"When the era of negative profits comes, will the fare be far behind?" Since LeTV Jia Yueting predicted that the era of free-to-air TV is coming soon, it has triggered the industry's big thoughts on whether future TV hardware can be free. If the hardware is free in the future, then TV free in the future will be within easy reach.


“However, looking at the current color TV market, very colorful companies are fighting for a price war in the name of “infinite innovation”. If the hardware is free, this will bring disaster to the traditional TV companies.” In response, the industry analysts said . So, what exactly can color TV companies do to be passive and active, and to win a place in the future market competition? The answer is differentiated competition. Why? May wish to analyze with the editors.

First of all, let's talk about Jia Yueting's view of the color TV future market. Jia Yueting believes that television is not content with hardware, super TV can be carried out below the cost of mass production, and LeTV's ecosystem can subsidize hardware. This view indicates that there will be no reason for the color TV market to usher in the era of free hardware.


Looking at the domestic color TV market, since March, several Internet companies including LeTV, Xiaomi, and Popularity have been continuously squeezing out color TV prices at a low rate. Following the eye-catching prices of millet TVs, LeTV is even more dismissive than it is. After the release of the 65-inch and 55-inch two-size TV, the listing price was 7,999 yuan and 4,999 yuan. Among them, the 65-inch price is 1,000 yuan less than millet.

In this regard, people in the industry believe that companies like Xiaomi’s Internet origin have normal hardware costs. They rely on the input of TV products instead of hardware to make money, but occupy the status of home terminals and export industrial chain resources. In fact, both LeTV and Xiaomi are sending a set-top box to build a service model similar to that of broadcaster Gehua, but with the mode of profit-making for viewing fees.


Second, while very colorful electric companies do not stand, they have found a way to actively embrace the Internet and deploy hardware and services. Let’s take TCL for example. After LeTV announced that it had invested in TCL Multimedia for three months, both parties announced that they would jointly unite the TCL in the field of Nuggets, and TCL’s global broadcast and LeTV will be synchronized with movie theaters. In addition, the two parties will also cooperate in user operations, television content and other aspects. TCL chose to cooperate with Internet companies and share content for profit.

Coincidentally, Changhong did not continue to follow up on prices. Instead, it focused on the HDR technology that is hot for this year's industry. Based on the needs of users' family viewing, the company launched the UMAX cinema system in terms of quality, sound, and content. In addition, Changhong launched the UP platform, an operation support platform for IOT. In short, Changhong relies on the advantages of intelligent manufacturing, software development, big data operation, military information technology, and security technology to unlock the potential of data and accelerate smart strategy.


In this regard, Ma Junying believes that both TCL and Changhong have adopted the method of “adversing in and retreating from the enemy”. While Internet companies are desperately fighting for price, traditional TV companies adopt the “hardware + service” model.

Finally, many experts believe that in the future, traditional enterprises and service providers are likely to be rooted in different market segments, and direct competition will not occur again. However, the situation of cooperation between the two factions cannot be ruled out. In order to improve the quality of services, traditional product offerings or OEMs are selected to increase the temptation to profit from services. The service will also become the marketing gimmick of traditional enterprises. Hardware is not impossible.


Written in the end: Under the new normal of the current TV market, traditional enterprises should actively adjust the industry's transformation strategy, actively embrace the Internet of Things, enhance their core competitiveness, and actively expand service content. Only in this way can they be established for a long time. TV market is invincible.

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