Can Sharp + Ali Realize the Counterattack on Internet TV?

Internet TV arena polarization

Internet TV manufacturers and traditional home appliance manufacturers in the Internet TV battle field have different ways of playing on Internet TV, showing a polarization trend. The former emphasizes paying content backwards, while the latter focuses on hardware configuration and content free of charge.

Specifically, the common practice of Internet companies in promoting Internet TV is the "hardware free" theory. Content payment is the king's way, and it intends to fill the hardware free of losses through backward earnings. However, one problem with this type of gameplay is that the backward revenue itself is limited by the user's power-on duration and operating rate. For example, some Internet companies have launched a number of Internet TV products. Although the number of externally announced sales is considerable, the actual number of startups is almost half. Not to share. This makes the intention of the Internet companies to pursue backward income, so that the backward revenue can not fill the cost of hardware costs.

Of course, one cannot help but admit that Internet companies have aggressively entered the Internet TV market and have caused some pressure on traditional home appliance manufacturers. The reason why this is so is that traditional home appliance manufacturers lack technology innovation, concept innovation and sales channel innovation in the process of R&D and promotion of Internet TV. In addition, the more important point is that traditional home appliance manufacturers are generally weak in the supply chain resource integration such as content resources, which makes most of the traditional home appliance manufacturers launched Internet TV is difficult to make a name. For example, some traditional TV manufacturers advocate their own ULED display technology, it is difficult to produce "quality change" effect in practical applications. However, the direction of R&D and promotion strategies of traditional TV manufacturers is still the same. Both are gradually shifting to the production of smart TVs as the core, in order to obtain more profit through the segmentation of the Internet TV market.

Whether it is "hardware free" or "free content", it is difficult to shake up the cake of Internet TV, because there are both the problem of backward revenue and the problem of integration of supply chain resources. If these two problems are not solved, then It's hard to really play Internet TV.

Internet TV is a market for collaborative value sharing

According to the analysis of the “2015 China Internet TV Development Report” released by Nielsen, the “internet box”, an Internet TV integrated machine with built-in on-demand video application, is the current mainstream of consumption. The latest analysis from iResearch also pointed out that Internet TV users can choose to watch content on TV more freely.

And without time constraints, began to bring Internet usage habits back to the TV. The hardware advantage of TV is also becoming more and more obvious as the content is continuously optimized. Users can choose a larger screen and a better audio-visual experience. It can thus be seen that the needs of ordinary families have required Internet TV to have both "soft" and "hard" overall strength. How to achieve true "soft and hard consideration" has also become the key to competing for Internet TV access.

(Source: iResearch Consulting Institute Autonomous Research and Drawing)

Judging from the current market conditions, the hardware of traditional TV manufacturers still dominates the market. In the Internet TV industry, the competition between traditional TV manufacturers and Internet companies is rather abnormal, and cooperation is the more likely direction of development. The advantages of effective service, content, and terminal production are complementary. As a result, more manufacturers with different polarisations were created, such as the deep cooperation between Sharp and Ali, the father of LCD, and broke the barrier of homogenization of Internet TV.

"Big sales data" combined with "production big data", occupying the high-market market

In the face of the buoyant mainland market, Foxconn has brought Sharp a fresh "Internet" positioning. As early as October 13 of this year, at the Yunnan Yunqi conference in 2016, Gou said that New Sharp will be a brand new brand to realize “+Internet”. This time from the living room, cooperation with Ali will start and it will open up to smart homes. The door. From the brand-new combination of Foxconn, the global "Smart Factory" and Sharp, the "Father of Liquid Crystal," deep customization with Ali YunOS for TV was realized in just 2 months. This cannot but be said to be a strategic deployment of both parties.

Soft and hard combination

In the just-concluded “Double 11′′ period, Sharp’s large-screen Internet TV participated in the event and leveraged Alibaba’s advantages in Internet technology, consumer big data, and cloud computing to optimize the interactive experience; and through the cooperation with Youku, Tudou, and Ali. Content providers such as entertainment, etc. work closely together to enrich content.

"Hard Strength": Sharp 70-inch, 60-inch Internet TV, equipped with a new generation of magic core 10 nuclear engine, enough for consumers to feel the beauty of the desktop computer processor 4K video viewing; using wide color LED light emitting phosphor, panel The aperture ratio is further increased by 20%, with 10 core chips and comparable to Harman Kardon professional audio equipment.

"Soft power": Sharp 70-inch, 60-inch Internet TV adopts Ali YunOS for TV operating system, and collects Ali's Youku potato film and video resources. It has a hit episode of up to 30000+hours, spy war, Fantasy Mary Soe, Anglo American. Burning dramas, network self-made theaters and other movies 9800+ hours. Global, Warner, Lions Gate, Paramount, Sony and other major movie groups are all partners.

With the strategy of combining hardware and software, Sharp and Ali's cooperation, the imagination space has only just been opened. Next, the two sides are likely to continue to exert their power in occupying the commanding heights of the big IP.

Market recognition

According to the data, during the "Double 11" period, Sharp launched a new 70-inch and 60-inch Internet TV with YunOS for TV operating system, setting a new sales record: Sharp TV's omnichannel sales of 620 million yuan; 430 million; Sharp's official flagship store sales exceeded 150 million; 70 "big screen king" single product sales of more than 10,000 sales of more than 135 million. Obtained Tmall double eleven large-size TV sales laurel, entered the top three Tmall black appliance rankings, Suning Tesco black power turnover first; created a shop for 1.5 months, sales break through billions of speed records. It can be said that in the era of large-screen Internet, Sharp, the “father of LCD”, is advancing.

Comprehensive strength is the correct posture to open Internet TV

The comprehensive strength mentioned here is not just a single aspect of innovation or breakthrough, but is aimed at the actual situation of the current Internet TV market and carries out all-round innovation and beyond. Looking around the market, it has the ability to create the overall strength of the Internet, non-Sharp and Ali Mo. Sharp is the father of LCD and holds the leading position in hardware technology, R&D and manufacturing. Ali owns the first sales channels in China and rich in entertainment content resources.

Faced with the melee of the Internet TV industry, the answer given by Terry Goo is: Stable supplier management and effective organization and coordination are only the first steps. Really realize the combination of hardware and software of content and hardware, and the combination of virtual reality of cloud and production of big data. The construction of a private garden is a magic weapon to compete for the "parlor economy" in China.

It can thus be seen that the reason why Gou chose to cooperate with Sharp and Alibaba is to value Ali’s all-round resources. This all-round advantage is beyond the reach of ordinary Internet TV manufacturers and traditional home appliance manufacturers. This kind of "1+1>2" comprehensive strength, especially in the combination of soft and hard, through the family entrance of the living room, bedroom, etc., to enable smart TV hardware consumers to convert into sustainable operations users, is to open the Internet TV The correct posture.

According to the research report of Zhiyan Consultation, with the shift in the market value of traditional television advertising and viewing, and the rapid maturation of some emerging industries, the Internet TV industry chain is about to usher in the transfer and release of nearly 150 billion yuan in market value. The cooperation between Alibaba and Sharp is based on the combined strengths of the dual-sword combination of softness and hardness, and its realization of counter-attacks against Internet TV is just around the corner.

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