From the top down, re-find TCL's positioning in the OTT industry

After a series of series of boxing hits by the General Administration of Radio, Film and Television, it has been several months. In the face of SARFT's policy supervision, TV manufacturers have begun to find new ways to reposition their strategic goals. As a well-known TV manufacturer in China, how does TCL position itself? What are the difficulties faced by traditional manufacturers? On November 11th, Rita, deputy general manager of TCL Multimedia Internet Division, visited the live studio of the Asia-Pacific OTT Summit 2014 and conducted an in-depth analysis of the development path of his own OTT as a TV terminal manufacturer.
  

Pictured: Rita, Deputy General Manager, TCL Multimedia Internet Division

The equipment is the entrance Internet TV provides the hardware manufacturer with the opportunity

According to Rita, TCL started as hardware and was a hardware provider. In the past, when users bought TV back, they actually ordered the services of cable operators and broadcasters. Now that users buy OTT Internet TV, they can get TV services when they turn on the TV. This just gives hardware manufacturers like TCL an opportunity. The equipment is Entrance, as long as the equipment is equivalent to get TV service.

Rita said that TCL’s layout in the Internet industry over the past few years is to extend from the hardware, to do a content and software aggregation platform, and then to provide more OTT TV services down to end users. The positioning of TCL is starting from the equipment, doing software services upwards, and doing more channel services downwards, and then finding the next stage in the OTT industry through software integration positioning.

Facing Challenges TCL Active Adjustment Strategy

With the development of Internet companies, some terminal manufacturers and traditional manufacturers have been affected by a relatively large impact, especially when they move closer to the Internet and cross OTTs, they will face many difficulties.

Rita said that this difficulty mainly comes from several aspects, one from the inside and one from the outside. The internal challenge is to transform from a pure hardware manufacturer to a vendor that provides services. This will be a big adjustment to the team's capabilities, experience, and organizational structure. In the past, TVs were mainly sold to users through channels, but now they are mainly sales users, and they need to continue to provide services to users. This whole process is related to the value chain from the product to the sales to the service. All need to change. However, this change has a huge impact on TV manufacturers. The conflict between the old and new value chains is most obvious.

Another challenge from the outside is cross-border competition. In the past, TVs produced by the six major TV manufacturers were provided to users. The entire industry was very stable. In the new era of OTT, various cross-border competitions have emerged. It is a cross-border competition from the Internet. Many manufacturers hope to enter this industry, grab TV terminals, and rob TV entrances, hoping to provide online home users with online marketing, fan management, and user operations. A new generation of user experience.

Based on this, TCL has also made a relatively large organizational and strategic adjustment, and hopes that through the strategic and organizational adjustments, a new generation of home users will continue to purchase TCL's terminal equipment, including smart TVs and newly introduced OTT set-top boxes. For smart TVs at home that do not want to upgrade iterations, TCL also has OTT boxes for users to choose.

Manageable and controllable deep integration and cooperation between TCL and licensees

According to Rita, there is a very large element in the domestic ecology that TV services must be managed and controlled. TCL's many integrated work and cooperation are actually based on deep integration with the licensees.

In terms of external cooperation, under the controllable and controllable technology, TCL actively cooperates with the licensees, including Galaxy Iqiyi and Hunan Mango TV. From the disclosure of the content to the operation of the content, the TCL is fully manageable and controllable. Integration and support. In the application of non-video products, because of spawning a portal-like game, living, education, and other APP store applications, TCL Multimedia mainly cooperates with service companies such as Huannet Technology to integrate and import applications.

“TCL also involves the establishment of vertical portals, such as the TCL game ecosystem that was announced this year, that is, playing games with its important content and platform partners, and self-dominated and then deeply involved. In addition, TCL It will also launch collaborations with third parties, including lifestyles, education, and some interesting music or karaoke applications,” said Rita.

How to make application partners more willing to cooperate? “Based on a few foundations, the first basis is to standardize the terminal and then provide a good operational platform to third parties. Then I think this case will have something like TCL wants to open a shopping mall. We first took care of all the water pipe stores in the mall, and then we let our partners get in. The video and license partners were our flagship stores. They used them to open flagship stores and run their customers among them. Then these users are also our users, and then under this video flagship store, in fact, we have some other vertical applications, some of which we operate ourselves, some of which are operated by our partners. Based on such a win-win situation, we can each find our own position," Rita said.

4K itself has real user needs

TV terminal manufacturers first put forward the 4K concept. As TCL, it is a habit to use a large number of end users. Is the future of the TV 4K terminal a focal point? What are the actions of TCL in the construction of the platform?

According to Rita, 4K is actually a technology first, and it is a gimmick that the manufacturer originally came up with. The introduction of 4K ultra-high-definition (HD) specifications on TV screens is in fact very popular in China for the purchase of mid- to high-end TV users, and a large number of users already have 4K TVs at home. As more and more content, including a video content such as TV stations and streaming media, slowly turns to 4K, it will play a very substantial role in helping the entire 4K market, which means that users will buy it. The 4K TV at home finally has enough content.

In Rita's view, the implementation of the so-called technical specifications into a practical specification, the whole thing will have a very big help to the entire industry, that is 4K screen plus 4K content such a point.

In the future how will this 4K go, 4K itself has real user needs, users will not refuse to be more beautiful, higher-definition video content, everyone's eyes will be bad, see accustomed to the mobile phone screen, you want your home TV screen is also very beautiful high-definition content, and that 4K content actually has such a potential, is to provide a very high-definition video content.

Rita said that under real user needs, as long as the 4K content continues to emerge in the future, while the manufacturers themselves in the 4K product, more speed to provide more affordable, entry-level 4K products, then the future will produce 4K technology TV will More and more, at the same time, 4K TVs will be available at a cheaper price. By then, more and more 4K terminals will also appear at home.

Rita believes that this cycle of 4K is actually positive. It just means that because of missed content transformation, including the very high transmission cost and production cost of 4K content, and the lack of a reasonable business model in the entire industry chain, this determines The speed at which this piece is pushed down is a key. That is to say, a very high-definition 4K content is produced. Is the user willing to buy it? Is there enough advertising value? Is there a way to support the business model? If so, then there will be more and more content vendors investing in it. The more content companies invest in, the more 4K content will be seen by users. As a manufacturer, they will be very happy, because as a manufacturer, they can continue to provide better and more advanced terminal equipment to themselves. User.

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