Loss of smart TV profit model into a collective puzzle in the industry

If you buy a smart TV that has Internet access, full HD 3D somatosensory games, video calling, home KTV, and online education, what kind of application would you like?

Sun Dongwen, president of Skyworth Group, said in an exclusive interview with reporters recently that although the current smart TV shipments are increasing, the access rate of Skyworth smart TVs is only about 30%. “The vast majority of users buy back or watch traditional TV programs.” He said: "But like smartphones are becoming more popular, smart TVs will be gradually recognized by consumers. In the next few years, smart TVs will bring as much change to the color TV industry as smartphones and PDAs. ”

Only 30% of users use smart TV function

With long-term ultra-low profit margins, young TV viewers have gradually turned to PCs and video sites, and traditional TV manufacturers face an unprecedented crisis of survival. In order to increase the profitability of products and make television a home entertainment center again, Chinese color TV companies have begun to promote smart TVs.

Last year, smart TVs entered a period of rapid popularity in China, when China’s smart TV shipments reached 8 million units. According to the latest report of the survey organization Yikang, this year, domestic smart TV shipments are expected to reach 18.73 million units.

In Yang Dongwen’s view, smart TVs will implement various applications such as web search, IP television, video on demand (VOD), digital music, online news, and online video telephony. TVs are becoming the third type of information access terminal after computers and mobile phones.

“But according to our tracking and monitoring, only less than 30% of the users really use the smart TV function. At present, the most widely used games are games and online videos.” Yang Dongwen said that users’ habits need to be cultivated. “Like I used to not use intelligence before.” The function inside the mobile phone is the same, but when the market is all smart phones, the application is very rich, and you can always find your favorite application."

Related figures from the China Electronics Video Industry Association also pointed out that the survey conducted by the association and a number of market research companies showed that the actual number of active Internet TV users (on average, one hour per day) was less than 10%.

Smart TV APP: The next 100 billion gold mine?

In the field of smart TV applications, manufacturers have demonstrated their capabilities, Skyworth has promoted “cloud health”, and Konka has played “weibo TV” cards. However, objectively speaking, there is no killer application at the moment that can make consumers completely inseparable from intelligence. TV, not to mention the profit model. Yang Dongwen frankly stated: “None of us has yet found a way to make money on smart TVs.” This is also a collective puzzle faced by the entire TV industry.

Skyworth hopes to achieve a breakthrough through the "wide spread" approach. Yang Dongwen revealed that Skyworth has cooperated with more than 20 IT internet companies in various fields: cooperation with Fantastic Art, LeTV, and Tencent in the content field, and establishing cooperation with BesTV and Southern Media, which have obtained Internet TV licenses. "Cooperation is the lowest cost method for Skyworth. Skyworth needs a variety of differentiated applications. These Internet companies also want to extend their products to the smart TV field. This is a win-win option."

Hisense is heavily rewarded with "Angry Birds" in the field of smart TV. “So far, there have been no commercial successes in mobile applications that have been ported to television. The advantages of high-definition, large-screen, and multiplayer TV sharing have not yet been realized. This is the cornerstone of TV APP development.” Zhixin Wang, Vice President of Hisense Group, told reporters Said that Hisense has set up a tens of millions of bonus "Hisense Smart TV Application Contest", in the hope that the domestic APP masters will switch to smart TV. "Hisense officially opens the Smart TV SDK (Software Development Kit). In addition to bonuses, developers can also participate in the late-stage division." He believes that smart TV applications will be the next hundred billion dollars for investors and developers. mine.

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