It is difficult to make money from TV hardware, and the profit model has changed into a trend

Users are at hand, but it is not easy to monetize user resources. Just like the taxi-hailing app that was popular some time ago, it spent money to attract users, but once the subsidies were reduced or even cancelled, the number of users would drop sharply.

Television sets are becoming increasingly cheaper.

Think about the TV I bought myself a few years ago, a 42-inch, most common LCD TV of a domestic brand. The final transaction price was 5,999 yuan. I got it at a discounted price when a chain home appliance store was reopening. I got up early, waited in a long line, and fought my way through a bunch of housewives and uncles to get it.

Later, when I started to work in the home appliance industry, I found that the size of TV sets was getting bigger, the appearance was getting better, and the display effect was getting better (compared with my own TV, it was simply terrible), but the price was getting cheaper. Last week, a domestic brand launched a new spring product, a 49-inch smart TV priced at less than 3,000 yuan, and the manufacturer said this was the lowest price among products of the same quality.

Although the color TV industry has always been highly competitive, and the price wars during the major promotion seasons every year are particularly fierce, this wave of smart TV price drops has been more obvious since the second half of last year. LeTV, Xiaomi and other Internet companies are competing for the right to speak in the living room and entering the field of smart TVs. In addition to shocking traditional color TV manufacturers in terms of concepts and models, the most direct impact is the price. The 47-inch Xiaomi TV is sold for 2999, the 50-inch LeTV TV is 2999, and the 60-inch is 4999... These prices, which are far lower than the same-sized products on the market, can indeed "confuse" consumers who are very sensitive to prices, making them ignore the possible differences in product quality and ignore that this price is only for the TV itself, accessories, content, etc.

Traditional color TV manufacturers dragged into the battle have announced transformation, changed their product ideas, joined hands with Internet companies, and innovated in channels. Domestic brands have launched lower-priced sub-brands. Although foreign brands have maintained their usual "arrogant" attitude, saying that they are not among our competitors, they still can't help but lower their profile and begin to increase the launch of mid- and low-end products in the Chinese market. But it is undeniable that it is becoming increasingly difficult to make money from TVs.

The financial reports of Internet companies always make people jealous. How can money be made so easily and the profit margins be so high? When home appliance manufacturers look at themselves, they are almost in tears, and color TV manufacturers are the ones who beat their chests and cry bitterly. Seeing others making a lot of money is inevitable to be jealous, and they wonder if they can learn from others' models and make some changes. From the color TV companies that have announced their transformation strategies, they have all set their sights on things other than hardware.

Every color TV company has a large user base, and they want to mobilize these users. At the end of February, TCL announced its "Double + Strategy", which mentioned the need to build a "smart + Internet, product + service" model. According to Chairman Li Dongsheng , in the next five years, TCL will change from operating products to operating users, and the profit contribution from products and services should account for 50% each. Hisense announced that its smart TV activated users have reached 4.5 million, with an activity rate of over 60%, and the number of active users is expected to increase to 8 million by the end of this year. Konka also set a goal to reach 10 million active smart TV users in the next two years, an increase of 5 million per year.

Users are in hand, but it is not easy to monetize user resources. We must know that our consumers have long accepted "free lunches" and would rather give up if they have to pay for them. Just like the taxi-hailing apps that were popular some time ago, they spent money to attract users, but once the subsidies were reduced or even cancelled, the number of users would drop sharply. For example, my parents, although they have changed to smart TVs, they still only watch programs with TV signals and free online video content. Therefore, for color TV manufacturers, model change is a trend, but it is still far away to make money from services and applications. At present, it is more practical to find ways to make money from the TV itself.

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.