Last week, the shared car EZZY declared bankruptcy. In addition to the sharing economy, the development of an Internet TV company seems to have encountered problems. Coincidentally, the founder of this company is also called Fuqiang. CAN Watch TV was founded in 2015 and released its hardware products in May of the same year. It is affiliated to Global Zhida Technology (Beijing) Co., Ltd. and is a brand of smart terminals owned by China International Broadcasting Network. Global Zhida is jointly funded and established by Huawen Media, Dahua Smart, and Guangdong, the state-owned company. However, this Beijing-based Internet TV company, dressed in the "national team", has recently revealed negative news about layoffs, default on suppliers' payments, and even internal management confusion. The reporter called the founder of this company on the matter and paid for the president of Global Zhida. He acknowledged the company’s recent personnel adjustments. However, when the reporter further asked about the proportion of layoffs and other news, he refused the interview with "according to the public relations department's caliber." Afterwards, the Public Relations Department told reporters that the company does have personnel optimization adjustments, but it does not have a strict sense of proportion. In addition, it is still admitting that the payment of the project has been postponed and settled, but both are temporary extensions that are carried out in consultation with the partners. The restructuring of the company is expected to be announced in December this year. An advertising company that is still looking to sign on Sina Technology revealed that although the contract has not yet expired, but a few months ago there is no need for publicity and promotion. Coincidentally, the latest news from the official website is also the deadline for new product releases in April this year. What is certain is that the marketing in the second half of the year is still much less than last year and even the first half. At the beginning of November, each merchant was preparing for the double 11 moment, and he still chose to play conservatively. In fact, this is not a case, it can be seen as a microcosm of the entire Internet TV. 2015 was the most glamorous year for Internet TV companies. With the prices of TV panels and other raw materials skyrocketing at the end of 2016, Internet brands that took the “small profits, quick turnover, and profitable content†model also faltered. “Seeing him from Zhulou†The Internet industry has set foot in the field of television manufacturing, beginning with Internet TV boxes. Compared with the set-top boxes of traditional cable TV providers, Internet boxes can acquire resources on the Internet and the amount of content has gained a quantum leap. LeTV, which has purchased a large number of copyrights, has also begun to expand the content playback scene and officially launched the first generation of super TV in May. Xiaomi followed closely and also launched TV products in September of the same year, which also opened the curtain for Internet TV. Domestic TV industry sales since 2013 (Data from Ovid Cloud) Domestic TV industry sales from 2013 to date (Data from Ovid Cloud Network) In 2014, it was an optimistic year for the color TV industry. According to data from Ovid Cloud Network, domestic TV sales in 2014 were 46.61 million units, down 5.6% year-on-year, and the TV industry saw negative growth for the first time in 30 years. This year, TCL chairman Li Dongsheng once lamented: In 2014, the color TV industry market was down 7% year-on-year. From the beginning of color TV production to the present, the Chinese market has never been so severely dropped. The inflection point of television manufacturing has already arrived. Li Dongsheng, chairman of TCL Group, once sighed: In 2014, the color TV industry market dropped by 7% year-on-year. From the beginning of color TV production to the present, the Chinese market has never been so badly dropped, and the inflection point of television manufacturing has arrived. There are various factors affecting TV sales in 2014, such as policy supervision and real estate slow-moving, among which the most important one is the rise of online video industry and the impact of multiple usage scenarios such as mobile phones and flat-panels. In 2014, the combined Youku Tudou scored a net income of 4 billion yuan, an increase of 33% over the same period in FY2013. Iqiyi and Tencent videos have also begun to increase the investment in home-made dramas and copyrights. According to data from iResearch, in 2014, the market size in the third quarter was close to 7 billion yuan, a 9.3% increase from the previous quarter and an increase of 83.2% year-on-year. The Internet TV also took on the fast-growing train of online video. Ovid data shows that although the environment of the color TV industry is in a downward trend, the market share of Internet brand TV has surged from 1% in 2013 to 6%, and LeTV has also squeezed into the top ten in the domestic market share this year. LeTV's marketing has brought new games to the less-active TV market. Rapidly expand the market with relatively low profit margins, and then try to make profit on content operations. This mode of operation has been studied by major traditional manufacturers and startup companies. Since then, Internet TV ushered in the outbreak. Internet Brand TV Market Share from 2013 to 2016 From 2013 to 2016, the market share of Internet brand televisions Ovid data shows that in 2015 Internet TV market share exceeded 10%, and in 2016 it soared to 18.9%. As a practitioner, the most crazy time in impressions was the release of television brands every week. Even a few brands released products at the same time in a week. LeTV even had new products for the month and month. However, the landscape did not last long. Japan, South Korea, and China Taiwan suffered earthquakes. Under the dual effects of natural disasters and huge market demand, the prices of display panels and semiconductor upstream have soared rapidly. The entire television industry experienced a revival in 2015 and 2016. Make a sharp turn again. Shuffle the Internet TV can get out of the quagmire Recently, news of retirement and resignation, Liang Lejun, who built Super TV, has thrown an open letter at the beginning of the year and put forward four judgments on the macro environment of the market this year: First, in the past few years, a large number of new Internet brands have entered the smart TV market that has been lacking of effective growth in various forms and overdrawn the sales volume in the next few years. Second, the entire TV industry is facing rising raw material costs, resulting in overall TV products. Sustained price rises have inhibited some TV consumer demand; Third, China's real estate market will continue to adjust for a period of time. Television product sales will lack the effective pull of the real estate industry. Fourth, the consumption structure will upgrade to mid- to high-end users. What is needed is no longer a low-priced product but a quality product. Subsequently, the declining TV sales also confirmed Liang Jun's judgment. According to data from Ove Cloud Network, in the first quarter of 2017, the sales volume of the color TV industry fell by 5.8% year-on-year and fell by 9.5% year-on-year in the second quarter. The same figure in the third quarter even fell to 12.9%. The WitsView data shows that in April of this year, when the panel price peaked, the price of each dimension increased by more than 25% from the price in July last year. The price of small-sized panels was particularly noticeable. The average price of 32-inch LCD panels rose by nearly 40%. The most indispensable is the Internet TV, which focuses on low prices and strives to expand the market. In addition to watching the market, LeTV sold only 1.5 million units in the first three quarters of this year due to the collapse of the Empire. This is a far cry from the 6 million in last year. Severely resembling LeTV's strategic layout, Severe TV has suffered serious losses, divest its listed entities, and made difficult financing. The public has been burdened with the pressure of public opinion on "the next LeTV." The small whale that once invested in Konka and sponsored "China's New Song" has also adopted a relatively conservative operation strategy this year. The only millet TV that has grown this year, the global market share has only increased by 0.4% (Ove Cloud Network data), and it is not enough to pick up the banner of Internet brands. So apart from the cost increase caused by natural disasters, where is the Internet TV brand lost? The weak supply chain and the lack of core technology are the main reasons. Taking a look at Samsung, LG and TCL, the top three global TV shipments this year, are supported by Samsung Panel, LG Display and China Star Optronics. This year's sharp rebound in sharp momentum, there are many lines behind the credit. The lack of display technology makes Internet brands unable to compete with traditional brands in high-end categories. For example, Sony, who has played a beautiful stand, has not achieved the production capacity of LCD panels, but it has reached an unmatched level in the optimization of display effects. In the television industry, the concept of independent control of backlight partitions was first proposed, and similar products had more than one year earlier than other brands. In addition, Samsung’s R&D on quantum dot technology and LG's OLED panel is also an industry-leading level. Internet companies caught up with the wave of users switching from non-smart TVs to smart TVs, but after solving the problem of “going out of nothing,†their own capabilities were not enough to allow these brands to catch up with the “every good†development path. Internet TV experienced a period of time from prosperity to decline, but in fact it is not meaningless farce. Its inspiration to the industry is not limited to Skyworth, Hisense, and TCL respectively launching the Internet sub-brand Coolo, VIDAA, and Thunderbird. It also allows traditional manufacturing to understand that manufacturing television is not just about assembling hardware, software, and content ecology. It also means extraordinary. At the same time, however, when traditional enterprises started to build content ecosystems, and content provision was similar, it was inevitable that Internet TV brands would not be able to take advantage. Recently, WitsView announced the trend of TV panel prices in October, the prices of large-size panels have stabilized, and the small size began to fall. Millet-based manufacturers also recently announced the price reduction of 32-inch millet TV 4A to less than 1,000 yuan. However, the industry generally believes that low-cost strategies are accompanied by low profits. Although smart TVs can be subsidized through software server revenues, the current domestic consumers' willingness to pay for resources as a whole is too low to produce sufficient benefits. From the standpoint of TV product pricing alone, today's smart TVs are not as low as their peers last year. According to the 32-inch product that Xiaomi TV had just cut its price, the price of 999 yuan may be barely the price of a 40-inch TV when the price war was fierce last year. Currently, the price of 43-inch TV is generally around 2,000 yuan, which is still higher than The same period last year was higher. In addition, the price war has also overdrawn the purchasing power of consumers. Ovid Cloud Network data monitoring showed that during the 11th period, the total sales volume of the domestic color TV market decreased by 15.6% year-on-year. The first major holiday promotion after the price cut failed to reverse the current decline in the smart TV market. Under the background of consumption upgrading, the effectiveness of price war can only be smaller and smaller. The next transformation of the TV industry may have to wait until artificial intelligence and smart homes really fall.