Internet Occupation of the Living Room Internet Watching TV Has Become an Inexorable Trend

Because of the radio and television ban and the deletion of the live broadcast feature and the resulting reduction in the number of sources, how has the highly respected Internet TV box performed in the recent market?

In the stall on the fourth floor of an electronics market on Sanhao Street, the tepid market performance of the TV box made Guo Linlin, the owner of the TV box, the first to operate. In an interview with the reporter, Guo Linlin said that because she was optimistic about the market potential of the Internet TV box, she ended up dropping other businesses in 2012 and devoted himself entirely to Internet TV box marketing. "The advantages of Internet TV boxes are too numerous to enumerate, and indeed our distributors have tasted sweetness." Guo Linlin uses his agent's products as an example. The cheaper TV boxes sell for more than 100 yuan, and the most expensive ones cost as much as four or five hundred yuan. Although the net profit of each box is up to tens of yuan, retail sales can only sell 70 to 80 units a day. "In addition to shipping and delivery of regional goods, the annual sales volume is about 30,000 units."

However, as various types of video and live broadcast software were taken off the market and the resulting sentiment of watching the market, TV box sales fell sharply, and orders for regional agents also plummeted. Guo Linlin frankly stated that on the one hand, there are indeed policy reasons. On the one hand, it also comes from the impact of e-commerce on entity sales. "Anyway, now electronics-related industries have not been affected by the Internet."

In stark contrast to offline sales, the Internet TV box is extremely hot online. According to public reports from the media, according to data provided by Taobao, in September, when a large amount of video software was removed, the volume of Internet TV boxes increased by 454% year-on-year, and the volume of a TV box exceeded 30,000 units in a single month. .

There are also bold predictions that the number of Internet TV boxes is expected to reach 40 million units this year, because only 20 million units were shipped in the first quarter of this year.

The reason why Internet TV boxes are selling on the Internet is really because of the advantages of using e-commerce platforms, but more because some products are not supervised, or simply use a “vest” instead. Guo Linlin also gave specific examples to reporters. Although a well-known video software has indeed been removed, it did not take long to launch the MAX version for download. “In fact, it is the big companies that are really affected. The small workshop products in Shenzhen are all good.” Guo Linlin told reporters, “Because people do not cooperate with the licensees, they will be more free to start things.”

Lai Dragon is under the supervision of the licensing system

While creating a myth of sales, the Internet TV box is also squeezing and squeezing the traditional TV market. This has led to discussions about the survival of traditional TVs.

Guo Linlin said that the “Shanzhai Internet TV Box” is also an Internet TV box product produced by SMEs in the South without brand awareness.

Yao Yuan, an analyst at a security company in Shenyang, told reporters that the reason why the so-called cottage TV box was not regulated was mainly because the relevant companies did not cooperate with the licensees and naturally escaped the supervision of relevant departments. “Analyzing the above issues is from The birth of the TV box will help consumers to straighten out the relationship."

Yao Yuan said in an interview with reporters that consumers should not be unfamiliar with the Internet TV boxes. Its initial name was called a high-definition network player. China's earliest company in this field was Shanda. "I think as long as people who play the legend of hyperventilation, they will know more about this company." Yao Yuan said that Shanda Company entered the market with a TV box in October 2005. Its main intention is to TV the contents of the Internet. " Although Shanda Company is full of confidence in its products, the product has died in almost half a year, and the important reason is that it has not been approved by the broadcasting and television system."

However, with the Internet, however, with the rapid popularity of the Internet in domestic homes and the need of consumers for watching video programs, especially the hundreds of millions of non-smart TVs in China, Internet TV boxes have exploded rapidly in 2011. “The State Administration of Radio, Film and Television (SARFT) also issued guidance policies to standardize the Internet TV box business in October 2011.” Yao Yuan pointed to the relevant provisions on the computer screen, saying that the document entitled “Operating Requirements for the Management of Internet TV License Organizations” The TV box is required to connect only 7 Internet TV integration platforms with licenses. "And there must be no other access to the Internet, except that the problem was not so serious before."

Fan Xujing, an attorney with Liaoning Hushen Law Firm, also said that in addition to the seven platforms that have licenses in China, there are 13 companies that have content service licenses, and all other software entering TV is a violation. “The reason why Shanzhai Internet TV Box was not affected was mainly because they did not cooperate with the licensee.” Fan Xujing said in an interview with reporters that the main reason is that the fees charged by the licensees are too high and the contents provided are too monotonous. It also creates seemingly formal corporate violations, and companies that appear to be violating regulations have succeeded in evading supervision.” Fan Xujing also said that in fact, the inventory and the removal of some software were not the introduction of a New Deal by the General Administration of Press, Publication, Radio, Film and Television to regulate the market. It is the continuation and observation of the original policy regulations.


Will the trend toward the network occupy the living room into a major trend in the future?

While creating a myth of sales, the Internet TV box is also substantially occupying and squeezing the traditional TV market, and this has led to discussions about the survival of traditional TVs. "In capturing the living room market, not only video companies, but also major broadband network operators from the country." Yao Yuan said that the content from the media publicly reported shows that the market share of Internet TV boxes represented by millet boxes. In fact, there is only about 10%, and most of the TV boxes in consumers' homes are actually complimentary products.

Yao Yuan used a broadband operator in Shencheng as an example to say that consumers only donated TV boxes as long as they installed their broadband. Although their functions do not seem to be powerful, they can meet the needs of most consumers. "Although its function does not seem to be a powerful box of millet, it can satisfy the needs of most consumers." After the Internet TV box enters millions of households, it brings more and more visual feast to consumers. People stay away from television. “Yao Yuan said that although people sit in the living room watching TV, they watch videos through online video software, and they no longer watch TV through traditional TV stations, which in turn causes the actual TV operating rate to drop.

Public reports from the media also corroborated Yao Yuan’s statement: The TV operating rate in Beijing was reduced from 70% to 30%, while the average viewing time of video websites was 1.8 hours, and the average viewing time of video websites exceeded 0.12 hours per day.

Yao Yuan frankly stated that the decrease in viewing time will naturally affect the ratings, which will bring about this or that problem, and the Internet TV box market will also face reshuffle.

Yao Yuan also revealed in an interview with reporters that at present, there are approximately 400 million households in China. The vast majority do not have smart TVs installed. According to the 200 yuan per Internet TV box, this means that there will be a total of 80 billion yuan in the market. "But in reality most of the TV boxes don't make money, or do not rely on the hardware market to make money." Yao Yuan admitted in an interview with reporters that its main intention is to occupy the living room market, "such as the cat's box produced by Alibaba, which Not only can the TV box function be provided, but it is important that one can access Taobao. "All hardware and software production and distribution companies are also actively considering strategies for policy supervision. The practice of a TV production company in China is to effectively associate a traditional TV with a mobile phone and project the video on the mobile phone onto a TV screen.

There are also public reports from the media pointed out that at present, most domestic cable TV companies have formed their views. The practice of watching video on the Internet has become a trend, while the limited TV network either carries out the same business, or it needs to improve content services to compete.
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