Who can laugh at the end when the TV operating rate continues to decline?


The decline in the TV operating rate has been an industry consensus. As early as in 2011, there was talk of "the operating rate is below 30%," while the other side of the smart TV industry was not affected by this. They have launched smart TVs to use Internet video games. And so on. TV companies also released their own operating rate data, of which the operating rate of Hisense was 52% on the day, 15 million users of millet TVs and boxes, the daily operating rate was 68%, and the operating rate of LeTV was 65% on a daily basis.

In the era of smart TV, the operating rate is related to the entire industry's ecological life and death. Not only the hardware manufacturers, but also the content producers and application systems behind them must survive at the operating rate. Then the question arises. Can today's smart TVs really maintain a high operating rate?

How to really increase the operating rate

In the era of smart TV, hardware manufacturers regard hardware as a distribution platform for their content ecology, and integrate products such as games, videos, and mobile applications into the ecosystem, and use Internet integrated services to improve the status of television in the family. Among them, LeTV is not only mastering high-quality video resources, but also grouping LeTV Sports to win over OTT copyrights of famous events such as Premier League, which has obvious advantages in terms of content ecological construction, while traditional TV manufacturers such as Hisense, Skyworth, etc. do not have much in their hands. Film and television resources can only realize the ecological prosperity of the surface through the application embedded in other video applications. In addition, many box manufacturers have also obtained “box ecology” through cooperation with film and television resource parties. Axe F1", its video resources is cooperation with LeTV.

It is not difficult to find that in this round of smart TV contests, the traditional hardware manufacturers and content-free "box manufacturers" are obviously at a disadvantage. Without exclusive content advantages, it is still difficult to fundamentally rely on hardware to subsidize film membership fees. On user support.

LeSuit, which has considerable content resources in its hands, directly subsidizes hardware through content and ecological profits. On the one hand, it improves the cost-effectiveness and market competitiveness of television hardware, while on the other hand, it uses exclusive or massive content to enhance the user’s product dependency, and thus Improve the TV operating rate.

For today's TV manufacturers, the operating rate is extremely sensitive data. At the beginning of this year, Hisense dismissed the remark that "the operating rate is less than 30%." Millet used the box and TV to calculate the operating rate in exchange for a 68% boom. TV manufacturers apparently do not want the operating rate to affect their future, but not everyone can welcome tomorrow in this round of the boot rate war.

Who can usher in the future of smart TV?

According to Tiege’s view, the current majority still rely on hardware to make money, and the operating rate forcibly pulled up through third-party cooperation is difficult to move toward tomorrow. The lack of effective content ecology has become a major obstacle for smart TV manufacturers to move forward in the future.

Companies that can truly move into the future must meet the following three conditions:

First, ecological sustainable development

As mentioned above, a considerable part, especially traditional TV manufacturers, due to their lack of ideal software ecology and excessive commitment of content to third parties, it still remains in the stage of hardware profitability, and the old business model is obviously difficult to reach. .

On the 16th of LeTV’s "Soft Power Big Screen Impact" summit, LeTV announced that LeTV SuperTV and Dentsu Anjis Group had reached over 100,000 yuan in OTT advertising strategic framework cooperation. Content-based profitability of smart TVs is constantly magnified, resulting in the creation of “view-and-buy” advertisements such as boot advertisements, patch advertisements, and integration with LeEco's e-commerce business. Advertising display and diversification of results have enabled LeTV to profit from its software ecosystem. Space, then the software will further subsidize the hardware, increase the market share of the hardware, and then increase profitability, so as to achieve a positive cycle.

Behind the emergence of a new industry must be the innovation of the business model. The future of smart TV must not only be the change of hardware, but the sustainability of the business model. As such, hardware-driven businesses are really dangerous.

Second, the same stickiness of content and hardware

With the continuous development of smart TVs, for manufacturers, the iteration of hardware will increase the risk of user loss. This is also the main reason why TV manufacturers like the mobile phone manufacturers to increase the frequency of new releases, that is, to offset the hardware by the new new user growth. Updated user churn. In addition, when smart TVs become the main entrance for mobile Internet, users’ demand for smart TV ecosystems will increase, and a considerable part will be eliminated due to weaker ecological adhesion.

For the hardware, LeTV launched the “Caring for the old user” event, providing motherboard replacement services for 570,000 first-generation super TV (S40/S50) users. Users only need to purchase a value of 490 yuan at Leshi Mall. The super movie and TV members can replace the motherboard for free. The software ecology feedback hardware has become the norm.

In terms of ecology, in November 2015, Super TV launched the LeEco children's desktop; the game desktop was launched in December 2015; the shopping desktop was launched in January 2016; and the synchronized cinema desktop and happy desktop were launched in March 2016; 4 Launched sports desktop. That is, desktop topics are used to meet the ecological needs of different users. That is, the desktop is the entrance, where traditional apps lose their entrance value.

According to Tiege’s view, the smart TV landscape is still full of many variables in the future, and quite a few manufacturers are unable to reach the future with their original distribution channels, given the disadvantages of lack of hardware and software advantages. Who is the reaper of the industry, let's wait and see.

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