As the annual "Double 11" big promotion approached and the smoke on the battlefield filled, it was difficult to see the Internet TV brands. The Internet brands that had high-profiled television circles in the past two years are no longer in sight and their market share has dropped significantly. Affected by the price hike of raw materials, many brands are falling into a situation where they can't afford to burn. In the past, Internet TV "new enthusiasm" was collectively getting over the winter, and some small brands with incompetent funds faced out at any time.
In the past, the "new money" was frustrated
In the past two years, all parties gathered in the Internet television field and became the "new darlings" in the television circle. However, the long-term outlook is not long. Some of these former “new entrants†experienced developmental twists and turns, while others were experiencing a “death.â€
Recently, the Internet TV brand “Looking at Shang†has been exposed to problems such as layoffs and arrears from suppliers. The reporter confirmed to the “seeing the truthâ€, and a staff member confirmed that the company is currently carrying out personnel optimization and structural adjustments, and explained the reason: “The panel costs have risen, and the industry has experienced cold weather, and the company has adjusted its business structureâ€. “Looking at the market†is expected to announce the adjustment results next month. There will be no new listings for the time being without restructuring. At the same time, “Looking at Shang†acknowledged that the payment of project items was postponed, but stated that they were all temporary extensions under the agreement of both partners.
As the industry's "head" brand, LeTV's setbacks are almost deadly. Since last year, affected by the music crisis, the industry expects LeTV to sell no more than 2 million units this year, only one-third of the 6 million units sold last year. At the beginning of this year, LeTV had promised to “guarantee 7 million and compete for 8 million units.†Now it seems that it is far from reachable.
LeTV in the crisis has also recently been "sell" rumors. “LeTV is cutting its wounds. It remains to be seen whether it will continue to survive.†said Cui Jilong, research vice president of Cloud Display Devices and Systems Division. LeTV has accumulated a large number of users in the past two years and actually has the opportunity to continue to expand operations. However, LeTV has repeatedly been drawn into various public opinion vortexes, leading to even more pessimistic outlook for the outside world.
Business model does not play a little
Le Shi, "seeing still" behind the two Internet TV brand experience is the silence of the industry as a whole.
Different from traditional TV brands, hardware and picture quality are different. At the beginning of Internet TV, a different track was chosen - through low-cost hardware, to obtain and operate users, and to make money from content. Since 2015, more than 10 emerging Internet TV brands have entered the market. Almost all brands follow this “no problem†business logic and rely on capital to snatch users.
The data shows that the market share of Internet TV in the middle of last year was as high as 20%, but the latest statistics show that the market share is only 12%. LeTV's crash fell, and the fall in the share price of Stormwind made Internet TV's business model more questionable.
Since the end of last year, TV panel prices have also continued to rise, and panels have accounted for more than 60% of the total cost of TVs. This has caused the cost pressure on Internet TV brands to increase suddenly. "A lot of Internet brands suddenly found it could not afford to burn." Cui Jilong said that traditional brand television has a relatively small impact due to panel prices because it has a complete industrial chain. Hong Shibin, an expert in the home appliance industry, also believes that television is indispensable to hardware after all. Traditional TV brands have turned to the Internet. The squeeze on Internet TV is obvious.
In addition, the scale of Internet TV users is much lower than expected, and it gradually loses the patience of the capital. “The television industry itself is not highly centralized and the competition is very fierce. So many Internet brands have come in and users are getting more difficult,†said Cui Jilong.
According to the data provided by him, for the current number of users, LeTV has the largest number of TV users, about 10 million, and ranks second in the millet TV market. It is expected that sales will be around 2 million units this year, and the cumulative number of users may be over 400. Million. Others, such as micro-whales, PPTV, and storms, generally have less than one million television sales, and the number of users is only several hundred thousand, which is obviously far from expected.
Who can survive the winter?
It is almost universally known that Internet TV is selling one unit. Feng Xin, CEO of Storm Group, revealed that each time he sold a Storm TV, he would lose between RMB 300 and RMB 400. Relying on content subsidy hardware, although it looks beautiful, it can not escape the reality of loss. Internet TV failed to attract continuous industry reforms, but it was itself in a crisis of survival.
The rising cost has led to more losses for every one sold now. If prices rise directly, Internet TVs lacking brand appeal will not sell out. According to Cui Jilong's analysis, in a dilemma, basically all brands have died down, and they will work hard first to see if there is a turning point next year.
People in the industry generally believe that some small brands on Internet TV can't support it. It's not surprising that it falls. Individual Internet brands have rarely seen new products, and there is almost no sense of presence.
In contrast, traditional TV, in the game with Internet TV, has launched its own sub-brands, such as Skyworth Cool open, Konka KKTV, Hisense VIDAA, TCL Thunderbird, etc., and the gap between Internet TV content has been very weak.
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