complete industrial chain to drive product sales and expand brand influence. Similarly, Fengxing also proposed an ecological concept this time, but the difference is that Fengxing wants to create a "super-dimensional ecosystem".

In the "super-dimensional ecosystem", the five giants, Oriental Pearl, Fengxing, Shenzhen MTC, Haier and Gome, are not simply cooperating in business in the traditional sense, but are engaging in in-depth cooperation through mutual capital investment.

In August this year, Oriental Pearl subscribed to the non-public offering of shares of Shenzhen MTC for RMB 2.2 billion, accounting for 9.55% of the total number of shares after the issuance. Haier and Gome subscribed RMB 370 million each, which will be fully invested in the Internet TV business after deducting the issuance costs. In September, Shenzhen MTC acquired 63% of the equity of Fengxing Online from Oriental Pearl for RMB 967 million. The "dual shareholding" makes the relationship between the manufacturers in the "super-dimensional ecosystem" closer. Oriental Pearl, Shenzhen MTC and Fengxing Network are responsible for the content, manufacturing and operation of Fengxing TV respectively. Haier and Gome have taken on part of the task of channel sales.

According to Zhou Can, vice chairman of Fengxing, the "super-dimensional ecosystem" is an open cooperative relationship, and companies such as Panda will join in the future. Fengxing plays a platform role in it. In the future, any Internet TV equipped with the Fengxing platform can be regarded as Fengxing TV, such as Haier Fengxing TV, Panda Fengxing TV, etc. On this basis, Fengxing's goal of selling 12 million units in three years is completely achievable.

Recently, the rumor of cooperation between LeEco and TCL was finally confirmed: LeEco Zhixin, a subsidiary of LeEco, will purchase 348.85 million shares of TCL Multimedia at a price of HK$6.5 per share and a total price of HK$2.268 billion. After the transaction is completed, LeEco will become the second largest shareholder of TCL Multimedia with a 20% shareholding ratio and will have two director seats on its Hong Kong board of directors.

Zhou Can believes that in the future, cooperation through shareholding will become the norm in the color TV industry, which means that cooperation between Internet manufacturers and traditional terminal manufacturers will become closer, strengthening the integration capabilities of the entire industry chain, bringing huge product advantages and cost advantages, while also creating a multi-dimensional profit-making method, allowing each party to showcase its strengths and jointly promote the improvement of the Internet TV industry chain.

At present, the focus of competition for both video websites and Internet TV is mainly on content. Whoever has more exclusive content resources will have more say.

In terms of content, Fengxing TV has fully connected with Oriental Pearl's content library. In the film sector, Oriental Pearl has reached strategic cooperation with well-known domestic and foreign production companies represented by the six major Hollywood companies, and the coverage rate of domestic theater movies is as high as 90%. Among them, the top 100 box office films in film history account for 90%, and the top 100 annual box office films introduced in 2016. In the children's animation sector, five world-class brands such as Disney and Nickelodeon have been introduced. In the sports sector, it has the copyright of all Premier League matches, and there are nearly 3,000 high-end sports events such as rugby, free fighting, tennis, racing, CBA, etc. every year. The documentary sector brings together the copyright of domestic first-class documentaries represented by SMG and Continental Bridge, and introduces six world-famous documentary brands such as BBC and History Channel.

It is reported that Oriental Pearl has an annual copyright investment of 1.5 billion yuan, making it the largest OTT content copyright library on TV. Fengxing is backed by SMG Media Group from the perspective of content. "Oriental Pearl is willing to cooperate with other manufacturers, but when Oriental Pearl feels that this cooperation has risen to the strategic level and capital exchange, Zhaochi is the first choice." Zhou Can explained the exclusivity of Oriental Pearl in content cooperation.

In 2015, the influx of new Internet TV brands intensified the competition in the color TV industry. The emergence of new brands such as Fengxing TV, Weijing TV, and PPTV has increased the number of domestic Internet TV brands to more than ten. The operation of capital has also brought the industry to a new round of reshuffle. Judging from the case of Fengxing TV's "investment alliance", in the future, the integration of development will become a major trend in the Internet TV industry.

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.