Smart TV Ecology Dispute: Internet Pale

A tearful battle around the ecology of the smart TV is being staged. The protagonists of the story are Xiaomi and LeTV, who are the ones who are still alive. The focus of the incident originated from Xiaomi’s press conference titled “Hai Na Bai Chuan” on June 10th. Lei Jun moved out of the notary office and came to the conclusion that Xiaomi’s smart TV content is richer than LeTV’s. Wang Chuan, the vice president of Xiaomi, threw out LeTV's unecomic remarks when interviewed by the media.

In view of Xiaomi Wang Chuan’s remarks on music as ecological, LeTV started to fight back and a fierce battle of verbal warfare was staged. In fact, this is not the first time that Xiaomi and LeTV have gone to war. In February 2014, LeTV began to court Xiaomi with a violation of the information network. Xiaomi and LeTV have already fought three rounds.

In the constantly escalating wars, what surprised LeTV and Xiaomi was that halfway through the game, a bite was scored and LeTV and Xiaomi were given the most painful blow. On the morning of June 15, Hisense convened an offline conference with the theme of “Everything in Action”, claiming that Hisense Smart TV activated more than 10 million terminals.

According to Liu Hongxin, chairman of Hisense Electric, the total sales volume of Hisense Smart TV is 13.8 million and the activation rate is 77%. Compared with Xiaomi and LeTV, the advantage of Hisense smart TV in scale is still very obvious. According to the public figures, the sales volume of LeTV smart TV is 1.5 million units, and the sales volume of Xiaomi TV is 300,000 units.

What really made LeTV and Xiaomi ashamed was the first advertisement of Hisense Smart TV Ecology. Jiaduobao and Mengniu respectively signed a 10 million yuan advertising cooperation contract with Haishiyun Company as the first advertisers to put video advertisements on the Haishi Cloud Platform. This means that advertisers have recognized the advertising effects of large-screen televisions.

If the Haishi cloud platform can have continuous advertising, then the content + terminal + data + service created by Hisense Smart TV has become a closed loop of a real value chain, and this ecological chain is the best for Xiaomi and LeTV. A punch has been made, because the two companies that have adhered to the Internet standards have been talking about ecological stories, and so far there is no visible value.

Perhaps many people think that the smart TV ecology advocated by LeTV and Xiaomi is more promising than Hisense's ecology. The indisputable fact is that the ecology of Hisense Smart TV has been realized, and the ecology of LeTV and Xiaomi is still a castle in the air. This can be said to be a manifestation of the paleness and powerlessness of the Internet wave camp. Of course, in the capital market, the eco-story of LeTV and Xiaomi not only made the giants such as Hisense and TCL “puzzling”, but also made them feel a bit undecided.

Selling only 1.5 million smart TVs, the market value was once close to the threshold of 150 billion yuan, while the market value of Hisense Electric was only 44.6 billion yuan. The market value of the entire group of TCL was not more than 60 billion yuan. In this regard, TCL chief executive Li Dongsheng also said in an interview, hard sell TV for a year, net profit of several billion yuan, but the market value is a great gap with LeTV. Compared with the still-losing LeTV and Xiaomi, the traditional home appliance giants represented by Hisense and TCL are indeed sighing with their capital.

The ecological story of the capital level is, after all, a story. In terms of performance, Xiaomi, Leshi, and other so-called Internet companies that are affiliated with the Internet's new wave of schools are hard to compare with traditional giants in a short period of time. Admittedly, Xiaomi created a myth of a valuation of 45 billion U.S. dollars, and LeTV’s share price has soared, becoming a giant with a market value of nearly 150 billion yuan. However, after these bubbles, the Internet factions with less than the fraction of traditional enterprises do not feel very weak?

Similar examples exist not only in the smart TV field. In many areas of the Internet, we can see similar examples. In the Internet car rental field, Internet factions represented by Uber, Didi and Kuai are trying to subvert the traditional taxi industry; in the field of e-commerce, Taobao and JD.com are also trying to subvert the traditional supermarket; in the field of payment The Internet payment represented by Alipay and Wechat Payments also tried to subvert the traditional settlement organizations such as UnionPay...

Always shouting subversive, but never subverted, this is a true portrayal of the competition between the Internet and traditional factions. As of now, in the area of ​​e-commerce, Jingdong is still losing money. Shang Chao, which was hit by Taobao and Jingdong, is still profitable. Uber, Didi and Kuai used the subsidies to pull users and did not take away taxis; Alipay almost monopolized electronics. In the payment market, UnionPay’s POS is still the mainstream payment tool for offline supermarkets and convenience stores.

In business circles, there is a saying that business models that do not aim at profitability are unhealthy. Only in terms of LeTV and Xiaomi's smart TV ecology dispute, there is no profit, and the ecological outlook is still more impressive. In the cruel commercial competition, the future is talked about ecologically, regardless of profitability. How long can this model live for? After the shortage of capital, how do the Internet’s palates have to survive? This is one of the most worthwhile issues for LeTV and Xiaomi’s war.

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