Yesterday, iQiyi announced its strategic cooperation with Skyworth. The former invested RMB 150 million in Skye’s CoolCap, which accounted for 5% of the shares.
It seems that iQIYI's investment in CoolOpen makes its cooperation with Skyworth from the previous pure complementary content and hardware to the capital level, forming a more stable partnership to cope with fierce competition in the video and television fields. .
At the same time, in the cooperation between iQiyi and Skyworth, we saw the shadow of Xiaomi. Previously, Xiaomi had been the second largest shareholder of iQiyi in public reports. Iqiyi Investment and Xiaomi had a keen interest in the direct competition relationship in the field of Internet TV. Under normal circumstances, Xiaomi would not negotiate with Xiaomi. The completion of investment behavior basically represents Xiaomi’s identity.
As early as last year, it was reported that Xiaomi would reach a cooperation with Skyworth. At that time, LeTV had just joined TCL. At the beginning of the year, micro-whales took a stake in Konka. This is a period of alliance and warming. The possible cooperation between Xiaomi and Skyworth is very much like space.
Millet certainly wants to sell more Internet TV
Recently, there was news that the sales volume of Xiaomi's TV/box had broken 15 million. In fact, although Xiaomi did not clearly announce the sales ratio, it can be judged that most of these achievements are boxes, and TV “has nothingâ€.
Judging from Xiaomi’s TV as the voice of the “Smart Family Core,†Xiaomi wanted to sell televisions not only because his profits were more substantial, but also because TV was used as an entrance for him to obtain more traffic as his layout for the home Internet. Outpost and center of gravity.
Through TV, Xiaomi can gain a closer relationship with users and connect more "soft resources". TV will serve as a basis for Xiaomi's transformation from a product-based company to a platform-based company.
From 300,000 units in 2014 to 1 million in 2015, this is regarded as a breakthrough by Xiaomi. However, compared with traditional television companies and the largest rival LeTV, the gap is significant.
According to the data at the beginning of July, LeTV’s television ownership has reached 7 million. In the face of the “rules of the winner†in the Internet field, Xiaomi, who also works as an Internet TV, has become quite embarrassed.
Millet needs to find more possibilities for its own TV business. Faced with the various pressures of traditional TV brands and other Internet brands, allies with certain advantages in hardware production and market share are needed by Xiaomi. Skyworth is obviously a good opportunity. It is also safer to approach Skyworth through the use of Iqiyi as a bridge.
Product performance, production capacity, and supply chain pressure are difficult issues for Xiaomi. However, for Skyworth, it may be easily solved. According to Skyworth official data, Skyworth currently has 17.5 million internet terminal activations, including 14.67 million smart TVs. If you can cooperate with Skyworth, you are expected to break through the obstacles to growth.
Skyworth not only needs to release 10 million user value
Before this in-depth cooperation with iQIYI, Skyworth and Mango TV also established a cooperative relationship. Skyworth will create mango TV for Internet TV. At the same time, Gome, Skyworth and Mango TV will cooperate in the distribution of Internet TV content and licenses. , terminals, channels, operations.
Yang Dongwen, president of Skyworth Group Co., Ltd., believes that the open cooperation between Skyworth and the content will help each other optimize their business. When talking about cooperation with iQiyi, he said:
“We use the concept of a supplier as a metaphor. We have mainstream suppliers, but not exclusive suppliers, so that mainstream suppliers can continue to progress. I feel that the state of mind in the market economy is not non-you or me. With the full cooperation of capital relations, we will certainly go deeper, because the establishment of trust is very important.
Iqiyi is relying on content to eat, but other people have more jobs and are not so anxious, so I believe that if we go all out, we will win. â€
The user is based on the combination of technology and brand accumulation and “hard†aggregation. As for how to operate the user and release the user value, Skyworth is not good at it. This depends on the content and service provider of iQiyi.
In the field of the Internet, it is clear that Xiaomi, who has been playing for years, can satisfy Skyworth’s demands. Because the so-called big screen operation, not only the level of film and television content, but also includes shopping, education, games and so on. Just at the content level, Xiaomi has also built a “content alliance†that can be given to his own millet TV and box, and naturally it also benefits Skyworth. In addition, Xiaomi and its subsidiaries have penetrated into various fields under the Lei Jun’s capital operation, which will make Skyworth’s big screen operations more versatile.
Millet’s online channel resources and operating experience are also needed by Skyworth, especially in competition with Internet brands. At the same time, Skyworth may also intensify its “soft†strength. The business involved in Xiaomi’s film industry may be a good starting point. Skyworth+iqiyi+xiaomi may eventually form a model similar to TCL+LTV.
Will the five traditional TV giants all go all out?
TCL became a partner with LeTV, and Konka took the small whale, the five traditional color TV giants, and left Skyworth, Hisense and Changhong.
According to the cooperation with iQIYI, the cooperation between Skyworth and Xiaomi may not be ruled out. Of course, Skyworth may also choose to go further with Mango TV. Dual license and content production capabilities are unique resources of the latter.
After Skyworth, Hisense also had the possibility of an alliance. Of course, after Iqiyi’s shareholding has started to cool, Hisense’s capital cooperation may be more inclined to Tencent.
The inventory period of the TV market is an era of alliance. Once the “big brothersâ€, they may not be able to do their best. When the alliance is basically completed, the television market will open a new round of "bloody".
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