Why online video can’t defeat cable TV in the end?

January 27 (Reporter Zhang Zhichang) Whether in the domestic market controlled by the State Administration of Radio, Film and Television, or in the overseas market dominated by the market economy, the continuous development and growth of online video broadcasting platforms are gradually pressing on the inherent status and user proportion of traditional cable television.

Especially after the rise of online platforms such as CNTV and Mango TV under the Radio and Television Department, and the recent launch of the online broadcast channel by HBO in the United States, which has affected cable TV users, the question of whether online video will eventually defeat traditional cable TV has been raised again. However, after these typical industry changes, we can still determine that online video will not completely defeat the market foundation of cable TV in the future.

The overall situation of the video website industry is still uncertain

In the past two years, the video website industry has been turbulent and unpredictable. The continuous introduction of radio and television regulatory policies, the rising prices of resource content copyrights, and the penetration of the three major Internet giants BAT into this industry have all caused the video website industry to experience the greatest industry change in history.

In particular, the major video websites that are constantly "burning money" from corporate equity, investment to mergers and acquisitions, and integration have all moved closer to the Internet giants in order to seek more financial support and a strong "backer" to establish an invincible position in the industry.

Under this trend, Tudou.com, the most glorious website in the UGC era, was easily taken over by Youku, while Sohu Video picked up the "big bargain" of 56.com; LeTV became the only profitable video website, and iQiyi began to change owners...

Regarding the future of the video website industry, iQiyi CEO Gong Yu said, "It is difficult for the video website industry to form an oligopoly at present. In the next three to five years, there may be only two or three companies in the video industry competing for the 40 billion market, and they will form differentiation in original content and platforms in the continuous competition."

2014, which Zhang Chaoyang called the first year of self-production of video websites, has passed, but the efforts of various companies in self-production of content may continue in 2015. The continuous investment and efforts in self-production of content are precisely because major video websites have realized the importance of content resources and differentiation to a video company; just like any other industry field, "the strong will become stronger" may become the main competitive direction of video websites in the next two years.

Therefore, the focus of video website companies in recent years may still be competition within the industry, and they will not have the spare energy to compete with the traditional television industry.

Cable TV is still indispensable

Although online videos have been almost perfectly presented on large-screen TVs through smart devices such as OTT, which not only further blurs the experience differences between online videos on PCs, mobile devices and TVs, but also begins to gradually defeat traditional cable TV with a stronger user experience, online videos still cannot cross the last hurdle of cable TV.

As the famous investor Mark Cuban said in support of traditional TV, "Although consumers can watch the TV shows they want at any time through Netflix, these shows are popular because they first appeared on cable TV. We may evolve to the point in the future where people can watch the shows they want anytime, anywhere, but these shows will always need front-end media to be displayed."

Whether it is HBO, which has reduced the number of cable TV users through its online broadcast channel services, or Mango TV, which has rapidly risen through the high-quality content resources of Hunan Satellite TV, it can be seen that online video’s dependence on traditional TV content will still be difficult to get rid of in a short period of time.

Although online video is gradually developing from a disorderly and unruly state to a formalized and verticalized development, the control of traditional cable TV over TV terminals is still the top priority. If online video wants to be better presented and developed on large-screen TVs, it is also an important condition for its long-term development to handle the complementary relationship with traditional TV.

Of course, as online videos also begin to move towards content production, how traditional television can consolidate its exclusive position in the minds of users is also a question worthy of deep thought.

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.