In today’s competitive TV market, where panel prices remain high, demand is slow to grow, and competition is intensifying, the color TV industry has entered a period of low-profit hardware. However, this era hasn't stopped innovation. Companies like Hisense are shifting away from traditional hardware-centric models, focusing instead on large-screen internet operations and user engagement to reshape their business strategies.
Hardware profits have become increasingly slim. In the first half of 2017, for example, the net profit margin of China's color TV industry fell below 1%, down from 3% in 2011. This decline is due to several factors. First, the cost of panels—accounting for about 50%-60% of the total cost—has risen sharply. From 2016 to mid-2017, panel prices increased by around 40%. Even though prices slightly dropped later, they remained significantly higher than before.
Second, internet companies have disrupted the market with aggressive pricing. Brands like Xiaomi have introduced affordable smart TVs with features such as voice control, which not only attract consumers but also pressure traditional manufacturers. These price wars have further squeezed margins for established players.
Third, fierce competition has forced manufacturers to engage in heavy promotions, often leading to reduced profitability. As demand growth stagnates, companies rely more on discounts and offers, which negatively impacts their bottom line.
Despite these challenges, there is significant opportunity in content and service operations. With millions of users now accessing internet-enabled TVs, companies can generate revenue through subscriptions, advertising, and other digital services. For instance, Hisense saw a massive increase in its VIP user base in 2016, while brands like Skyworth have also expanded their online presence.
The value of large-screen internet operations is growing rapidly. Internet TVs offer more than just entertainment—they integrate education, shopping, and social features, keeping users engaged for longer periods. According to a report by the Dentsu Group, over 53% of users spend more than two hours daily on OTT platforms. Additionally, advertising and affiliate marketing are becoming key revenue drivers.
With over 213 million OTT devices in China as of 2016, the market is still expanding. By 2020, it's expected to surpass 400 million units. Advertising revenue alone reached 2.3 billion yuan in 2017, showing strong growth potential.
For color TV companies, the future lies in building robust internet operations and expanding their user base. Focusing on content delivery, user experience, and innovative business models will be crucial for long-term success. As the industry evolves, those who adapt quickly will thrive in this new landscape.
If you're interested in smart TV or box information, visit Smart TV/Box Info (http://), a leading platform offering insights into smart TVs, TV boxes, and related technologies. Stay updated and get answers to all your questions!
Copper Tube Terminals Without Checking Hole
Our company specializes in the production and sales of all kinds of terminals, copper terminals, nose wire ears, cold pressed terminals, copper joints, but also according to customer requirements for customization and production, our raw materials are produced and sold by ourselves, we have their own raw materials processing plant, high purity T2 copper, quality and quantity, come to me to order it!
Copper Tube Terminals Without Checking Hole,Cable Lugs Insulating Crimp Terminal,Cable Connector Tinned Copper Ring Terminal,Tubular Cable Lugs Crimp Terminal
Taixing Longyi Terminals Co.,Ltd. , https://www.txlyterminals.com