Fengxing. com has brought 4 companies together to make Internet TV. Is the power of having more people really great?

Just at this time, another disrupter with the same approach came in-Fengxing Online, Oriental Pearl, Zhaochi, Haier, and Gome recently announced that the five companies will cooperate in depth through capital shares to jointly enter the Internet TV industry.

In the past two years, as Internet companies such as LeTV, Xiaomi, and PPTV have disrupted the TV field across borders, including traditional TV manufacturers who have deployed smart TVs, Internet TV has been regarded as the entrance and core of all walks of life's competition for the "living room economy." Third-party data shows that the value of hardware and derived services created by the entire living room economy this year will be 230 billion yuan.

Market disruptors LeTV and Xiaomi have created models that are different from traditional TV companies that rely mainly on hardware charges. They want to make money through content and service charges. They have adopted "low prices" selling points from the beginning to open up the market and attract users--This concept has gradually been used by more industry players. Let's sort it out: Hisense has begun to make profits by providing value-added services for smart TV, and said that it will connect content services such as video consumption, scene shopping, online education, and large-screen games to the living room in the next three years. It hopes that the profits brought by content and services will be greater than or equal to the current profit of hard sales; TCL is also currently making efforts to promote the" smart + Internet" strategic transformation to establish a" product + service" business model; Stormwind Technology has established a joint venture with Haier Group companies Rishun, Aofei Animation, and Sannuo Digital Audio and Video to pre-create Stormwind TV; Micro Whale Technology, co-founded by Li Ruigang, former president of Shanghai Cultural and Broadcasting Corporation, and Li Huaiyu, founding general manager of BesTV, launched Internet TV Micro Whale TV.

Just at this time, another disrupter with the same approach came in-Fengxing Online, Oriental Pearl, Zhaochi, Haier, and Gome recently announced that the five companies will cooperate in depth through capital shares to jointly enter the Internet TV industry.

Simply put, after Zhaochi acquired the equity of Fengxing. com from SMG, it joined forces with several shareholders of Oriental Pearl, Gome, and Haier to use Fengxing's Internet video operation capabilities as the basis and combine the advantages of each shareholder to create an Internet TV. The TV product will be launched in November. Luo Jiangchun, CEO of Fengxing. com, even made bold remarks that Fengxing TV's goal is to sell 12 million units in three years, surpassing the combined total of Xiaomi and LeTV.

From the perspective of equity structure, currently, Oriental Pearl, SMG (the major shareholder of Oriental Pearl), Haier and Gome have invested in Zhaochi with 2.2 billion yuan, 300 million yuan, 371 million yuan and 371 million yuan respectively. Zhaochi 967 million shares account for 63% of Fengxing, and Oriental Pearl also holds nearly 20% of Fengxing. It is reported that Gome and Haier will become popular in investing, accounting for 7% respectively. So, what is the logic behind the bundling of so many companies?

Regarding the reasons why the five companies are bundled together, Luo Jiangchun explained that the Internet TV industry chain is very long, and the Internet TV industry chain is relatively long. From the integrated broadcast control platform of Internet TV, the creation and integration of video content, the operation of Internet TV content, and the ecological cultivation of open platforms, soft and hardware integrated terminal products, channels and services are indispensable in every aspect, including the impact of policy factors.

For now, Internet TV is making slow progress and the overall activity is very low. Only 5 to 6 million TVs out of 80 million TVs actively use smart TVs every day, accounting for less than 7% of the overall TV stock. Therefore, Luo Jiangchun said that we believe that the only effective solution is to bring together the forces of all aspects of the industry. Through capital means, everyone has the same goals, interests, and demands to form a complete ecosystem. Only then can we properly solve the problem faced by Internet TV today.

In addition to videos, Fengxing. com also has an advertising platform for the entire Internet industry, including games, e-commerce, and education. Therefore, Fengxing. com can provide content support among them.

It is also understood that Zhaochi's main business is the research and development, design, manufacturing and sales of home audio-visual consumer electronic products. It has a very complete product production system and superb TV manufacturing technology. It has produced 14 million TVs and 17 million set-top boxes. He entered the LED TV industry in 2008 and has been working for Haier and other TV brands. In 2010, he was listed on the main board. In other words, Zhaochi shares assume the role of technical support, which can ensure product appearance, application of new processes and cost control.

The addition of the Oriental Pearl provides an "admission ticket" for popular entry into the Internet TV market. BesTV, a subsidiary of Oriental Pearl, has an Internet TV license, with content including 500,000 authentic programs. The exclusive copyright includes Premier League, NBA, TVB, and Disney anime. "Extreme Challenge","Talent Show" and "Voice of China Dreams" are produced by SMG, the major shareholder of Oriental Pearl.

In terms of sales channels, Gome currently has 1700 stores and sells 8 million TV sets a year. Haier and Gome cover major stores and channels across the country, providing certain guarantees for the sales and after-sales service of popular Internet TVs in the future.

Taken together, Fengxing. com, which has a layout in Internet TV licenses, content, Internet genes, hardware and channels, has made sufficient preparations for its Internet TV. However, is it really that "more people are more powerful"?

This combination of "license + content + hardware + brand channels + video operations" formed by five companies seems invincible and is enough to compete with friends fighting alone, but a good game may not necessarily win the last game.

In addition, from the content point of view, Internet TV boasts the advantages of massive and high-quality content. After merging with BesTV, one of the popular shareholders, Oriental Pearl, owns a lot of copyright content. But not to mention that Xiaomi is now also investing heavily in content management, such as finding Chen Tong. LeEco also has its own uniqueness in managing video content. It is involved in series, movies, and variety shows. Sports live streaming is LeEco's strong point. Not long ago, it won the exclusive copyright of the Premier League in Hong Kong. LeEco has acquired a large number of users through painstaking management of content.

It can be seen that the popularity of Internet TV relies on strong licensees. Although it is not difficult to make an Internet TV with rich content, it must not be easy to surpass the sum of Xiaomi and LeTV.

In response to the current development status of the domestic Internet TV industry, iResearch has also analyzed: From the perspective of the entire industry, the current industry competition has fallen into a price war prematurely, which is not conducive to the healthy development of the industry; from the perspective of the industrial chain, the cooperation between all parties is loose, resulting in the lack of continuity and depth of cooperation, making it difficult to form a stable industrial interest chain; from the perspective of enterprises, a mature business model has not yet been formed; From the user level, compared with foreign markets, the payment habits of Chinese users have yet to be cultivated.

From a general perspective, industrial integration may become the development trend of Internet TV, and smart TVs with high added value are also becoming the mainstream of the market. However, the popular Internet TV that has not yet been released has released the heroic slogan of "12 million units in three years". Whether it can be achieved remains to be tested. The entry of traditional TV manufacturers and Internet companies will surely make the Internet TV market that has become a red sea more lively.

Editor: yvonne