The smart home network news has evolved significantly, starting from the hardware aspects and pricing strategies, progressing to the core content, and finally reaching the stage of brand competition. The smart TV industry is poised for a new leap forward. Resource sharing plays a crucial role in promoting the rapid and systematic growth of the smart TV sector.
According to data from the Ministry of Industry and Information Technology, the annual production and sales of Chinese TVs have consistently hovered around 45 to 51 million units. Over the past three years, the sales of smart TVs have surged dramatically, with figures standing at 8.5 million units in 2012, 21.51 million units in 2013, 31.10 million units in 2014, and 34.12 million units in 2015. By 2015, the sales penetration rate had reached 73%, showcasing a steady increase in the adoption of smart TVs.
As the smart TV industry rapidly expands, the competition among traditional giants intensifies, accompanied by the influx of new Internet-based brands. This shift has moved away from low-priced, aggressive marketing tactics towards a focus on product value and TV content. Consequently, the relationship between traditional color TV companies and emerging Internet TV brands has evolved from being mutually exclusive and highly confrontational to one of brand alliances and collaborative efforts, effectively breaking down the barriers of closed competition within the smart TV industry.
In June of this year, Suning's brand PPTV announced an open-content sharing strategy, launching a Rubic smart TV system centered around comprehensive TV content, considered the core carrier of their sharing strategy. Additionally, PPTV shared exclusive rights to over 10 billion yuan worth of premium content, including top IPs like La Liga, China Super League, AFC Champions, etc., and declared its intent to collaborate with Konka, Philips, Sharp, and other TV manufacturers to create a "platform + hardware + content" ecosystem.
Not long ago, Konka and PPTV jointly developed the new Tianhe series of smart TVs, which were officially listed on Suning Tesco. This marks the first model released following the announcement of PPTV's open strategy at their June strategy conference. Such collaborations enable PPTV and its partner manufacturers to swiftly bring products to market, highlighting the efficiency and complementary benefits of brand partnerships, pooling the strengths of various companies to offer superior services to consumers.
Similarly, in July, Xiaomi TV also embraced the "open and win-win" approach, making its PatchWall system freely available to TV manufacturers and releasing a built-in library of over 60,000 legitimate video contents. They expressed a willingness to deepen partnerships with their business allies for mutual benefit.
With the recent strategic adjustments by TV brands like PPTV, Xiaomi, Coocaa, Konka, and Changhong, it’s evident that resource sharing and brand alliances will define the future direction of the smart TV industry. Moving from competitors to collaborators, the formation of a brand matrix will further drive the rapid and organized development of the smart TV sector.
Turning passive content into active offerings is reshaping the TV market landscape. According to the Report on the TV Industry Structure in the First Half of 2017, consumers of color TVs have transitioned to a phase of high-end and quality consumption. In this competitive environment, how to enhance product competitiveness has become a critical issue for all brands.
Therefore, meeting consumer demands, accurately positioning content, and transforming passivity into initiative are key to success. In reality, the true purpose of a TV lies in its content.
As a fresh entrant in Internet TV, PPTV, backed by Suning’s strong support, secured exclusive rights to top-tier sports events like La Liga, Premier League, Super League, AFC, UFC, WWE, and more. It also covers comprehensive broadcasting rights for CBA, snooker, badminton, table tennis, tennis, and others, holding a content value exceeding 10 billion yuan and commanding 90% of sports events, making it China’s most comprehensive sports content platform.
From a model perspective, PPTV is increasingly becoming an Internet content operator. The opening of ten billion worth of content signifies its move beyond the single dimension of a content platform or smart hardware vendor, transitioning into a "content+system+hardware" multi-ecosystem. In terms of hardware strategy, the newly launched PPTV N55 focuses on the mid-to-high-end price range, creating product space for its partners.
This strategy not only fosters strong partnerships but also gathers valuable user feedback to better understand user habits and smart TV demands, aiding system upgrades and improvements for seamless integration of products and systems.
Similarly aligned with PPTV’s strategy is Tencent, which recently invested 300 million yuan in Internet smart TV brand Coolpad to further strengthen large-screen content services.
As Internet content providers and color powerhouses shift from a "one-to-one" relationship to a diversified and cooperative one, the competition in smart TVs returns to its true essence. The era of content-driven dominance will redefine the TV market landscape.
Interactive experiences are elevating consumer engagement, bringing them back to a "God’s perspective." Active selection from passive audiences represents a significant disruption that smart TVs bring to the traditional color TV industry. Hence, while expanding content, enhancing consumer-product communication has become a focal point in designing interactive experiences.
In this regard, brands like LeTV, Youku, iQiyi, and PPTV have made substantial adjustments. Whether through interaction logic or technological innovation, the aim remains to allow consumers to regain control and fully showcase the convenience of smart TVs.
For instance, PPTV’s new Rubic smart TV system provides orderly and diverse content classification to minimize user steps and costs to access content. It also features Super Live, fast P key, smart voice, multi-screen interaction, and more.
From platform to content to hardware, the revolution in the smart TV industry is deepening. With an open attitude acting as a bridge, fostering friendships and partnerships, and ultimately achieving a win-win scenario for content platforms, color TV manufacturers, and consumers, this year has seen numerous transformations. These changes illustrate how innovators like PPTV are steering the smart TV industry toward an era of "open sharing."
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