OTT boxes are in a period of pain and may develop into overseas markets

Internet set-top boxes have received extra "care" in the past two weeks.

In just two weeks, the State Administration of Radio, Film and Television issued a series of regulations, requiring the closure of download channels for illegal video software in Internet TV terminal products, and the cancellation of the time-shift and playback functions of TV programs in some OTT integrated broadcast control platforms. At the same time, all imported dramas, micro-films and other content were taken offline, and all content was connected to the integrated broadcast control platform.

After the release of the "strictest ever" regulatory measures, the entire industry is in a period of pain and silence, and many box manufacturers are cooperating to rectify and remove video content. However, in the view of licensees who can provide regular content, this move can break the inertia of free content in the past, and it is expected to cultivate consumers' payment habits next year and promote the good commercial development of the entire industry.

Removal of non-compliant content

The most important point in the rectification requirements put forward by the State Administration of Radio, Film and Television for Internet set-top boxes is that all content should be included in the management of the integrated broadcast control platform, and all content on the platform should be managed by the license holder, and at the same time, TV series, micro-films and other content should be removed from the shelves. However, many consumers are worried that the set-top boxes they purchased have no content to watch, especially some boxes that use Internet content as a selling point. How should the subsequent services be handled?

The reporter learned from iQiyi and LeTV that, at the request of the State Administration of Radio, Film and Television, they are cooperating with the licensee to rectify and clean up some of the content in the boxes, but the impact on consumers and subsequent services will have to wait until the specific plan is released. However, a video content service provider told the reporter that this rectification will not have much impact on users: "The main programs watched by set-top box users are still mainly variety shows and TV series. The user base for foreign dramas and micro-films mentioned in the regulations is not large, and even if they are removed from the shelves, it will not have much impact."

"This rectification is aimed at illegal competition among the seven licensees, and redirects the content that users watch to the broadcast control platform." Wang Haitian, a senior observer of radio and television, believes that the content provided by set-top boxes is currently mixed, and this rectification will just standardize the entire platform. However, the specific approach can be further extended: "The management rules should be set based on people rather than screens. For example, a good film and television program rating system should be established, and the content on mainstream online video websites and television should be regulated according to the same rules, so as to truly protect the people who need protection."

Box manufacturers shift positions

"Although video content is a basic need of users, this path has been completely blocked." The head of the marketing department of a well-known domestic hardware box manufacturer told reporters that in response to the request of the State Administration of Radio, Film and Television, they have cooperated with the licensee, China Radio and Television, to cancel the playback function of built-in programs and have removed some Internet videos required by the regulations.

On the surface, the several regulatory policies issued by the Radio and Television Administration seem to have made strict regulations on content platforms and box manufacturers . For example, the supervision of software clients such as Sohu Video and iQiyi is still in a loose state. However, the person in charge told reporters that supervision and restrictions will become more and more stringent. The content that users can see on regular boxes can only be provided by the licensee or reviewed by it. Box manufacturers cannot bypass the licensee and directly connect with video websites and other content providers. In the future, the content that can be provided to users will be further reduced.

"In the past, box manufacturers could directly cooperate with websites such as LeTV and Youku to access content, but now they can only access content provided by the licensee. Even if there is a demand in this regard, it can only be introduced through the licensee as a platform to negotiate cooperation with the content. In the future, channels will truly be king." The person in charge told reporters that many box manufacturers no longer emphasize their video content advantages, but instead cooperate with manufacturers that provide games and educational content to create selling points through such value-added services, or choose to transform and place their main positions in the overseas Chinese market.

Pay-per-view may be available next year

According to the SARFT Document No. 181, all content on OTT set-top boxes must be managed by the integrated broadcast control platform, and all content on the platform is the responsibility of the licensee. This means that both hardware box manufacturers and content providers can only go through the licensee's unified broadcast control platform, which is good news for the seven major broadcast control platforms.

"It is currently a painful period, but in the long run, users' payment habits will gradually mature, and will also prompt the entire industry chain to develop in a positive direction." As one of the licensees providing the broadcast control platform, He Weizhao, general manager of the product operations department of Wasu Group's Game Base, is optimistic about this.

He told reporters that the OTT set-top box market was relatively chaotic in the past, with various aggregation and pirated software emerging one after another, causing users to get used to free content. However, this made it impossible for content providers and platform providers in the industry chain to achieve a long-term profitable commercial model. However, after this rectification, the entire platform will be re-standardized, and consumers will gradually develop the habit of paying for content. Both licensees and content providers will be able to seek a good profit status. But in fact, the unified standardization of broadcast platforms does not mean less content for consumers. Licensees represented by Wasu Group, while seeking a sustainable profit model, are also actively cooperating with other broadcast control platforms and external content providers to continuously introduce genuine film and television content.

He Weizhao told reporters that Wasu has already cooperated with Internet video websites such as PPTV and Youku, and will not rule out the possibility of accessing a large number of external video resources in the future. At the same time, the platform is also gradually trying to cultivate the payment habits of some users. After a trial period of about one or two years, it is expected that by next year, users will gradually form the habit of paying for content.

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.