The TV industry business model has become more and more sophisticated

The TV industry has experienced accumulation and accumulation for nearly a hundred years. The product form and business model have undergone several changes and become more mature and perfect. The rise of the Internet has brought the business model of the TV industry to a new turning point.

“The net profit margin of hardware sales in the traditional TV industry has dropped to around 1.5 to 2%. In fact, the bottleneck of future profit growth has been highlighted, and it is necessary to find a new breakthrough, that is, the model of paying members.” Le Shizhixin President Liang Jun’s speech at the new product launch conference on May 16 once again pushed the “user operation” model to the forefront.

He believes that the current TV industry has changed its business model. The core is to shift from the past operating products to operating users, from one-off gains from operating products to operating users to obtain long-term service benefits.

In fact, as early as in the past few years, when the Internet TV army first emerged, the user management concept centered on content services began to spread in the industry. After several ups and downs, it was finally at this crucial moment of the collective sales of Internet TV. LeTV once again screamed and screamed, which revived the glory of Internet TV.

From another point of view, this is also a reality that the current TV market is getting harder and harder, and the days of TV companies are getting worse. Enterprises need to even look for new business models to build an ideal profitable land. Since 2014, China's annual color TV sales volume reached 45.09 million units, down 5.6% year-on-year. The difficult journey of the TV industry has officially started. It is necessary to know that this year is the first negative growth in 30 years. Although China's color TV retail sales exceeded 50 million units for the first time in 2016, it is still difficult to get rid of the fact that the TV industry's growth rate has slowed down.

The TV industry has changed from high growth to low-speed operation. In order to cater to the changes of the times and the cruelty of market competition, major TV manufacturers have to embark on the road of transformation, one of which is the transformation of business models - from operation Products, gradually began to transition to the direction of user operations.

Product management

From the popularity of CRT video TVs to the emergence of LCD TVs, and nowadays, new color TV products with various emerging display technologies have emerged. The product form of TV has been ever-changing and continues to change. For a long time, starting from the TV hardware technology and function of the TV product, and realizing the iterative update of the product line, it is the key to most consumers of traditional TV manufacturers.

First of all, from last year to the present, the focus of public opinion in the TV industry is all about the competition between TV display technologies, "the battle for display technology is getting worse", "the battle for display technology is settled", and the balance of display technology has been tilted. "The crowded reports of many other media highlight the absolute importance of TV display technology for the development of the industry. The protagonists of the so-called display technology debate are basically judged as quantum dots, OLEDs and laser TVs, especially regarding the topic of future generations of display technologies between quantum dots and OLEDs.

In order to seek development, TV companies have been painstakingly thinking about it. They think that the TV display technology camp has been selected. Among them, LG, Skyworth, Sony as the representative enterprise team OLED TV camp; Samsung, TCL and Hisense-led TV manufacturers locked the quantum dot camp unwavering. The struggle between "Q" and "O" this year is a rapid escalation, setting off a wave of war of words.

Secondly, in this year's TV spring new product launch conference, the debate over the control of TV functions has become more and more prominent, that is, the debate on "Which artificial TV is strong" has risen.

On March 21, Xiaomi released the artificial intelligence voice version of the smart TV 4A, and cooperated with the thin words RSVP, Triangle Beast, Sogou, and integrated the voice assistant on the TV. Then, on March 28, Changhong was at the artificial intelligence new product launch conference. Showcased AICenter, a new smart home life solution centered on artificial intelligence TV. Changhong AICenter focuses on new products such as Q5N artificial intelligence TV, which realizes the interconnection of refrigerators, air conditioners, air purifiers, audio, lighting, curtains, security, kitchens, etc. On April 5th, micro whales also followed the launch of artificial intelligence TV. Formally enter the era of intelligent voice 2.0, which can realize intelligent intelligent service such as intelligent emotion recognition, accurate content on demand, schedule reminder; on May 10, Storm TV launched artificial remote TV X5ECHO without remote control voice... artificial intelligence TV The rise has added more vitality to the battle for hardware in TV products.

Of course, the development environment of the TV industry is extremely complicated. In addition to the TV display technology and the control of special functions, hardware struggles in other fields such as curved surfaces, large screens, and AR TVs are also surging. During the AWE in Shanghai this year, Konka exhibited two new OLED TV products. At the end of August last year, Skyworth pioneered two new OLED TVs with AR (Augmented Reality) function in the industry, which caused a bloody storm...

The core of operating products is to meet the actual experience of users watching TV, using TV product hardware technology, functional innovation and upgrade to attract consumers, trying to get consumers' affirmation and favor. This is particularly evident at the stage when consumer demand stays at the level of hardware experience.

User management

However, the development of the times is not static. The rise of the Internet tide has gradually spread to the television industry and gradually changed the trajectory of the development of the television industry. Four years ago, by the Internet, LeTV, Xiaomi, etc. entered the TV industry, and then Internet TV gradually emerged, including storms, micro-whales, popular, PPTV and emerging Thunderbirds, VIDAA and so on.

With the rapid expansion of cost-effective, Internet-style marketing and diversified content resources, these Internet TV brands have entered the market with the market share of traditional manufacturers from scratch and from one to the other. According to Ovi Cloud.com, the market share of domestic traditional brands in 2016 was 66.6%, a decrease of 7.2 percentage points. Relative to the Internet brand market share has reached 18.9%, an increase of 8 percentage points; on the other hand, the entry of Internet TV has also effectively changed the business operation mode of the original TV industry - the "content is king" concept prevails, and electricity Multi-ecological cooperation in business, education, games, etc., profiting from content and services.

As LeTV Liang Jun said, letting the market accept paid members is only the first step in its plan. After that, it will continue to try and integrate the Internet business to enhance users' experience in games, music, fitness services and information.

With the continuous deepening and gradual improvement of Internet TV, it has begun to threaten the survival and development of traditional TV manufacturers. Traditional TV companies are not willing to be the foundries of Internet TV, but also use Internet thinking to fight back. Traditional TV manufacturers are also constantly "internetizing" to enhance content and user operations.

For example, the high-end Internet TV brand VIDAA of Hisense, based on the VIDAA smart TV system released a few years ago, realizes the operation of independent Internet sub-brands; Skyworth and Alibaba jointly released the “Cool Open” home Internet TV, and for the first time will be “Cool Open”. "Defined as a sub-brand online; Changhong TV chose to cooperate with Tencent to make up for Changhong's content resources, shortcomings in film and television entertainment... Traditional TV manufacturers have found a suitable business operation mode, that is, through strengthening product experience and content operation The dual way to stick to the increasingly discerning consumer base, and gradually open the door to new sales in the Internet era.

In particular, the transformation of traditional TV manufacturers' operating mode of thinking is on the one hand the bottleneck of profit growth, the reality that enterprises must find new growth points, and the rapid expansion of Internet TV; on the other hand, the user's own personalized needs are highlighted. result. The growing number of young consumer groups has made the personalized demand in the TV market even more prominent. Technology has made great strides in improving the user experience of video viewing, but content copyright is still the biggest obstacle for TV manufacturers to provide consumers with what they really want.

"Before choosing TV is more about watching the screen. Whose screen is used, the display is good, there are no more functions, but now choose TV not only pay attention to screen, color, price, performance, but also pay attention to Internet service, content. And whether there is a more complete and complete experience.


"Liang Jun said this is the truth. Content operations, a little bit, that is, user operations.

At present, more and more consumers want to pay for their own personalized needs. Some people say that since the birth of the Internet, it has been subversive. It serves the public and makes life more convenient. For TV companies, it is the general trend to operate with Internet thinking.

However, the shift from a business model to a business user does not mean that the business model of today's business users has been successfully transformed in the TV industry. In my opinion, there are the following points:

First, the business products are transitioning to the business model of operating users. Product experience is still the focus of most consumers, industry competition is more reflected in the innovative technology and functions of TV products, from the current TV display technology dispute can be seen.

According to data from iResearch, among the TV standards that Chinese consumers are most concerned about in 2016, the first five standards are word of mouth, hardware, configuration and rich content. Hardware and configuration are at the forefront, but it is undeniable that user personalized content services are beginning to appear gradually and are increasingly used by enterprises.

Second, TV companies extend their focus on user experience to deeper user needs, which can bring long-term service benefits to themselves, and better meet the needs of personalized products and services that users want and need most. TV companies are paying more and more attention to user needs, especially deep spiritual needs.

Third, "Which hardware is in good condition, and whoever sells TV well", such market measurement standards are harsh and rigid. "Today's Internet model has opened up a new era of strong sample. The quality of the content is the common choice of all users, not only the error is small, but also easier to be true and reliable." Liang Jun bluntly. Obviously, the transition from product management to user business model can bring more opportunities for small and medium-sized TV brand enterprises.

The business model of the TV industry is undergoing major changes, and the business philosophy of customer first will be more prominent. At this turning point in history, who can grasp the opportunity and rise up is worthy of the expectation.

Editor in charge: Li Qun

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