Hisense TV's crazy expansion of content pool may lead to crisis

Hisense TV's crazy expansion of content pool may lead to crisis

On March 18, Hisense signed contracts with 11 video websites including Future TV, iQiyi PPS, Phoenix Video, Ku6, LeTV, LeKan, PPTV, Sohu Video, Tencent Video, Youku Tudou, and Youpeng to share Internet video content through Hisense TV. Analysts pointed out that Hisense seemed to have easily obtained a "content pool" with massive resources, but in fact, this move made it passive.


Content is king forever
From functional TV to Internet TV, TV has always been used to watch programs. "Content is king" is an unshakable truth. Internet TV gives viewers the right to choose the content of the TV. At the same time, compared with PC and mobile terminals, it has a more comfortable large-screen experience, which makes content resources more important in the Internet TV era. Data shows that the richness of smart TV content and smooth playback will become the research and development focus of various color TV companies in the future. The quality of content and applications is directly related to the success or failure of color TV companies in competition.
In the field of smart TVs, traditional enterprises have always been criticized by the market for their content. "Since Internet enterprises entered the living room market in 2013, what they have been promoting the most is their content advantages, which is exactly the disadvantage of traditional enterprises," said Liu Buchen, a senior observer of the home appliance industry.
According to the survey data jointly released by AC Nielsen and Changhong, the average monthly TV usage time dropped sharply from 94 hours to 39 hours from 2009 to 2013, while the time consumers spent watching videos throughout the year increased sharply from 169 hours to 532 hours. This shows that users' demand for video consumption has been great and has an upward trend, but the content on TV can no longer meet this demand.
Content is king has become an industry consensus. Traditional enterprises have also realized their own shortcomings and have sought cooperation with Internet companies such as video websites and platform service providers. It is understood that after Hisense has reached a strategic cooperation agreement with 11 video websites, it will provide users with comprehensive Internet video content. Each video website will also share Hisense's users by providing massive content services. At the same time, Hisense promises to "not be content-oriented, but only be a video portal."

In fact, Hisense's move is very similar to the "Daqi.com" that aggregated forum content in the past. Today, Daqi.com is rarely mentioned. The same is true for Hisense. The best result of aggregating content on TV screens is to become another entrance to video websites, nothing more.

As the smart TV industry chain matures, user experience continues to improve, and the number of users is also rising. Data shows that in the fourth quarter of 2013, the penetration rate of smart TVs has reached more than 50%. Relevant institutions predict that in 2014, smart TVs will account for half of the shipments of TV products. In addition, smart TVs make up for the disadvantage of TVs in terms of single content compared to video websites. Many PC users are shifting to TVs, which makes the days of video websites on PCs not so good.
Video websites urgently need Internet TV as a new entrance.
Product placement in TV dramas is becoming the most popular form of advertising. This year, Feng Xiaogang's Lunar New Year film "Personal Tailor" earned more than 80 million yuan from product placement. The TV series "Let's Get Married" that was popular on TV and the Internet not long ago had 49 product placements, and the list of thank-you companies at the end of the film was 4 pages long, with nearly 80 names. This kind of content marketing is also becoming the main form of placement for advertisers on video websites.
John Wanamaker once said, "I know that 50% of my advertising expenses are wasted, but the problem is that I don't know which half." Internet TV, based on a big data platform, can deliver advertisements precisely. This is a great temptation for video websites that mainly rely on advertising for profit.
In the Internet era, occupying the entrance means gaining the market. The competition among Baidu, Tencent, and 360 is for the search entrance traffic; the fierce competition between Tencent's WeChat, Alibaba's Laiwang, and NetEase's Yixin is for the entrance to the social platform; the competition between Alibaba's Alipay and Tencent's WeChat Pay is to seize the payment entrance. Similarly, video websites provide content resources for Hisense TV in order to occupy the current hot Internet TV entrance.
Cooperating with a video website is a win-win situation, while cooperating with 11 websites seems to be an aggregation and platform building. In fact, this is just wishful thinking. Hisense will soon find that the TVs it has sold with great effort have become channels for others. Moreover, in the future, the selection and display of film sources will surely make it difficult for Hisense to make a decision. After all, there are 11 partners, and it is indeed a problem whose content to give priority to.
Hisense’s big aggregation, big crisis in the 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.

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