Slow OTT market recovery Internet companies have different plans

However, several companies had previously said that they were familiar with geek familiar box manufacturers, said after the reshuffle, the OTT box market is slowly recovering. According to the feedback from the business enterprises, the current OTT policy has also entered a period of calm, and the SARFT has not recently introduced relevant policies for the OTT market.

Has the video box really started to recover?

Judging from the feedback from Shenzhen OTT box manufacturers, sales of OTT boxes have gradually begun to rise after industry consolidation.

1, box manufacturers sales rebound

An OTT box manufacturer that operates several brands at the same time said that geeks are pretending that sales of box products have improved. Currently, the monthly shipments of its offline channels have reached the scale of 3-4 million units. Although there is still a certain gap compared with that before the rectification, they are quite satisfied with this achievement.

2. The survey shows that sales volume has recovered in the fourth quarter of 2014

The recovery of the OTT business has also been confirmed by consulting company data. A report by Gran Research, a company that specializes in radio and television system data surveys, showed that the OTT video box market entered a wait-and-see and adjustment period in the third quarter of 2014, and shipments shrank significantly. From the fourth quarter, the market began to pick up. As of the end of 2014, the OTT box market had more than 30.4 million units. Gran Research believes that OTT boxes will gradually recover in the first quarter of 2015 as all aspects of the OTT video chain more clearly define its industry location and product boundaries. Optimistic estimates that by the end of 2017, the OTT box market will reach 90 million units.

3, millet music as superior soil increase layout efforts

With the recovery of sales, Internet companies and video sites are generally optimistic about the OTT market. After the integration of licenses and content in the past year, the layout of the living room was re-arranged. In addition to mobile and PC, the occupation of TV screens has become the target pursued by the industry chain companies.

(1) Ali

According to news on the OTT supply chain, Ali had completed the bidding for the first 1.5 million Tmall Boxes last month. The tender for the second batch of about 5 million Lynx boxes is advancing. Allegedly, Ali optimistically believes that the sales volume of the overall OTT box is expected to reach 50 million units in 2015. To this end, Ali has also set a KPI target for developing 20 million YunOS users this year.

It is understood that Ali's own Lynx box will mainly be sold through online channels. In the development of YunOS users, Ali will still be promoted through hardware subsidies and e-commerce sales commissions.

In order to promote its own business in the OTT field, Ali still used the previous subsidy model. Compared with before, the subsidy intensity has been increased after 2015. Box manufacturers' products can receive Ali's subsidies without shipping. A supplier on the supply chain told pretends to be a geek. Last year, Ali’s box allowance for each pre-installed YunOS system was 30 yuan. This year, Ali has increased the intensity of subsidies. It is said that the subsidies for each unit are already close to 40 yuan. .

The "TV e-commerce" model also gave box manufacturers the power to use Wah and Alibaba. Ali's "seeing and buying" e-commerce service allows users to click on the products that appear in the video when watching TV dramas, movies, and animations. After the user consumes, the box maker can get a certain percentage of shares.

Although it did not disclose how much additional income can be obtained through this model each month, it has already shown everything in terms of the proportion of box manufacturers using the number of Wah and Alibaba platforms. Among the Shenzhen box manufacturers exhibiting at CCBN this year, the vast majority of boxes use the number of Chinese licenses, and only one or two households use Mango TV licenses.

(2) Eucalyptus

Despite the introduction of smart hardware such as boxes and routers in December last year, Youku Potato's box did not appear to be planning to do large-scale marketing online in 2015. According to the latest news, You Tu has already stepped up efforts to promote and support offline channels.

Youku Tudou held a smart hardware partner recruitment communication meeting in Jinan last week. At this communication meeting, Youtu has expressed information about the development of distributors, city agents, and cooperative distributors in each step area. It is said that in the development of its partners, Uniland has relevant preferential policies in terms of pricing and support policies. This communication will also be held in Guangzhou, Shenzhen, Chengdu, Wuhan, Nanjing, Hangzhou, Changsha, Zhengzhou, and Harbin.

Compared with Alibaba's online sales of Tmall Box, Shenzhen's box makers need to be more alert to changes in offline channels if the new strategy for Unisex progresses smoothly.

(3) millet

In terms of OTT, Xiaomi is also promoting the integration of licensee's content to provide its users with richer video content.

Chen Hao said in response to media questions that within a month or two, the content of Xiaomi TV and box products will basically converge. At present, millet TVs and boxes use the Galaxy license and the iCNTV future TV license.

It is understood that Xiaomi is negotiating with Mango TV, iCNTV, Galaxy and other broadcast control platforms to access part of the content. Xiaomi official stated that with the increase in investment in content and cooperation, Xiaomi has already reached cooperation with 2/3 of the domestic video sites in content. If it is successful, users can enjoy the same content services as the new products on the Xiaomi TV and OTT set-top boxes using the iCNTV license.

Xiaomi related people are geeks pretending to express that in 2015, Xiaomi will start the "all-room strategy" to provide targeted product solutions for different household consumption groups. In terms of OTT, Xiaomi hopes to develop more targeted competition with copycat manufacturers through continuous enrichment.

(4) LeTV

Due to various factors such as policies and internal adjustments, LeTV's shipment of OTT boxes last year did not meet expectations. It is said that LeTV will also have an estimate for the shipment of OTT boxes this year, with a target of approximately 2 million units.

In addition to the box, LeTV will continue to introduce new products in super TV. LeTV revealed that it is a geek who pretends that its new product will have a breakthrough in technology and size. LeTV will invest more power in voice and somatosensory.

(5) Tencent

Tencent and Konka had previously cooperated to launch Super TV. In the OTT field, Tencent's action is still relatively slow.

At this CCBN exhibition, a Shenzhen-based supply chain company revealed that it is a geek who pretends that Tencent Investment’s Taijie Video is currently customizing an OTT box for Tencent. It is understood that this box is playing Tencent's LOGO, using CIBN's license. There is a Tencent custom key on the box's remote control.

Tai Wei Video General Manager Deng Hao denied the authenticity of the news to the geek pretending to be a geek. Deng Hao said that Taijie Video only owns OTT products with its own brand, and Thaitech will also have new products released this year. It is understood that Tai Jie has launched a number of WEBOX boxes. Prior to this, Tai Jie also gave Hua Lu an OTT box software program.

Why does the box market recover?

When talking about the reasons for the recovery of the video box market, OTT box manufacturers and think that there are mainly the following reasons:

1. After the OTT rectification, the licensees and video websites have stepped up their content development efforts. Video content is richer and more regulated than before, and users’ expectations for live broadcasts are also diminishing.

2. After several years of market education, the OTT box has been approved by users.

3. The licensees and relevant industry chain enterprises have increased the OTT promotion and subsidies, and users can obtain better services.

4. After the OTT box reaches the user's hand, there are many convenient ways to allow these boxes to install other APP applications for more functionality.

5, compared with the update of the TV input, the purchase of OTT box allows the original TV has a certain amount of smart features, more cost-effective.

As SARFT has not introduced new policies to the OTT industry in the near future, related companies are also promoting the development of OTT, and the box market has begun to recover. However, SARFT's approval of OTT terminals is still very strict. At present, there are few OTT boxes that have passed approval and received serial numbers. When the industry chain company promotes OTT business, it still needs to pay attention to policy risks.