LeTV is facing the most severe crisis. It has been a commercial model for Internet TV. Today, the continuous crisis and negative news of music videos have caused the industry to fall into a depression.
Leti crisis triggered industrial earthquake
According to data provided by the survey agency, in the first half of 2017, the domestic retail share of the traditional color TV brand market was 69.1%, a decrease of 0.3 percentage point from the same period of last year; and the retail share of the Internet color TV brand market was 12.0%, which was a decrease of 4.0 percentage points from the same period of last year. Internet TV collective encounter winter.
It is reported that LeTV’s actual sales in the first half of this year have fallen to less than 1 million units, and it is expected that the annual sales volume will not exceed 2 million units, and the sales target of 7 million units in the whole year will not be realized. According to another source, LeTV will shut down some TV factories and even give up TV business.
Sales of Storm TVs and Microwhales, which are similar to LeTV, have also suffered from Waterloo. In 2016, the shipment of Storm TV exceeded 1 million units, and the production of TVs for micro-whales reached 800,000 units. According to the latest data obtained by the State Grid Corporation of China from insiders, the current shipment of Storm TV is 50. Million units, only about 400,000 TVs were shipped with micro-whales.
According to the 2017 mid-year report of Stormwind Technology, the income was 826 million yuan, an increase of 66.89% year-on-year; however, the net profit was only 1572.49 million yuan, a year-on-year decrease of 16.64%. Storm CFO Jiang Hao once said that the most important reason for the decline in net profit was the loss of the television business. As the investment in storm TV increased, the absolute value of the loss increased with the high-speed growth of 146%. Return to the mother's net profit fell. Feng Xin, CEO of Storm Group, revealed that in 2016, each Storm TV sold would have a loss of 300-400 dollars.
The information previously released by Microwhale Technology shows that in 2015 revenue was 137.8 million yuan and net loss was 131.5 million yuan. Total assets were 185.2 million yuan and liabilities were 316.7 million yuan. In March this year, small whale electrical appliances were blown out of losses of more than one billion.
One obvious change is that Internet TV has been collectively silent since the second half of this year. Prior to this, LeTV had nearly 200 "PPT conferences" each year. Other brands also made several announcements and made new appearances each year. However, since the LeTV crisis broke out, most Internet TV brands have entered a silent period.
The Letv crisis has caused the industry to follow earthquakes. "There must be something." The founder and CEO of an Internet TV brand headquartered in Beijing responded when a reporter from China National Grid asked if LeTV had any negative impact on the image and sales of Internet TV brands in the terminal.
Regarding the LeTV model and its impact on the industry, the above-mentioned senior officials commented to reporters that “the business model of LeTV itself has no problems and there is hope for profitability. LeTV has also made a scale. However, the financial issues of the Da LeTV system have affected LeTV's basic video copyrights and content, coupled with the lack of quality IP support from LeTV and LeTV, are not attractive.
"This year's color TV industry is not good, but LeTV (TV) has an additive effect on the Internet TV industry," the executive said. "It's worse."
The Internet TV brand made frequent moves before the first half of this year and vocalized in the industry. However, the top executive stated that the company is currently in a "silent period" and "the recent business is being optimized. It is mainly aimed at the operation and deep user value of the Internet TV family platform. Aspect (Adjustment)."
Gu Yingqiong, a software engineer of EBay USA Seattle Branch, has been on the headline every day for a period of three months. The former chairman of LeTV.com, Jia Yueting, has made headlines because of this series of articles on the media platform. Gu Yingqiong exposed the LeTV model problem in his series of articles.
LeTV developed a lot of Lepa stores, Gu Yingqiong said that "more than 98% are losing money, LeTV is constantly flickering home appliance companies to do experience shop." According to him, the sales style of LeTV is "tell you that you are very profitable, and tell you how to make money, so that you can purchase at a high price, but do not give you goods under pressure, they shop, online channel sales priority, and offline as LeTV no profit Space, the market share of offline agents, is small and small enough to survive.†According to him, LeTV and its music store “are just a Ponzi schemeâ€.
Outsiders have different opinions on music, and there are many opinions. Popular TV CEO Zhou Kun told reporters from China National Grid that "Lost Vision's money-losing model eventually became a bottomless pit. LeTV should have been separated and abandoned by channels, customers, and consumers. Its brand and image have been through this year. The fermentation was completely broken."
LeTV, as well as storms and micro-whales, their models are exactly the same, and their crisis is essentially caused by the money-burning model. LeTV and Storm are video websites. After listing, they have the same development path as Internet TV, film and TV, sports, VR equipment, and finance. They all use content to subsidize hardware and low-cost sales strategies. TV business revenue growth is rapid. , But losses continue every year. Since the online entertainment market in LeTV has exceeded 3.5 billion yuan per year, the listing of the storm has amounted to 1.012 billion yuan.
Is there any dawn in Internet TV?
Especially after the eruption of the LeTV crisis, the impact on the entire Internet TV industry was obvious.
Dong Min, vice president of Aowei Cloud Network, told the reporter of China National Grid that “LTV has an impact on the low tide of Internet TV companies.†Dong Min believes that the overall environment of the TV industry is not good, including panel prices are high, making traditional brands and Internet brands have fallen sharply, and price wars have been difficult to sustain. Internet companies have experienced a complete ebb and decline in their operations and financing.
Liu Buchen, an observer of the household appliances industry, believes that from the perspective of industry, the birth of Internet TV broke the traditional single-chip hardware profit model for a long time and realized the “hardware + software†dual-profit model. The business model has indeed been innovative; Look, there is no essential difference between Internet TV and traditional TV. Its content and services have not been able to surpass traditional TVs. Because it has never been possible to establish differentiated advantages, Internet TV has finally been questioned by consumers.
“Whether it is an Internet brand or a traditional brand, there is no essential difference between business models and methods. The most important thing is that your products and information should let consumers know that your products are traditionally alternative†and that they are also doing Internet TV. Popular TV CEO Zhou Kun was still confident about the entire industry when interviewed by the reporters from the China National Grid. He told reporters: “Looking at the Internet brand camp, I hope that LeTV, Storm, and the Little Whales can all do a good job for this industry. Development is a good thing, but their failure to do a good job does not mean that the development of the Internet TV industry is not good, because the future of this industry is determined by consumer demand and bandwidth. These two factors are very optimistic. At present, over 90% of households in rural areas are Has broadband access."
According to the latest news, LeTV recently “talked†with BAT and wondered if it would attract a new round of investment. According to a new LeTV insider revealed: "At present LeTV production is being restored, in LeTV's industrial chain related aspects of the restoration work is also in progress."
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