Internet TV Differentiation Competition Shows Industry Reshuffle Has Been Opened

According to data from Ove Cloud Network, the market share of Internet TV brand manufacturers in the first half of the year fell by 4% year-on-year, and China Excel's data showed that sales of LeTV from January to July accounted for more than 50% of the year-on-year decline. The market has been in danger and life is getting worse. How to break through the fate in a dilemma and how to make the difference bigger and better is the focus of a new round of thinking for Internet TV companies.

To make featured content and increase content resource snatch

Up to now, SARFT has issued seven Internet TV Integrated Service Licenses (OTTs), namely CNTV, Hangzhou Huaji, BesTV, Southern Media (601900), Hunan TV, China International Radio, and Central People's Radio. Only if you have a license, you have the right to broadcast and control, and you are eligible to launch independent content distribution services for Internet TV and Internet STB. This means that to do Internet TV, you must have license resources.

In an interview with reporters, CIBN Internet Television’s CTO Ke Hengzhong frankly stated that there are conceptual differences between traditional TV terminal manufacturers and Internet TV manufacturers that have entered in recent years. The traditional terminal manufacturers' demands are mainly hardware sales as the main purpose, to build a supply chain system, sales network and after-sales service system, with emphasis on hardware sales. The follow-up content value-added services surrounding user services are relatively weak. The main motivation for Internet TV terminal manufacturers to enter is to obtain high-viscosity users. Because of the high availability, high-frequency use, and a terminal that can easily cover a family, Internet TV is inherently a premium carrier for video content. Service-oriented mining potential business value, based on product package content payment and advertising revenue for the business model to build Internet TV ecology. This is the reason why upstream Internet content companies cut into the production of terminals.

Any Internet TV terminal (including all-in-one devices, various set-top box devices, micro investment devices, etc.) must provide the user with the OTT content interaction service, and must accept the audit, filing, and broadcast control of the Internet TV licensee. "As a license plate operator, CIBN Internet TV needs to audit, report, and broadcast the terminal devices and APPs that access the network, the content provided to users, and the user's access behavior. While performing the industry supervision functions, we also integrate A large amount of high-quality content is used to provide services to different terminals through various channels.For example, we provide CIBN high-definition film and television APP based on C-end users. Based on B-side, we provide special content services for different industries and user groups, including education. , Zen culture, Oriental Theatre, health and other content service projects.In addition to commercial purposes, these features create more idealistic feelings. Actually, no matter whether it is syndicated content or self-control, or the multiple development of IP. Diversification of content can lead to a better profit model, which has become a consensus.” Ke Hengzhong said.

According to Ke Hengzhong, the content of CIBN Internet TV stocks is very rich now, but it will be more advantageous to create differentiation in the market competition. Therefore, CIBN Internet TV should focus on creating distinctive content, and at the same time, it began exploring the construction of market segment content to meet User personalized content requirements.

Taking education as an example, according to Yang Dawei, the person in charge of CIBN education, the biggest problem in China’s education is the uneven distribution of resources, that is, the lack of quality content. Online education can theoretically solve this problem and it breaks the boundaries. Restrictions, so that quality teachers and content can be spread more widely with Internet TV platforms.

At present, in terms of education, in addition to content aggregation and service provision, CIBN Internet TV has also developed a series of three-terminal interoperable and intelligent education terminals that cover children, primary school students, secondary schools, and vocational education. Taking Anhui TV class in primary and secondary schools as an example, we have successfully covered more than 1,000 schools in Anhui Province. In some schools, teachers use CIBN's educational products during their daily classes.

Traditional TV upgrade to Internet TV

Internet TV is a highly integrated product of television services and the Internet, and is a new form of television upgrade. With the acceleration of the process of triple play, the acceleration of Internet bandwidth acceleration, and the upgrading of software and hardware levels and the popularity of smart TVs, Internet TV has entered a stage of rapid development.

“Internet TV is the inevitable result of traditional television intelligence. Simply put, adding a hardware board with computing, storage, and application development capabilities becomes an intelligent Internet TV that can access a variety of Internet content and services. Replacement is what is happening," said Ke Hengzhong.

Ke Hengzhong explained that with the application and development of new technologies on television, especially the popularity of intelligent embedded systems and application platforms, television will become more and more intelligent, and 4K televisions will soon become mainstream in the future. In addition, the development of technologies such as communications technology, video technology, cloud technology, big data, and artificial intelligence also brings development opportunities to televisions. The television will be more humanized and the communication transmission will also be IP-based. As an important screen, TV plays an increasingly important role in people's lives, entertainment, education, and health.

"Differentiation" is king or can reshape the market

At present, China is in the stage of consumption upgrade. From material consumption to enjoyment-based consumption, consumers have higher requirements for quality and experience. The price drive has passed, and brands and quality are the most concerned factors for consumers.

Previously, in terms of content, traditional TV brands have realized the importance of Internet content, and have cooperated with major internet content giants, resulting in no longer uniqueness of Internet color TV brands. At the same time, panel prices have continued to rise, the pressure behind the capital side, etc. The factors that have caused the Internet color TV brands to use the previous price means to participate in market competition have already failed. Yikang, a market research agency, believes that the Internet color TV brands must enter the second phase of differentiated quality competition from the first phase of competition with obvious price characteristics.

Zhong Yikang said that if the Internet color TV brand wants to continue to gain a place in the future competition, it must provide consumers with products and service experiences that have different quality in certain aspects. Through product quality, we gain more consumer recognition and loyalty, and gradually accumulate more brand assets to prepare for the third stage of brand competition.