Speaking of China's color TV industry, people's first impression may be that the increasingly strong Internet TV and traditional color TV companies remain in their positions. However, the contest between the two sides is somewhat "on the protracted war". As a veteran of the TV industry said, Internet TV is good at marketing slogans and appears to have an overwhelming advantage, but “this is a protracted war. We are not afraid of itâ€. The veteran’s words are not fictitious. From the 2016 financial reports announced by major TV companies in the near future, they can snoop through. In general, the overall performance of the global TV market in 2016 was sluggish, and specific to China. According to HIS data, the sales volume of the Chinese color TV market was approximately 52.03 million units, an increase of 7.4% year-on-year; the sales volume of China's color TV market was approximately RMB 154 billion, a year-on-year decrease of 6.2%. . In terms of specific financial reports, Skyworth and Hisense have occupied most of the color TV industry, and TCL began to return to profitability. Among them, Hisense achieved a revenue of 31.8 billion yuan, a profit of 1.8 billion yuan, an increase of 18%, which was particularly inconsistent, and Skyworth's operating revenue of 5.927 billion yuan in 2016, an increase of 8.19%, and its net for the past 5 years. The compound annual growth of profit is about 12%; TCL Multimedia's annual sales revenue is 28.6 billion yuan, an increase of more than 4% year-on-year; Sichuan Changhong's 2016 operating revenue was 67.175 billion yuan, an increase of 3.59% year-on-year, of which size 55 and above color TV, 4K TV sales increased by 87.5% and 113.4% year-on-year, while Konka, which was once slightly sluggish, also improved. In 2016, it achieved operating revenue of 20.299 billion yuan, a year-on-year increase of 10.35%. But on the other hand, Internet TV companies that have stirred up the situation are rather embarrassing. Taking spoiler music as an example, LeTV's 2016 annual report shows that because of the high configuration, high performance, ultimate experience, and subversive price, the early-stage super TVs quickly acquired users, as well as the management costs and sales costs brought about by the rapid development of the company. Rising, the company's operating profit decreased year-on-year. It can be said that in the overall sluggish and tortuous color TV industry in 2016, traditional black power companies should have said "Ginger is still old," and they really are not afraid of protracted war. As we all know, in 2016, due to the fluctuation of raw material prices and the fluctuation of exchange rates, the home appliance industry has caused the price of products to rise. Some Internet TV companies, priced below the cost of production, have been forced to “force†prices. Different from this style is the traditional color TV brand. Not only did they not break their intestines like the Internet brand, but they declared their victory to Internet TV with strong financial data, and they also made a beautiful appearance on the international stage. The data shows that in 2016 China's color TV brand's share in the world reached 30%, surpassing South Korea for the first time. In terms of brand sales, TCL accounted for 8% of the sales volume, and Hisense and Skyworth ranked fourth and fifth with market share of 7% and 6.6% respectively. The traditional color TV brand is convinced that it can win with “protracted war†and is not empty talk or luck. As far as the facts are concerned, since the reform and opening up, the price war in China's television industry has become commonplace. The traditional black giants used it for 20 years before and after, defeating many foreign brands by price means. The "price war" method that is lower than the production price, while allowing traditional enterprises to sigh over Internet TV, it is also quite relevant to the public's ingenious gesture. Because they neglected, under the pressure of economic downturn, healthy cash flow is particularly important, and they can not stand the cost pressure several times to raise prices, it already means that they are eating the "low-cost strategy". At the same time, after LeTV and Xiaomi and other Internet TV companies, many Internet TVs have emerged in succession. Just as appliance analyst Liang Zhenpeng said, when the situation is too low, there are many options, and profits will naturally be affected. In addition, another major drawback of Internet TV's difficulty contending with traditional TVs is its profit model - profitable with "software." Liu Buchen, an observer of the household appliance industry, pointed out that the astuteness of Internet companies is that they clearly know that if they simply compete for hardware, they are still very light. Once the focus of competition has been introduced to software and content through low-cost methods, the entire television industry will be able to enter the second half of the Internet. However, there are so many "lucky" worlds, there is no accumulation of traditional color TV companies, low-cost Internet TV encountered the tortuous situation in the 2016 color TV industry, it can only be unsustainable. Liang Zhenpeng frankly stated that none of the world’s consumer electronics companies have profited through software content so far, even if Apple’s annual software service revenue accounts for less than 10% of the company’s total revenue. Therefore, Internet TV is trying to make a profit by using software content at a price lower than the production price. This is an upside down in the manufacturing industry. This is the truth that traditional color TV companies have been able to understand after years of invading the manufacturing industry, and it is also the key to the Internet companies’ wanting to take the lead and grab more market share. Thirty years into the three decades of Hedong, Hexi had the longest laugh to finally laugh. In the past 30 years, traditional TV companies have become accustomed to the influx and departure of new players. If not, then the market will let the brand collapse. 2016 has become history, and in 2017, the "protracted war" in the color TV industry seems even more severe. Compared with last year's hot sales, this year's color TV market started to suffer coldness, and the overall sales volume was negative. This also seems to correspond to the words of the color TV industry veterans, color TV industry "squeak" is really a protracted war. 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