Video apps are leaving the online video market, and the living room is facing obstacles

Due to the intelligence of the operating system, smart TVs can access more audio and video content through the Internet than cable TV, but a series of policy prohibitions require video websites not to seek TV output channels without authorization. Recently, mainstream video TV version apps have been removed from the shelves one after another, and it seems that the only way to compete for the living room market is to "commit to a licensed broadcast control platform."

Delisting

The news of the removal of the TV version of the video app is the main theme of the current living room market. Tencent Video was one of the earliest video websites to take action. As early as August 22, it issued an official notice to many third-party app stores, urgently stopping the Tencent Video TV version that was being played on related websites; on August 29, PPTV and Youku Tudou also issued relevant notices; on September 1, iQiyi, Baofeng Video, Sohu Video, and LeTV also stated that they would remove the app from the shelves; on September 2, Phoenix Video announced its removal.

As of now, almost all mainstream video websites including Tencent Video, iQiyi, PPTV, Baofeng Video, LeTV, and Phoenix Video have issued announcements or notifications, requiring the removal of related applications.

Beijing Business Daily reporters also found that TV version application markets such as Aijia Market and 360 TV Assistant have completely cleared out live video and audio-on-demand applications.

Even for video TV apps that users have already downloaded, some websites have urged users to uninstall them through homepage reminders, etc. Some netizens even reported that some video websites have now stopped many online playback services.

Not only mainstream video websites, but also unknown aggregation video TV version apps like VST Quanjuhe have encountered policy shocks. Since the audio and video content of these small applications all come from mainstream websites, once the mainstream websites limit the flow for policy reasons, these apps find it difficult to successfully capture content and "decoding exceptions" often occur.

According to the requirements of the State Administration of Press, Publication, Radio, Film and Television (hereinafter referred to as "SARFT"), the content broadcast on the Internet box must be provided by the content service license owner, and must be reviewed and managed by the seven integrated business license owners, namely CCTV International, BesTV, Hangzhou Wasu, Southern Media, Hunan TV, China Radio International, and China National Radio, before it can be broadcast.

As video websites actively request app stores to remove apps, Internet TV content integration broadcasting licensees are also cleaning up non-compliant apps in accordance with policy requirements. BesTV said that all devices under its license, including TV manufacturers such as Changhong, TCL, and Konka, as well as box manufacturers such as Meiruhua and Himedia, and Internet projectors, will completely remove all apps that can connect to the Internet.

Wasu Media also stated that the company has cleaned up all non-compliant video website apps and other third-party TV applications that can connect to the Internet in accordance with the policy requirements of the General Administration.

Seeking support

It is not difficult to see that there is only one way for video websites to find their way to smart TVs - by relying on broadcast control platforms. Just recently, the iQiyi TV version App was transformed into "Galaxy iQiyi" and re-launched.

The iQiyi TV video client has been closed in accordance with policy requirements, and the Galaxy (iQiyi) video client is a brand-new TV video client software that is connected to the central Galaxy Internet TV integrated broadcast control platform and integrates content from many companies that have obtained content service licenses, such as China National Radio TV, Jiangsu Radio and Television, and Movie.net.

It is understood that Galaxy Company is the subsidiary of China National Radio, the Internet TV content licensee, responsible for operating this business. It has now integrated the strength of iQiyi's product, operation, technology, marketing and sales teams. After the integration, the two parties will face manufacturers with a consistent "Galaxy" image, and the client brand will also be unified as "Galaxy Film and Television" after the transition period.

Coincidentally, LeTV also signed a strategic cooperation agreement with Chongqing Radio and Television Group and Chongqing Cable Television Network Co., Ltd. in July when the policy was tightened. The cooperation included strategic equity investment and establishment of joint venture subsidiaries. What attracted particular attention was that LeTV hoped to use this opportunity to promote Chongqing to apply for Internet TV-related licenses and grant them to the joint venture company of both parties.

Another company that has taken a similar action is Youku Tudou, the industry leader. The company has invested RMB 50 million in China Media Group Guangdong, the license holder of the Internet TV broadcast control platform, and holds a 16.67% stake in China Media Group Guangdong. In the future, the two parties will jointly develop Internet TV-related businesses.

China Radio and Television Guangdong is responsible for all new media businesses of China International Radio and Television Network's network-based TV and PC terminals, the construction and operation of the corresponding integrated broadcast control platform, mobile business, etc. Its core business is the construction and operation of the Internet TV platform.

Tencent, Xiaomi and other companies have already reached strategic cooperation with CNTV (China Network Television)'s Future TV. Analysts believe that the loss of the right to speak for video websites may stimulate companies and licensees to explore new cooperation models, such as capital cooperation or exclusive content access.

Difficulty in making money

Fewer channels means it is harder to make money. Wen Xinyu, deputy general manager of CCID Consulting Internet Industry Research Center, told the media that the radio and television department wants to control the content source by providing a platform, not to completely ban third-party video websites from providing content.

Luo Lan, an analyst at Analysys International, told the Beijing Business Daily that "it must be caused by the regulation of Internet TV content by the State Administration of Radio, Film and Television." She further explained, "In fact, relevant national departments have already regulated TV content portals before, but the implementation was not very strict. Since June this year, the regulation in this regard has begun to tighten, and all video websites must explore business models under the supervision of the State Administration of Radio, Film and Television."

"Judging from this removal incident, the losses of video websites are obvious, and it is a chain reaction," Roland believes that due to the indirect loss of some content discourse power, the brand effect of video websites will inevitably shrink, which will directly affect their advertising revenue. In the long run, the entire industry's control over the entrance to the TV market will be affected.

As the saying goes, there are policies and countermeasures, but in fact, there is still a gray area for video websites. Although mainstream TV app stores have removed the TV version of video website apps, users can still download the apps from a few niche app stores, and even copy the installation package through traditional methods such as USB flash drives.

Although the experience is not good, users who have downloaded the TV version of the video app before it was removed from the app store can still continue to use the app to watch the content of the website on TV. And the path of Galaxy iQiyi also means that video websites can be put back on the shelves by borrowing licenses, changing their names, etc.

Roland does not support the above countermeasures of video websites. She believes that "in the short term, video websites may be able to use the above methods to evade supervision, but this is unsustainable. If video websites go against the State Administration of Radio, Film and Television in this way for a long time, it is very likely to cause the disgust of the State Administration of Radio, Film and Television, and further increase supervision efforts."

However, after the capital cooperation is reached, no one has given an answer on how the video websites and the license holders can cooperate to avoid risks. In this regard, Roland believes that "from the current situation, the video websites will be in a relatively passive situation for a long time, and the license holders have always maintained an open attitude towards the access of content providers, holding the mentality of more the better. The exploration of business models by both parties may not have a major breakthrough in the near future."

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.