5 major changes of copycat boxes after OTT rectification

After the Internet video industry was rectified by the State Administration of Radio, Film and Television, the copycat boxes that accounted for about 70% of the total OTT market suffered a huge impact, and various uneasy feelings also flooded the copycat set-top box market.

What impact will the OTT video industry rectification have on copycat boxes? Through understanding several first-tier copycat box manufacturers in Shenzhen, the impact of this rectification on copycat boxes is mainly manifested in the following five aspects:

1. The money paid for the license was wasted

The prosperity of OTT TV set-top boxes is closely related to the live TV, on-demand, and various video applications built into their systems.

Huang Xu, a veteran in the satellite TV industry, said that since the threshold for OTT set-top boxes is very low, manufacturers or agents who originally made satellite receivers have all entered the field of Internet TV. After accumulating a certain scale of users, some counterfeit set-top box manufacturers are no longer satisfied with simple piracy.

Obtaining an Internet integrated broadcast control license from the radio and television is undoubtedly a shortcut to whitewashing copycat boxes.

Through the sale of license authorization, the licenses of Mango TV, Wasu, Southern Media (through Youpengpule), and iCNTV Future TV have continuously entered the platform of copycat set-top boxes. The license authorization fee of some broadcast control platforms is even less than 10 yuan per unit.

During the rectification of the integrated broadcast control platform, a large amount of video content was taken offline, and the aggregation applications and third-party apps in the set-top box system were also required to be uninstalled. Since the license holders only issued administrative orders to their partners without compensation, these counterfeit set-top box manufacturers suffered losses.

2. Offline channels have collapsed

The State Administration of Radio, Film and Television's rectification of the integrated broadcast and control platform of Internet TV is impacting these counterfeit boxes that hope to be whitewashed. It is said that the offline channels of these boxes have almost suffered a devastating disaster.

Recently, the daily sales volume of OTT set-top boxes in offline channels is only 1/10 of that before the rectification. Wang Bin (pseudonym), a set-top box manufacturer, even told Sohu IT that the daily shipment volume of his products in offline channels has dropped to only more than 100 units nationwide. Before the rectification, the monthly shipment volume of his products could reach about 40,000 to 50,000 units.

In addition to the sluggish sales, these boxes have also encountered a wave of returns and complaints. Many boxes that are still within the refund range have been directly returned by users.

3. Online channels are trembling

Compared with the offline sales channels, which are in dire straits, the impact on the online channels of OTT set-top boxes is not as serious as imagined.

It is understood that when the rectification began, online sales of OTT set-top boxes dropped by about half. After a period of buffering, sales are now beginning to show signs of recovery.

However, box manufacturers are not optimistic about online sales. The most important reason is that there is a regulation in Document No. 181 of the State Administration of Radio, Film and Television that restricts the illegal sales of Internet TV set-top boxes.

Judging from the recent sales of OTT set-top boxes on JD.com, Taobao and other channels, the online sales of OTT set-top boxes have not been affected by the OTT rectification. However, as the policy tightens, the uncertainty brought about by the manufacturers' illegal behaviors has filled Wang Bin and other manufacturers with anxiety.

4. The own platform is tied up

After the State Administration of Radio, Film and Television required the integrated broadcast control platform to be rectified last week, various licensees issued rectification orders to their partners in accordance with the rectification requirements.

Based on the principle of "whoever authorizes is responsible", the license holders also require the authorized counterfeit box manufacturers to file their systems, upgrades, and content. Box manufacturers will have to report any interface changes, firmware upgrades, software upgrades, and content changes to OTT set-top boxes in the future.

OTT solution provider Li Meng described the current rectification of OTT TV as "returning to the pre-liberation era overnight." It is said that the license holder once said that it would lock the relevant application ports according to the superior policy, which would make it impossible for OTT set-top boxes to install applications on their own. After users get the boxes, they can only use the regular services provided by the integrated broadcast control platform.

5. Shanzhai needs to find another way out

From the current situation, the pirated box manufacturers have basically not been affected. Wang Bin said that if the long-term policy restrictions lead to losses for enterprises, they can only choose to return to the old path of piracy.

Solution provider Li Meng believes that there is no clear direction in the OTT field for the time being, and his technical team is also considering transformation. With wearable devices almost being ruined, testing the waters of smart home may be a better choice.

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.