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 ideas have transitioned from theoretical discussions to real-world applications. The integration of the internet into television products has not only revitalized an industry once considered a "sunset sector" but also sparked fierce brand competition, creating new opportunities and challenges in the market.
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**A 6-Year Turnaround: Internet TV Enters the Traditional Market**
According to recent data, there are now 20 Internet TV brands in the market, matching the total number of traditional TV manufacturers. With rich video libraries and interactive experiences that go beyond passive viewing, Internet TVs have gained significant popularity among consumers.
Moreover, according to CCTV financial reports and research from 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, while traditional TVs made up just 13.01%. In contrast, in 2011, Internet TVs represented about 10% of total sales, with traditional TVs dominating at 90%. This dramatic shift over six years shows how quickly the landscape has changed.
**From Cold War to New Growth: Internet TV’s Rise**
After the initial phase of resistance, Internet TV can be seen as “a new tree blooming with new flowers.†According to statistics, in the first half of 2016, the market share of Internet TV brands reached 16%, up by 7.9% compared to the previous year. The industry includes established players like Changhong, Skyworth, TCL, and Haier, as well as internet companies such as LeTV, Xiaomi, and Xiaowei. Additionally, operators like Pengpeng, Gehua Cable, and PPTV have also entered the space. International giants like Samsung, Sony, and Philips are eyeing the Chinese market, making the competition in the Internet TV sector intense and dynamic.
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**Cable Boxes Fade, Smart TVs Rise**
With the rapid spread of internet technology, smart TVs have replaced older color TVs. The adoption rate of smart TVs was already at 84.5% in 2015, and by 2016, sales exceeded 50 million units, with a penetration rate above 95%. This year, it's expected that smart TV sales will reach nearly 70 million units.
As national "triple play" initiatives expand and network infrastructure improves, smart TVs are increasingly replacing cable set-top boxes. Most households in China now own a smart TV, and the market in first- and second-tier cities is nearing saturation, with expansion into third-tier cities and rural areas.
**Artificial Intelligence Takes Center Stage**
Several TV manufacturers have introduced AI-powered models, such as Changhong CHiQ TV Q5N, Xiaomi TV 4, TCI Thunderbird, Mini Whale Smart Voice TV 2.0, and others. At least ten manufacturers have launched AI-based TVs, signaling a major shift in the industry.
Mei Xiaochun, director of the China Wisdom Family Research Center, notes that AI in home appliances is still in its early stages. Many AI devices are more concept than reality. However, the smart appliance industry is entering a phase of large-scale commercial application, offering great potential for growth.
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**Content Becomes the New Battlefield**
With the rise of triple-play services, traditional TV manufacturers have strong advantages in hardware, R&D, and distribution. But since 2017, domestic smart TV production has started to decline. This has forced manufacturers to adopt a model focused on operating systems and content services, expanding their profit models.
Cooperation between traditional TV providers and content platforms has become common, such as TCL and LeTV, Konka and Microwhales, Hisense and iQiyi, and Haier and Alibaba. These partnerships extend beyond content to include apps and marketing strategies.
**The Future of AI in Smart TVs**
While Internet TV may not become as essential as smartphones, it is becoming a key part of the upgraded consumer experience. As hardware becomes more standardized, high-quality content becomes the differentiator. Traditional TV content comes from satellites and cable providers, while Internet TV focuses on original content, e-sports, fitness, VR, and more.
With voice control, AI algorithms, and machine learning, personalized content delivery is becoming more user-friendly. These innovations are transforming one-way broadcasting into interactive experiences, enriching the home entertainment ecosystem.
**Smart TV Strategy: More Stable Than Radical**
Although Internet TV may not yet be the backbone of the commercial world, it is a growing economic driver. For manufacturers, content is the entry point, and innovative additions offer new experiences, increasing user retention.
As the industry matures, some companies may withdraw or adjust strategies. However, those focusing on technology and user experience will likely lead the way. Whether through "Hai Na Bai Chuan" or "One Alone," innovation and user satisfaction will be the keys to success.
**The Turning Point of the Internet TV Industry**
The industry is at a critical stage. Some startups may exit, while others will re-strategize. Policy changes and market fatigue are inevitable, but tech-driven companies will dominate. Like Apple, they will redefine the industry, meet diverse needs, and lead the next era of development.
This is the path to becoming the king in a long-term battle.