Who is profitable on Internet TV? In the end, it is the winner

Recently, Xiaomi convened the launch of the millet TV 3S. Xiaomi co-founder and Wang Chu, head of the millet TV, took a great deal of space at the Xiaomi 927 new conference. He introduced the millet TV 3S 65 inch, 65 inch home theater, 55 The construction of three new products and millet in terms of content, and LeTV’s “tear-off” are inevitable.

Wang Chuan recently said in an interview with the media: "Millet TV hardware does not lose money, this year does not pursue sales. If you want to exceed LeTV, it is a matter of minutes." Of course, this is equal to admitting Xiaomi TV sales as LeTV.
Wang Chuan also said: "Millet TV has always been profitable. We do not pursue sales because once we do it, it means we will lose money. As far as I know, LeTV's current loss is obvious and it is a huge loss. They have too much money to burn and will never make it back.”

At the same time, this has also led to our thinking. Why is the sales of Internet TV, which is a unique product in China's TV market, continuing to rise this year, but it still cannot be profitable? We analyze the following points.

At present, Internet TV makers are indeed in a state of most losses. Even companies that claim to be profitable health statuses mention the growth of their profits. The data is also very metaphysical, showing that profits are minimal. Let's analyze first. Why does the sales volume of Internet TV products continue to rise, and when it enters the TV market, Internet TV can be said to rise in the wind, with a very low price, and a high-quality alternative source “forced” in the TV product market to take hold? Why do users buy Internet TV? The reason is because the price is cheap. This is an "accident" that starts with the price.
The Internet TV products it implements are not as bright as the surface, not only the material cost of the product itself, but also the source of the film and the copyright license which are not cheap, and in the early stage of the market, they need to use the price to seize the market. Your price is low. If you are as low as you, you will send members. When you send members, I will send members to send TV. This has created a vicious competition. Whoever tore them is not accurate. It should be said that everyone tears together. Who can hold the “hard resistance” to the end? , Who can occupy the largest market share, and in terms of the current Internet TV market, it is still in a state of darkness and incommunicado.

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