At the end of 2016, the data released by the Boston Consulting Group (BCG) showed that the revenue of the global Over The Top (TV) video category increased to US$25 billion in 2016. According to BCG, although OTT TV only accounts for 5% of the global industry, its annual growth has exceeded 20%, and its market share has started to rise above traditional television. OTT refers to that innovative enterprises bypass traditional channels and provide users with various application services through the Internet. Typical OTT services include Internet TV and Apple App Store. Some domestic consulting agencies also refer to Internet TV as OTT TV. 
Even further than traditional television, Internet TV users leave data such as identity features, interest preferences, and behavioral trajectories when watching TV. This provides data support for Internet TV operators when they push advertisements.
In 2013, the State Council issued the "Broadband China" strategy implementation plan and deployed the broadband development goals and paths for the next eight years, which means that the "broadband strategy" has risen from departmental action to national strategy.
With the help of the government, Internet TV, including IPTV and OTT TV, has been rapidly popularized in China. According to data from consulting agency Avi Cloud Network (AVC), as of December 2016, according to the calculation of Internet TV activation, the population of Internet TV in China was 311 million. “Traditional television has become a sunset industry, but there are also many people watching it. China has 45 million TVs sold each year. This number is second only to mobile phones,†said Xiaochuan TV CEO Wang Chuan.
A recent global video research report released by an online video market research agency in the United States also confirms this view: In watching online video equipment, watching 5 minutes of video, 55% of users choose to use a smart phone to watch, 20 minutes Within the video, users usually use smart phones, tablets or PCs to watch; and the most noteworthy is that, over 20 minutes of video content, users prefer to use the TV screen to watch, accounting for 92%. The main position of short video is mobile internet. The main position of the long video is still the core of the home use scene—TV.
Fight for cake "It's all coming"
Faced with this situation, from video sites to traditional television stations, from television manufacturers to telecom operators, are competing for food and television.
In July 2013, the first generation of LeTV was born on the video website LeTV. In the same year, Xiaomi Technology, the main player in the mobile phone industry, also released the first millet TV.
In July 2015, the company’s micro whale television was established. Its main business involves the integration of Internet TV hardware and content.
In February 2017, mango TV with the background of the radio and television team and Gome, Skyworth, China Everbright Optimisation Fund and other four companies established Love Mango TV, and strongly joined the Internet TV.
In March 2017, Hisense Television announced cooperation with Netflix to operate Internet TV in the United States.
In June 2017, the latest "predators" player entered the market - China Mobile's Mi Qi Co., Ltd. and Konka launched "Microphone", covering the current mainstream 32-inch curved screen, 43-inch and 55-inch 4K screen Three kinds. One 32-inch price of 1999 yuan, 55-inch price of 3999 yuan. Compared with similar products in the market, this price is very attractive because China Mobile will provide very competitive subsidies for broadband annual fees and content.
New players, such as the Internet background, broadcasting and television background, and operators' background, are constantly entering, completely changing the inherent pattern of the TV industry. "Internet TV has changed the traditional TV manufacturers to rely solely on hardware profit models, but to operate as a user." Li Wei, general manager of Ovi cloud network home Internet big data division, said, "but in the past period of time, traditional TV users are facing With the ageing trend, Internet companies have seized this opportunity to enter the game."
After more than three years of development, the user groups of Internet TV have indeed been developing in a younger direction. According to the “China Audiovisual New Media Development Report†issued by the Development Research Center of the State Press, Publication, Radio Film and Television in 2013, the TV operating rate in Beijing has dropped from 70% to 30% in three years. Consumers over 40 years of age have become the mainstream of traditional television viewing. The age structure of the crowd and TV viewing population presents an “ageing†trend. Media 360's TV Live Subscriber Analysis Report for the OTT Smart TV Industry 2016 released by Media 360 shows that the audience aged between 25 and 44 is 75%, according to the definition of IMI Market Information Research 2012: “25 to 44†The age group is the backbone of a society."
Once Internet TV has a middle-class consumer class, the business value dimension that the group can tap is enriched. The user orders one of them, and Wang Chuan, the CEO of Xiaomi TV, has summarized it as a “Tipping Modeâ€. "It is almost impossible to charge Internet users in the past few years. In recent years, the payment habits are being formed, or they can be purchased as members or a single drama broadcast." Wang Chuan said. According to LeTV, 13% of LeTV's audience currently watch live TV, and about 58% choose Internet TV content.
In addition to on-demand, the potential of television advertising is also valued by Internet TV. According to data provided by Zenith, in 2015, the share of television advertising worldwide accounted for 36.9%, the share of computers was 19.5%, and the advertising share of mobile phones was 10.4%. Zenith predicts that by 2018, the share of advertising, television, computer and mobile phones in the world will be 33.7%, 16% and 22.4% respectively. Although the scale has been reduced, TV advertising remains the biggest cake because of its large base and good results.
"Although the value of TV advertising has been declining in increments, the stock is still very large." Li Wei explained: "Traditional television as a mass media, through the output of high-quality content to increase ratings, but also use high ratings to attract brands to advertise. What is in practice is the 'secondary sales theory' of the media. At the same time, according to the 2016 Iqiyi United Group of Companies and Owe Cloud Network released the 2016 White Paper on the Development of China's Internet Television Ecological Chain, consumers’ trust in television advertising has been achieved. 54% is the first of all channels.
In the eyes of Gome President Wang Junzhou, Internet TV represents the future of the television industry. Internet TV is increasingly favored by young users because of its content advantages and interactive advantages. This is also a source of strong confidence for Gome to invest in Internet TV and become the largest shareholder of Love Mango TV.
At present, OTT TV has already broken through the scope of home television. From the "seven-screen oneness" in which content is king to smart homes with application scenarios as the core, OTT TV is redefining the value of living room screens. In the future, OTT TV is expected to transform traditional TV viewers into smart users, and smart TVs will shine in gaming, education, advertising, healthcare, smart technology, and video applications.
Attracting users to display their supernatural powers is even more important than traditional television. Internet TV users leave data such as identity, interest, and behavioral trajectory when they watch TV. This provides data support when Internet TV operators push advertisements. The media's short board is precisely the non-data operation.
In order to obtain user data, Internet TV has a "TV operating system" to provide an environment for user login. Millet TV's operating system is based on Android-customized MIUI. Xiaomi's user account can be multi-screened via mobile phone, iPad and an account. LeTV's operating system is Letv Ul. LeTV, LeTV App and LeTV are connected through an account to understand the user's usage habits on the three screens. Micro Whale TV is WUI, its focus is to unite the projection of micro whale and Internet TV, "Internet TV is a large Pad." Micro whale TV CEO Li Huaiyu summed up this way.
Users are "pulled" back to the big screen from a small screen to achieve a greater advertising effect. Internet-based companies all focus their competition on content construction. The strategy of the micro-whale TV is to find users' pain points. The teaching experience such as yoga and aerobics is better than the small-screen viewing experience in the big-screen teaching content. The children's education is more suitable for parents to accompany them while watching. Therefore, exercise packs and children's bags are The teaching content was packaged on the video of the Little Whale TV.
Millet TV invested $1 billion in content development in November 2014 and invited Chen Xin, editor-in-chief of Sina.com, to take charge of content development. Shortly afterwards, Xiaomi TV invested RMB 1.8 billion in iQiyi, followed by another one. Investing in Youku Tudou, shares in Huace Film and Television, from video sites to film and television drama production companies, Xiaomi has capital injections.
The Mango TV, which was formally launched in February this year, hopes to change the existing business model of Internet TV, which focuses on burning money, and realizes sales goals through the “buy content, send hardware†model. With hardware subsidy content, front-end fees are charged by content and the back-end is realized.
The e-commerce giant Alibaba sticks to its users through a “bullying†strategy. “Internet TV competition is a long-distance running. Its time span starts in 2013 and will continue until 2020, just like the mobile Internet in the past decade. "Yang Weidong, CEO of Alibaba Culture and Entertainment Group's Great Excellent Cool Business Group and Alibaba Music. On December 27, 2016, Ali Family Entertainment cooperated with Mango TV. Mango TV is Hunan Satellite TV's mobile internet product. This cooperation allowed Ali Family Entertainment to own the content of Hunan Satellite TV. There were 1989 films, 69,915 TV shows, and 139,327 titles of variety shows. "Let users do not need to switch other applications to meet video requirements." Yang Weidong concluded.
As the largest genuine content aggregation platform in China, new players, TV, and China Mobile’s capital and scale advantages have converged on the exclusive applications of Mickey Video, Mickey Music, Mickey Games and Mickey Academy, including 80% coverage. More than 200,000 hours of massive video resources; more than 100 cloud games, more than 200 legitimate game resources for video games; more than 10 million music resources, including nearly 200 concerts and over 100,000 First Kara OK; Deeply cultivating four vertical fields, accumulating over 5,000 excellent course educational resources, users can find high quality content in various life scenarios...
Ovid Cloud's monitoring data predicts that by 2017, the penetration rate of OTT TVs for Chinese households will reach 45%. In 2013, when the mobile Internet market broke out, smartphone penetration rate reached 43%. The advertising on OTT TVs has been growing at an annual rate of 160% since 2013. In 2016, advertising sales of OTT TVs reached 1.5 billion yuan. “It can be predicted that OTT TV advertising industry will be in 2017-2018. Double-speed growth of the ultra-fast development stage." Li Yu said.
User loyalty is a big problem. Although the commercial outlook of Internet TV represented by OTT TV looks beautiful, there are also some skeptical voices. There is no direct connection between on-demand services and user loyalty. The US market is a lesson According to 2016 related video OTT manufacturer data released by Park Associates, as of the end of March, there are 101 OTT video service providers in the US market, but only 5% of users subscribe to related services, mainly in the Big Three of Netflix, Amazon and Hulu. service provided. However, as of the end of 2015, about 20% of home broadband users in the United States cancelled at least one OTT service, which was a drop from 18% in the second quarter of 2015.
"A lot of times, users will continue to try new services, continue to use the service before the end of the trial period or within a few months, and then cancel the subscription." Shen Qingqing, consultant of Media 360, said, "Some popular programs will attract a New users, such as the HBO drama "Game of Thrones" and WWE's U.S. Wrestling Contest, however, these users are not loyal users and are often unsubscribed after the show ends or after the user has watched the related program."
OTT TV's greatest expertise is in digging new users from traditional TV companies, but it is limited by the technology and business model of OTT TV itself. The cost of user migration is very low, and the mobility is extremely high, and user loyalty is almost zero. How to stick to users and lower excessive liquidity is the biggest test for all OTT platforms.
Background: The competition between the two systems, IPTV advantages are no longer in the past 10 years, Internet technology and video technology continue to develop, the integration of broadcast and television networks, the Internet, and telecommunications networks has gradually increased, and video transmission networks have also expanded from broadcast television networks to information networks. The receiving terminal has expanded from televisions to computers, mobile phones, tablet computers, and so on, resulting in a variety of business forms such as Internet video, mobile Internet video, Internet television (OTT TV), interactive Internet television (IPTV), and mobile TV.
At present, video services based on the spread of the Internet can be divided into two categories.
The first is the use of the Internet (including mobile Internet, hereinafter referred to as the Internet) to provide audiovisual programs to computer users, and OTT TVs represented by Internet TVs and TV boxes.
The other type is network audio-visual services in the form of radio stations and television stations, including IP television (IPTV), mobile TV, and Internet television services well known in the industry, represented by IPTV.
Although the development history of IPTV is earlier and the business model is more mature, OTT TV is replacing IPTV in terms of development trends.
In China, "OTT" has replaced "triple play" since 2012 and has become the hottest word in the video industry. The OTT TV access method is the same as IPTV, which makes it easy for users to transfer. OTT TV operators continue to increase their content integration efforts and have gradually included IPTV content.
In addition to the integration of content, OTT TV has greater industrial ecology and profitability. On the one hand, many video companies have continuously increased their cooperation with television stations, content producers, and film and television companies, allowing industry participants to continue to expand, operate in a flexible manner, and further improve the quality of content delivery. On the other hand, a greater industrial ecology means more business models.
At present, OTT TV has already broken through the scope of home television. From the "seven-screen oneness" in which content is king to smart homes with application scenarios as the core, OTT TV is redefining the value of living room screens. In the future, OTT TV is expected to transform traditional TV viewers into smart users, and smart TVs will shine in gaming, education, advertising, healthcare, smart technology, and video applications. The interaction of the large screen of the living room with other screens will result in more application scenarios than entertainment.
From the perspective of future development, IPTV is the early business of video development for telecommunications. The OTT TV is in the same form as IPTV, but it is more open and may allow all Internet companies, content producers, and even individual users, such as live and self-media, to enter. Therefore, the impact on private network IPTV service model is formed. The trend of OTT TVs replacing IPTV is already evolving. This trend is not based on the will of any company or operator.
Smart TV/box information can focus on smart TV information network sofa butler (http://), China's influential TV box and smart TV website, providing information, communication, etc. on TV boxes, smart TVs, smart TV software, etc. Answering questions.
In 2013, the State Council issued the "Broadband China" strategy implementation plan and deployed the broadband development goals and paths for the next eight years, which means that the "broadband strategy" has risen from departmental action to national strategy.
With the help of the government, Internet TV, including IPTV and OTT TV, has been rapidly popularized in China. According to data from consulting agency Avi Cloud Network (AVC), as of December 2016, according to the calculation of Internet TV activation, the population of Internet TV in China was 311 million. “Traditional television has become a sunset industry, but there are also many people watching it. China has 45 million TVs sold each year. This number is second only to mobile phones,†said Xiaochuan TV CEO Wang Chuan.
A recent global video research report released by an online video market research agency in the United States also confirms this view: In watching online video equipment, watching 5 minutes of video, 55% of users choose to use a smart phone to watch, 20 minutes Within the video, users usually use smart phones, tablets or PCs to watch; and the most noteworthy is that, over 20 minutes of video content, users prefer to use the TV screen to watch, accounting for 92%. The main position of short video is mobile internet. The main position of the long video is still the core of the home use scene—TV.
Faced with this situation, from video sites to traditional television stations, from television manufacturers to telecom operators, are competing for food and television.
In July 2013, the first generation of LeTV was born on the video website LeTV. In the same year, Xiaomi Technology, the main player in the mobile phone industry, also released the first millet TV.
In July 2015, the company’s micro whale television was established. Its main business involves the integration of Internet TV hardware and content.
In February 2017, mango TV with the background of the radio and television team and Gome, Skyworth, China Everbright Optimisation Fund and other four companies established Love Mango TV, and strongly joined the Internet TV.
In March 2017, Hisense Television announced cooperation with Netflix to operate Internet TV in the United States.
In June 2017, the latest "predators" player entered the market - China Mobile's Mi Qi Co., Ltd. and Konka launched "Microphone", covering the current mainstream 32-inch curved screen, 43-inch and 55-inch 4K screen Three kinds. One 32-inch price of 1999 yuan, 55-inch price of 3999 yuan. Compared with similar products in the market, this price is very attractive because China Mobile will provide very competitive subsidies for broadband annual fees and content.
New players, such as the Internet background, broadcasting and television background, and operators' background, are constantly entering, completely changing the inherent pattern of the TV industry. "Internet TV has changed the traditional TV manufacturers to rely solely on hardware profit models, but to operate as a user." Li Wei, general manager of Ovi cloud network home Internet big data division, said, "but in the past period of time, traditional TV users are facing With the ageing trend, Internet companies have seized this opportunity to enter the game."
After more than three years of development, the user groups of Internet TV have indeed been developing in a younger direction. According to the “China Audiovisual New Media Development Report†issued by the Development Research Center of the State Press, Publication, Radio Film and Television in 2013, the TV operating rate in Beijing has dropped from 70% to 30% in three years. Consumers over 40 years of age have become the mainstream of traditional television viewing. The age structure of the crowd and TV viewing population presents an “ageing†trend. Media 360's TV Live Subscriber Analysis Report for the OTT Smart TV Industry 2016 released by Media 360 shows that the audience aged between 25 and 44 is 75%, according to the definition of IMI Market Information Research 2012: “25 to 44†The age group is the backbone of a society."
Once Internet TV has a middle-class consumer class, the business value dimension that the group can tap is enriched. The user orders one of them, and Wang Chuan, the CEO of Xiaomi TV, has summarized it as a “Tipping Modeâ€. "It is almost impossible to charge Internet users in the past few years. In recent years, the payment habits are being formed, or they can be purchased as members or a single drama broadcast." Wang Chuan said. According to LeTV, 13% of LeTV's audience currently watch live TV, and about 58% choose Internet TV content.
In addition to on-demand, the potential of television advertising is also valued by Internet TV. According to data provided by Zenith, in 2015, the share of television advertising worldwide accounted for 36.9%, the share of computers was 19.5%, and the advertising share of mobile phones was 10.4%. Zenith predicts that by 2018, the share of advertising, television, computer and mobile phones in the world will be 33.7%, 16% and 22.4% respectively. Although the scale has been reduced, TV advertising remains the biggest cake because of its large base and good results.
"Although the value of TV advertising has been declining in increments, the stock is still very large." Li Wei explained: "Traditional television as a mass media, through the output of high-quality content to increase ratings, but also use high ratings to attract brands to advertise. What is in practice is the 'secondary sales theory' of the media. At the same time, according to the 2016 Iqiyi United Group of Companies and Owe Cloud Network released the 2016 White Paper on the Development of China's Internet Television Ecological Chain, consumers’ trust in television advertising has been achieved. 54% is the first of all channels.
In the eyes of Gome President Wang Junzhou, Internet TV represents the future of the television industry. Internet TV is increasingly favored by young users because of its content advantages and interactive advantages. This is also a source of strong confidence for Gome to invest in Internet TV and become the largest shareholder of Love Mango TV.
At present, OTT TV has already broken through the scope of home television. From the "seven-screen oneness" in which content is king to smart homes with application scenarios as the core, OTT TV is redefining the value of living room screens. In the future, OTT TV is expected to transform traditional TV viewers into smart users, and smart TVs will shine in gaming, education, advertising, healthcare, smart technology, and video applications.
In order to obtain user data, Internet TV has a "TV operating system" to provide an environment for user login. Millet TV's operating system is based on Android-customized MIUI. Xiaomi's user account can be multi-screened via mobile phone, iPad and an account. LeTV's operating system is Letv Ul. LeTV, LeTV App and LeTV are connected through an account to understand the user's usage habits on the three screens. Micro Whale TV is WUI, its focus is to unite the projection of micro whale and Internet TV, "Internet TV is a large Pad." Micro whale TV CEO Li Huaiyu summed up this way.
Users are "pulled" back to the big screen from a small screen to achieve a greater advertising effect. Internet-based companies all focus their competition on content construction. The strategy of the micro-whale TV is to find users' pain points. The teaching experience such as yoga and aerobics is better than the small-screen viewing experience in the big-screen teaching content. The children's education is more suitable for parents to accompany them while watching. Therefore, exercise packs and children's bags are The teaching content was packaged on the video of the Little Whale TV.
Millet TV invested $1 billion in content development in November 2014 and invited Chen Xin, editor-in-chief of Sina.com, to take charge of content development. Shortly afterwards, Xiaomi TV invested RMB 1.8 billion in iQiyi, followed by another one. Investing in Youku Tudou, shares in Huace Film and Television, from video sites to film and television drama production companies, Xiaomi has capital injections.
The Mango TV, which was formally launched in February this year, hopes to change the existing business model of Internet TV, which focuses on burning money, and realizes sales goals through the “buy content, send hardware†model. With hardware subsidy content, front-end fees are charged by content and the back-end is realized.
The e-commerce giant Alibaba sticks to its users through a “bullying†strategy. “Internet TV competition is a long-distance running. Its time span starts in 2013 and will continue until 2020, just like the mobile Internet in the past decade. "Yang Weidong, CEO of Alibaba Culture and Entertainment Group's Great Excellent Cool Business Group and Alibaba Music. On December 27, 2016, Ali Family Entertainment cooperated with Mango TV. Mango TV is Hunan Satellite TV's mobile internet product. This cooperation allowed Ali Family Entertainment to own the content of Hunan Satellite TV. There were 1989 films, 69,915 TV shows, and 139,327 titles of variety shows. "Let users do not need to switch other applications to meet video requirements." Yang Weidong concluded.
As the largest genuine content aggregation platform in China, new players, TV, and China Mobile’s capital and scale advantages have converged on the exclusive applications of Mickey Video, Mickey Music, Mickey Games and Mickey Academy, including 80% coverage. More than 200,000 hours of massive video resources; more than 100 cloud games, more than 200 legitimate game resources for video games; more than 10 million music resources, including nearly 200 concerts and over 100,000 First Kara OK; Deeply cultivating four vertical fields, accumulating over 5,000 excellent course educational resources, users can find high quality content in various life scenarios...
Ovid Cloud's monitoring data predicts that by 2017, the penetration rate of OTT TVs for Chinese households will reach 45%. In 2013, when the mobile Internet market broke out, smartphone penetration rate reached 43%. The advertising on OTT TVs has been growing at an annual rate of 160% since 2013. In 2016, advertising sales of OTT TVs reached 1.5 billion yuan. “It can be predicted that OTT TV advertising industry will be in 2017-2018. Double-speed growth of the ultra-fast development stage." Li Yu said.
"A lot of times, users will continue to try new services, continue to use the service before the end of the trial period or within a few months, and then cancel the subscription." Shen Qingqing, consultant of Media 360, said, "Some popular programs will attract a New users, such as the HBO drama "Game of Thrones" and WWE's U.S. Wrestling Contest, however, these users are not loyal users and are often unsubscribed after the show ends or after the user has watched the related program."
OTT TV's greatest expertise is in digging new users from traditional TV companies, but it is limited by the technology and business model of OTT TV itself. The cost of user migration is very low, and the mobility is extremely high, and user loyalty is almost zero. How to stick to users and lower excessive liquidity is the biggest test for all OTT platforms.
Background: The competition between the two systems, IPTV advantages are no longer in the past 10 years, Internet technology and video technology continue to develop, the integration of broadcast and television networks, the Internet, and telecommunications networks has gradually increased, and video transmission networks have also expanded from broadcast television networks to information networks. The receiving terminal has expanded from televisions to computers, mobile phones, tablet computers, and so on, resulting in a variety of business forms such as Internet video, mobile Internet video, Internet television (OTT TV), interactive Internet television (IPTV), and mobile TV.
At present, video services based on the spread of the Internet can be divided into two categories.
The first is the use of the Internet (including mobile Internet, hereinafter referred to as the Internet) to provide audiovisual programs to computer users, and OTT TVs represented by Internet TVs and TV boxes.
The other type is network audio-visual services in the form of radio stations and television stations, including IP television (IPTV), mobile TV, and Internet television services well known in the industry, represented by IPTV.
Although the development history of IPTV is earlier and the business model is more mature, OTT TV is replacing IPTV in terms of development trends.
In China, "OTT" has replaced "triple play" since 2012 and has become the hottest word in the video industry. The OTT TV access method is the same as IPTV, which makes it easy for users to transfer. OTT TV operators continue to increase their content integration efforts and have gradually included IPTV content.
In addition to the integration of content, OTT TV has greater industrial ecology and profitability. On the one hand, many video companies have continuously increased their cooperation with television stations, content producers, and film and television companies, allowing industry participants to continue to expand, operate in a flexible manner, and further improve the quality of content delivery. On the other hand, a greater industrial ecology means more business models.
At present, OTT TV has already broken through the scope of home television. From the "seven-screen oneness" in which content is king to smart homes with application scenarios as the core, OTT TV is redefining the value of living room screens. In the future, OTT TV is expected to transform traditional TV viewers into smart users, and smart TVs will shine in gaming, education, advertising, healthcare, smart technology, and video applications. The interaction of the large screen of the living room with other screens will result in more application scenarios than entertainment.
From the perspective of future development, IPTV is the early business of video development for telecommunications. The OTT TV is in the same form as IPTV, but it is more open and may allow all Internet companies, content producers, and even individual users, such as live and self-media, to enter. Therefore, the impact on private network IPTV service model is formed. The trend of OTT TVs replacing IPTV is already evolving. This trend is not based on the will of any company or operator.
Smart TV/box information can focus on smart TV information network sofa butler (http://), China's influential TV box and smart TV website, providing information, communication, etc. on TV boxes, smart TVs, smart TV software, etc. Answering questions.
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