le-View Super TV has no price advantage

Absrtact: This May, the video network officially released Super TV products. Jia Yue, chairman of the video network, has said that, like Apple, the TV will be internet, and completely subvert the traditional television industry. At the beginning of the video Super TV release, the most exciting is the price. But

This May, the video network officially released Super TV products. Jia Yue, chairman of the video network, has said that, like Apple, the TV will be internet, completely "subversion" of the traditional television industry. At the beginning of the video Super TV release, the most exciting is the price. But its launch for one months, many TV manufacturers have to price, to the music as a "price war", the video Super TV has no price advantage.

Traditional home appliances manufacturers also launched a "public opinion war." Sharp China said it had never cooperated with Le Vision to develop a super TV. The subsequent occurrence of Lenovo "hand" sharp incident, more people feel "encirclement and suppression" meaning.

In the "Encirclement and suppression", the music television's own business model is also questioned. Jia Yue Pavilion has said that music hope that the hardware, with low prices to occupy the market as soon as possible, and then through high-definition video service fees and advertising costs to profit. But analysis refers to the Super TV function is not super, the function is not too much breakthrough, now faced with the loss of price advantage, music depending on the number of sales can still be unknown. In the face of the rapid development of IPTV and local radio and television competition, its high-definition video on-demand charges are also under pressure.

Still, this does not affect the capital's pursuit of this stock. May 7 After the release of the meeting, the music network share price linked to two trading. June 14, in a row for 3 days after the cumulative increase of more than 20%, le video network bucking the trend Rose 7.4%, reported 28.31 Yuan, after the right to be listed since the highest point. According to this price, the market value of Le Net has surpassed the Youku potato, the P/E ratio exceeds hundredfold. Is there a chance or a risk behind the stock price?

May 27, Sharp's statement, let LE video tv into embarrassment. Sharp said it never developed a super TV with Le Vision. In the past few days, the video of the press conference, has shown Sharp is one of its partners. A number of traditional home appliance manufacturers, however, have responded to the low prices claimed by le-Vision. Sharp, Sony, Skyworth and other TV manufacturers have launched a price of more than 7,000 yuan in 60-inch LCD TV.

Television industry later, the music, is encountering a siege. June 5, Lenovo announced the cooperation with sharp Smart TV, sharp side of the music as a "public opinion war", while "holding hands" Lenovo, launched a new smart television. It giant Lenovo, also stood in the "encirclement and suppression" Music of the camp.

By "sharp statement" triggered by the "encirclement and suppression", has let the way to attack the music of the network to turn downward, but the Dragon Boat Festival before and after the 4 trading day, the share price of music network again against the market soared, breaking 28 yuan.

In fact, the "enemy" of the music industry is not only the television manufacturers, there are many video sites, set-top box manufacturers, even film and television production companies.

Whether the success of this chess game and whether it can break through the "encirclement and suppression", ultimately depends on whether the profit model can be innovated successfully. Music is expected to let the hardware, through the later service fees and advertising to make money, but if this model is not successful, music will be reduced by selling TV to earn money in the ordinary hardware manufacturers.

Home Appliance Manufacturers Alliance to launch "price war"

In the one months since the launch of the video Super TV, many competitors reduced the price of 60-inch LCD TVs to more than 7,000 yuan.

The remote control also wants to sell 199 yuan? Recently, in the Music Network Fans forum, a number of users are complaining about the price of video tv details.

Super TV released at the beginning, the most exciting is the price of--60-inch LCD TV X60 price of 6999 yuan, 40-inch LCD TV S40 price of 1999 yuan, and before this, the mainstream price of similar products in 10000 to 12000 yuan.

June 9, the video television released the Price of Super TV, a lot of "fans" then found that the "Super Remote Control" TV is not standard, but to increase the 199 yuan to buy.

There are "fans" calculate a sum, 60-inch Super TV X60 in addition to the price of 6999 yuan, users also need to pay the first year of service fee of 490 yuan, cloud base 299 yuan, Super remote control 199 yuan, the actual price of 7987 yuan.

While fans are complaining about prices, the competition's competitors are cutting prices. Beijing News reporter noted that one months after the introduction of Super TV, many domestic TV brands have launched a similar price of 60-inch LCD TV to expand PK. In Jingdong Mall, Sharp, Skyworth 60-inch LCD TV price has been reduced to 7999 yuan, Sony 60-inch LCD TV price of 7888 yuan.

Under the price offensive of traditional TV makers, the 60-inch TV super television has no advantage.

In the home appliance industry researcher Hong Shibin, this is the traditional household appliance manufacturer to the music view launches "The Encirclement and suppression": "For these manufacturers, may have many products are in the price high, but will certainly take out one or two products, comes with the music to play the price war." ”

Sharp China denies cooperation with LE Vision

Sharp first with the music of the clear relationship, and then "Hand" Lenovo, is considered to be "hit the face of music."

In addition to price competition, traditional home appliances manufacturers also launched a "public opinion war." May 27, Sharp China issued a statement that has never cooperated with Le Vision to develop super TV. After the announcement, some insiders commented that "Sharp played a happy face", "music as a big oolong."

The next day, the music network said that the SDP, with the music as a cooperation, is by Hon Hai (Foxconn) and sharp headquarters jointly financed the formation, and sharp China has no direct relationship, but the music video screen does use sharp technology.

The "Battle of the public opinion" was also interpreted as a traditional TV manufacturer's attack on the music vision. "Super TV" touches the interests of some traditional machine sales companies including Sharp (China), according to the statement.

The subsequent occurrence of Lenovo "hand" sharp incident, more "encirclement and suppression" meaning. Sharp (China), which has just "cleared the relationship" with the music vision, high-profile announced with Lenovo's "intimate cooperation", June 5, Lenovo United Sharp, Beijing East released two of Smart television, the Conference, on the rumors of "Lenovo's acquisition of Sharp Nanjing Factory", Lenovo interviewed by reporters did not deny that, said if the business needs, will consider acquisitions.

For the future of video TV, home appliances industry operators, researchers seem to unify the caliber, the consensus that "not optimistic."

Skyworth spokesman Li Cong to think that the television production of special emphasis on scale, annual sales of 1 million units below are difficult to generate profits.

Tcl spokesperson Liang said that the home appliance industry after years of development, pay special attention to the accumulation of technology, and in the channel and service, only by a single product difficult to make results.

Home Appliance Industry researcher Liu Buzhong is the "seeing the empty person" of the music television, the music sees the press conference since, he bursts several micro-blogs, points out the various questions which the music sees. In an interview with the Beijing News reporter, he said, the color TV industry market pattern is after years of precipitation formation, Samsung do mobile phone to do flat plate are very successful, music, said the traditional manufacturers do not have internet thinking, is too despise opponents.

"Conflict" with know-it-all and radio and television

IPTV, radio and television around the cable TV, also opened High-definition video on-demand function, analysis that music to achieve competitive advantage is not easy.

Music in the production of intelligent television, but also the production of boxes, and this market is a free-for-all, multifaceted.

Has the industry summary, TV box manufacturers are divided into three categories: one is such as music, millet, pplive, such as internet companies, and even Alibaba is also closely plotting Ali box; the second is 7 companies with internet TV licences, such as Zhejiang China launched a small red, Hunan TV launch of Mango box, etc. The third is home appliance companies, it vendors, Skyworth even intends to produce boxes of the division of the listing. Music from the video industry to enter the hardware sector, is undoubtedly from a "Red Sea" into another "Red Sea."

According to the "Platform + terminal + content + Application" of the whole industry chain strategy, le Video network also cooperates with CNTV, trying to build the Internet TV platform-Le video network TV version. This makes the music as a know-it-all, all over the radio and television network companies to become competitors (IPTV, cable TV have paid for high-definition on-demand business).

The purchase of video TV, must pay the first year's annual fee of 490 yuan, but the music television service staff told the Beijing News reporter, this 490 yuan only includes some of the high-definition copyright film TV series, Can not watch TV live. If you need to watch TV properly, connect cable and pay for cable TV service.

490 yuan video on demand service fee, plus two hundred or three hundred yuan cable TV fee, a year's service charge will reach seven hundred or eight hundred yuan. Whether the user is willing to pay for this is still an unknown.

By contrast, in recent years, the development of a fast-forward IPTV business policy is more flexible, users can watch hundreds of TV channels live programs, but also for high-definition video on demand. In marketing, telecom operators tend to pack IPTV into broadband charges, bundled to sell to users, even cheaper than cable TV.

Shanghai Telecom Customer service staff told The Beijing News reporter, the current Shanghai telecom IPTV business is tied to broadband internet, 10M broadband plus IPTV annual fee is 1599 yuan, while the price of a separate processing of 10M broadband services more expensive, for 2160 yuan. Customer service staff say they generally recommend bundled packages to customers.

In addition to IPTV, all over the radio and television cable TV, also opened a high-definition video-on-demand function, the annual fee is also less than 490 yuan. Beijing News reporter inquires that the Peking song China cable HD on-demand annual fee of 336 yuan, while the Guangdong Southern Cable paid on demand is 10 yuan per month, 20 yuan two stalls.

Under such a heavy competition, analysts believe that it is not easy to gain a competitive advantage.

"Whole industry chain" layout enemies

Film and television drama production, liquor, music is called to dig deep customer resources, "squeeze the value of the industrial chain of music."

Le Vision to the upstream development, its music vision has entered the field of film and television drama production, and High-profile signing Zhang Yimou as art director. Jia Yue Pavilion, chairman of the network, said, to strive to let the music in 2013 into the industry in the first three, which makes Huayi Brothers, light media and other film companies, also become a pleasure as competitors.

Lok See even in the liquor, its network wine network was established in December last year, the company said to dig deeply into the customer resources, "squeeze music to see the surplus value of the industrial chain." It is noteworthy that the music video and network Wine network are under the group, and the listed Companies Music network is "brother company."

The reason for such a layout, Jia Yue Pavilion is to create a new profit model-the hardware and software for vertical integration, the first through Low-cost hardware to occupy the market, and then through the collection of content services fees to earn real gold and silver.

In an interview earlier, Jia Yue said he was inspired by the Apple case. Apple's apps are all about its own hardware, from hardware to software to content, to services, to platforms, and perfect integration. If the hardware alone, or the industrial era of thinking, not the internet age of thinking.

In his view, no matter how the horizontal integration, is the addition, only the industrial chain of the real vertical harmony, can be multiplication, or even refers to the effect of several levels, so as to obtain the explosion of growth.

According to his algorithm, if the Super TV plus video box number of users reached 1 million, then a year's service fee is 490 million yuan; If the number of users reached 10 million, the value of TV boot ads can be comparable to provincial TV.

Can the profit model of the music see the breakthrough?

In the industry, the key lies in whether the business model can be truly realized.

Today's music is like a eight claw fish, its tentacles extended to the surrounding industries, a trick careless, that is, the competitor "strangulation" possible.

In the industry, the key lies in whether the business model can be truly realized. But it is no easy job to build an entire ecosystem with the power of pleasure. After all, music is not Apple, Jia Yue Pavilion is not jobs.

First, the number of users is a vital factor in the business model of the music vision. Only the number of users reached 1 million or 10 million, Jia Yue Pavilion through the collection of service fees profit, through the distribution of advertising profitable business model will be possible to achieve; step back, only sales increase, can be diluted TV in production, marketing, services, the huge cost.

But the number of users can be happy to see how big, now still doubt.

An important prerequisite for the formation of Apple's closed ecosystems is the fact that both the ipod and the iphone cause thousands of "fruit powders" to be sought after.

As far as the current video products, Super TV is not "super", in the function is not too many unique place. At the same time, the music television has not listed, has basically lost the price advantage. In this context, it is unlikely that the video TV wants a large scale of goods.

Secondly, music depending on the rate of service charges can be more noble than the unknown. Compared with IPTV and CATV, the signal transmission of the video TV has no special line, and the user experience is restricted by the network speed.

In other words, even if you buy a video, you may not buy a video service. Music TV + song Hua Cable, music TV + Millet box, video tv +IPTV ... These may be the user's choice scheme, the music sees in the High-definition video service has many competitors, the user has the sufficient choice space.

If the business model is not successful, will become a mediocre video site, or a hardware manufacturer, then the listed company over 20 billion yuan market capitalisation, more than 100 times times the price-earnings ratio can be established?

After all, China's biggest video site, Youku, is valued at no more than 20 billion yuan, while Hisense and Skyworth, the home appliance manufacturer that sells tens of millions of televisions a year, is no more than 10 to 20 times times earnings.