From this year's major manufacturers to release the new TV to see, there is intelligent guidance and technology-oriented. Technology-oriented basic is we and Hisense, it is difficult to determine who is more powerful.
Some people say that we skyworth conservative, in fact, we are not conservative, because we have been with the Internet enterprises, electrical business enterprises to learn and promote.
As early as 2006 we set up a cool company, and then we cooperated with Ali released Cool TV, which in the industry is the earliest to the Internet television transformation. In terms of content, we have a basic co-operation with all licensed content providers, but in the process of transformation, there are two aspects that we should stick to.
The first is not to break the law. SARFT has 181th documents, terminal products have to connect with the network operators related management systems, databases, that is, whether it is intelligent television or set-top box TV accessory products, if you want to access Internet TV, must be cooperation with licensees.
Second, I think the internet to operate the spirit of color TV, we are still in the process of exploration. The current business model is not very mature, the understanding of the spirit of the Internet are also different. How to turn it into a business model, really do front-end or back-end charges, generate cash flow, which is still in the process of exploration.
I think the enterprise must have a budget first, and then in the constant trial and error process to find a good business model, frankly speaking is how to generate cash flow.
TV is not like software products, its sales volume is large enough after the physical cost is basically not, only some development costs. So I personally think that software products are easier to do free, and hardware products it has a physical cost, it to rely on the back-end or front-end charges generate cash flow to withstand this part of the cost, if not withstand this cost will not be sustainable delivery basis.
We're different from an emerging enterprise, Skyworth has nearly 40,000 employees, the large troop forward can not turn sharp corners, to turn the Big Bend, unlike an emerging internet companies, one is the new play: first there is no baggage; the second is constant capital financing, allowing it to lose in the last decade or five years, Cash flow is maintained by constant capital investment, and the huge industrial risk is transferred to the capital side.
We have also been exploring the front-end charges we try to go straight to Hollywood, back-end charges We are exploring with all the content providers, that is, advertising fees. But the most important prerequisite for advertising charges is the number of active users. Now, whether it's a smart TV or a cloud TV, it's not very optimistic. Consumers buy when directed to the Internet TV to buy, but after buying back are watching live, this is a very frustrating reality.
How to get users to use these Internet features into the daily active user number is the biggest problem at the moment. I personally think that no 5 million households do not have to talk about this front-end and back-end charges, which is a basic base, otherwise who would like to advertise here?
Since last year, for the Internet, at least in the mentality of a certain bubble, what meaning? Is too much to say. The beginning is very magical, like what a touch on the internet on the spirit, PE multiples immediately increase, the stock horse rose, but I believe that in 2014 and 2015 we will be more rational, we wait and see.