Cable TV set-top box will be eliminated, smart TV suddenly rises
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**Introduction:**
Television has evolved far beyond being just a device for watching videos. It has transformed into a comprehensive entertainment hub, becoming the central piece of the living room economy. With the rise of concepts like "Internet Plus" and "Big Data," these once-abstract ideas have now become tangible realities. The integration of the internet into television products has not only revitalized an industry once considered a sunset sector but also sparked intense brand competition that is reshaping the market.
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**A Remarkable Shift in Six Years: Internet TV Breaks Into Traditional Markets**
Today, there are over 20 Internet TV brands in the market—matching the total number of traditional TV brands. With rich content and interactive experiences that go beyond passive viewing, Internet TVs are gaining more popularity among consumers. According to data from CCTV and China Merchants Securities, from January to May this year, the total TV sales nationwide reached 20.63 million units, with Internet TVs accounting for 86.99% of the market. In contrast, in 2011, Internet TVs made up only about 10%, while traditional TVs dominated at 90%. This dramatic shift shows how quickly the market has changed in just six years.
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**The Rise of Smart TVs and the Decline of Cable Boxes**
With the rapid spread of internet technology, smart TVs have replaced older models at an alarming rate. By 2015, smart TV penetration had reached 84.5%, and by 2016, sales surpassed 50 million units, with a penetration rate exceeding 95%. Experts predict that smart TV sales will approach 70 million units this year. As national "triple play" initiatives and network infrastructure continue to develop, smart TVs are gradually replacing cable set-top boxes. Most households in China now own smart TVs, and the market is expanding from first and second-tier cities into third-tier areas and rural regions.
**Artificial Intelligence: A New Era for Smart TVs**
Several manufacturers have introduced AI-powered smart TVs, such as Changhong’s CHiQ Q5N, Xiaomi’s TV 4, TCL’s Thunderbird, and others. These devices use AI for voice control, personalized recommendations, and enhanced user interaction. While AI applications in home appliances are still in their early stages, they are beginning to reshape the smart TV landscape. Experts believe that the industry is entering a phase of large-scale commercialization, where innovation and user experience will be key differentiators.
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**Content Becomes the New Battleground**
As hardware becomes increasingly homogenized, content has emerged as the main differentiator in the market. Traditional TV content comes from satellite and paid cable services, while Internet TVs focus on online streaming and exclusive content. Companies like LeTV have leveraged original programming, such as “Prince of the Prince†and “Fantasy City,†to stand out. Additionally, new forms of entertainment—like e-sports, fitness, karaoke, education, and VR—are creating fresh opportunities for engagement.
**Smarter TV, More Stable Growth**
Although Internet TVs may not yet be as essential as smartphones, they are becoming a key part of the upgraded consumer lifestyle. As the industry matures, companies are shifting from hardware-centric strategies to models that combine operating systems, hardware, and content. This evolution is leading to more diversified revenue streams and stronger user retention. The future of the industry lies in innovation, user experience, and the ability to deliver unique value through content and technology.
**Conclusion**
The Internet TV industry is at a critical turning point. While challenges like market saturation and policy changes remain, the winners will be those who can balance innovation with stability. As the market continues to evolve, the companies that embrace AI, content creation, and user-centric design will lead the next wave of growth. The future of smart TVs is not just about technology—it's about transforming the way we live and interact in our homes.