LeTV and Xiaomi disputed "hardware free content charging"

On the day of LeEr's “414 Hardware Free Day”, I don’t know if Jia Zhan, who was in LeTV’s office in East Fourth Ring, did more sneezes, because basically Wang Chuan, the person in charge of Xiaomi’s TV, also responded with a small one. The media communication meeting, while declaring the Xiaomi television content free-day plan, still did not forget to comment on a few “friendly merchants” to the effect that LeEco took “hardware free” as its name but actually “cleared inventory” and did a very good job. clever".

Is this "smart" in Wang Chuan's mouth a derogatory phrase or a derogatory term? Let's put it aside. How important it is to clear the inventory. I believe that those who have not worked in the manufacturing industry may not be able to figure it out. It is worth spending a little space. Explain briefly.

Clear stocks

On the one hand, because inventory goods require manufacturers to purchase materials to arrange production, cash has already been spent. Failure to timely complete the sale of funds will affect the subsequent preparation of other products and even affect the production of new products ( Of course, this is not the most important thing for LeTV.) More importantly, it interferes with the marketing of subsequent new products, especially in the pricing strategy: It is obviously unrealistic to set new prices at low prices. After all, the old models are more expensive than the new models, but if you want to ensure that the existing products are still The ability to sell out to give new products a higher price is obviously not in line with LeTV's usual marketing tactics.

Thus, the idea of ​​this genius was born: under the premise of guaranteeing that the overall sales price of hardware plus content is not lower than a certain threshold, the budget for clear inventory is used to subsidize sales, and this behavior is packaged into hardware free content charges. It is not the traditional routine of buying TV to send members such as micro-whale, PPTV, etc. (you also mean to call the Internet company -_-).

Please pay attention to which part of the fee is free and which part of the charge is not just a matter of arrangement but has a lot of meaning, just like the paragraph we used to hear before. “It is not good for university girls to sip wine at night, but if it is Miss Liquor has won a bachelor's degree. Is it more energy?” Such a small partner who is responsible for marketing than Xiaomi TV should still have a long snack. If he doesn’t, he will post a “straight down 200 包邮” on rice flour festival. Okay?

As Wang Chuan had expected, “414 Hardware Free Day” sounded like a happy moment. LeTV had already held a second press conference after six days, except for Jia Dan’s tears on the stage of LeTV (if this is also half the price for double performance). Just fine) and known as the configuration of a comprehensive rolling on the price of a comprehensive bottoming out of the competition as the music as the mobile phone 2 of course, there are still unfortunately failed to catch up with the 414's music TV fourth generation of new generation, could not help but make us more for the movie The line in Dong Xi Xi Duo respectfully admires: “The person who knows you best is not your friend but your enemy (you).” The only thing that is not too harmonious is a small amount of time. Those big fans who have already taken advantage of the free hardware, we must solemnly say: “Breakfast and early enjoy, late buy discounts” for their behavior in the forum.

What does LeTV do for "Like Hardware" for LeTV?

We continue to relish the exciting marketing activities of LeTV 414 Hardware Free Day. In addition to solving previous inventory problems, have we brought in some other value?

Any person with a normal IQ will not naively think that TVs and mobile phones that started on April 14th will be free to take any money. The rational approach is to calculate the sum of the prices of these content and other similar configurations on the market. Brand TV makes a comparison (of course, the price of both hardware and content must be counted) and ultimately makes a "still very cost-effective" conclusion and orders without hesitation. At the same time, LeTV's real purpose is achieved: in the user's mind repeatedly emphasizes that "content is valuable". A little analysis will reveal that this is actually a brilliant layout with a single arrow and three eagles. The value brought by it can be seen as a by-product of this layout:

First of all, the “0 yuan to take hardware” gimmick has caused users to flock, and a large number of LeTV videos and LeTV sports membership fees sold at the original price have been included in the report. Such a wonderful number believes that any investor is willing to see To;

Secondly, membership rights and TV requirements are directly tied to each other, which effectively guarantees the user's renewal rate in the coming years. At the same time, because the user has already paid for the content, the corresponding activity will not become a problem.

Finally, because of the content and hardware binding, LeTV has cancelled the entity's membership card. This move not only allows Taobao and other uncontrolled channels not to be flooded with low-price membership card transactions, thereby driving down the entire membership system. What's more important is to realize that "only this one has no treasure number", let LeTV's members' purchase portals are concentrated in LeTV's own system, which is more user-friendly.

The scarcity and value of high-quality content has always been a concept that LeTV has repeatedly strengthened, so naturally there will be doubts about this: “Is music content on television really good or bad, worth not much money?” “ The answer is definitely better. Since 2010, LeTV has reserved the copyright of new media for many film and television works through the profit distribution method of copyright distribution. At the same time, since 2012, it has used investment or home-made methods to gradually exert its power in films, network dramas, and variety shows to form a batch of Well-known IP, plus non-stop copyright purchases during this period, it can be said that LeTV has a considerable accumulation of content.

For "is it right?" it is relatively difficult to answer some questions. After all, there are many costs associated with membership fee pricing, such as copyright amortization, CDN cost, number of users, active rate, renewal rate, and system operation and maintenance, and LeTV. The profit rate set by him alone is inferred from the simple data of the annual report. It seems that it is almost impossible to treat this issue. To treat this problem, it seems that the sentence circulated on the Internet can be a more appropriate answer: "Happiness is good."

Why LeTV's content advantages are getting smaller and smaller?

Of course, no matter if you are not happy with this answer, LeTV has an irrefutable dominance in the launch of self-owned brand TV. The secret of success naturally depends on the initial stage of LeTV. The entire industry is still flying in piracy. In his state, Jia Yueting is very keenly aware that future business logic will be doomed to be free from pirated content, and chooses to stock up on copyrighted material when the copyright price is low, thus laying a good foundation for LeTV’s commercial success. Afterwards, the use of Internet-made dramas that cater to the tastes of Internet users attracts young users and becomes an important competitive element in Internet marketing.

However, the construction of its own content is a matter of continuous and heavy capital investment. As more Internet predators such as BAT cut into the smart TV industry, the content advantages of LeTV are gradually being reduced or even surpassed, mainly due to the following aspects: factor:

First, with the expansion of TV sales, LeTV’s coverage has not only continued in the first- and second-tier cities and heavy Internet users, but has continued to sink, and has gradually become popular among users in the third to sixth-tier cities. This is why LeTV’s main content is Internet content. It is more difficult for the user groups to continue to maintain precise matching. Since LeTV did not disclose detailed user content viewing trends, we use the data of Hisense Operating Platform for reference as a reference. From this set of data, it can be seen that the TV series is still the most important user demand, and the drama in the drama series is still far away. Far from being able to play a central role, even the main promotion channels of the “Yueyue Biography” that LeTV pushed forward in 2016 are still passed by Beijing Satellite TV and Dragon TV (according to SARFT’s “one play two stars” requirement). The two Internet channels, LeTV and Tencent Video, are not television dramas created specifically for the Internet channels and audiences.

Secondly, as for the copyright content of the radio and television people, the user's popularity will gradually shift with the passage of time. A large part of the vast amount of copyrighted music content that has been hoarded has already been converted into a long-tailed demand for users, and there is no longer a relatively concentrated degree of heat (except for the "Tong Biography" exception in this respect).

The last and most important point is the shortcoming that Lexie insists on using its own copyright-unconvergent content organization model. This kind of content organization model has the significant advantage that its own content is not affected by business cooperation. At the same time, it also imposes quite a few requirements on the operator: We must not only have money (to buy copyright), but also have to be able to bet ( Potential hits, such as the recent "hot sun", have virtually increased the difficulty of building core content.

To be fair, the first two aspects in all three reasons are actually objective laws and there will be such an impact on any platform, not just for LeTV, but for the final point, that is, the content organization mode is based on the characteristics of smart television operators. And the demand (plus a business model for LeTV) was chosen.

Compared to LeTV's own copyright, what are the millet's aggregated forms worth talking about?

Compared to LeTV's background as a proprietary video site and the selection of its own copyrighted content organization, Xiaomi, who had earlier entered the field of smart TVs, and latecomers, microwhales, decided to take the aggregation platform early because of the state of copyright. the road.

Compared to the proprietary approach, the aggregation platform has the following advantages:

First of all, it is possible to bypass the long accumulation process of self-purchasing copyrights. Directly linking the media asset provided by the content provider with its own CMS can be quickly brought online. This “send a shortcut” model greatly reduces the time cost of content construction and delivers massive amounts of premium content to users as quickly as possible, without the need to accumulate time. There is a huge attraction for the zero-starters of content, which is one of the fundamental reasons why millet and micro-whales have chosen this path.

Second, it is the transformation of content-building ideas, turning “exclusive” into “complete”. In the early days of the development of the smart TV industry, “exclusive copyright” was once the core advantage of competition among various platforms. However, with the development of the industry (especially the rising of copyright prices), blind pursuit of exclusive rights has become an unrealistic idea. The so-called exclusive content can play a more important role in promoting the brand, etc. (of course, it also has the effect of driving the conversion of paying users. The previous "Langshan War Discipline" and "The Sun's Descent" are good examples). The more important thing for the rapid development of users is the breadth of content. This is the specific technique that Xiaomi TV has dared to launch “Notary Office certification” after deep integration with iQiyi content last year, and proactively announced that the content has surpassed LeTV.

In the end, the polymerization mode is the idea of ​​setting up a platform for others to sing operas. In Liyuan, as long as there is a good show and a box office, the opera garden will certainly be willing to put resources into a corner, and the same is true for TV platform operators. In order to obtain more content exposure and revenue sharing, each content provider will strive to provide its own excellent content and give full play to their subjective initiative.

Of course, platform polymerization will not be a panacea. There are also many practical difficulties in conducting business cooperation with content providers. In the final analysis, it is how to solve the conflict of interests between the two parties or even multiple parties.

Taking Xiaomi TV as an example, in the previous content organization, many content providers engaged in docking took individual monthly subscriptions in order to realize their maximum benefit, so users will see up to 4 independent needs on Xiaomi’s TV. Content packages purchased, it can be imagined how bad the user interaction experience based on this business model is. Later, with the launch of Xiaomi TV's own membership system, Xiaomi solved this problem with its huge user stock and subsidies, allowing users to view the vast majority of paid content as long as they purchase Xiaomi members.

In the same way, the micro whale's solution is more brutal; in order to ensure the user experience, the rich and wise micro whale directly saves money and buys the full amount of content of a large number of strong IP variety show content providers according to the number of users and packs it in In some member systems, it is easy to bypass Xiaomi’s gradual trial and error and hard business negotiation.

Compared with the various advantages of platform aggregation, the content of self-owned content has increased rapidly in its early operations and gradually slowed down in the near future, but it is not absolutely irreversible. LeTV, as the smart TV platform with the largest stock in Internet brands, will have to face this issue seriously. On the one hand, it will increase investment in copyright, and more importantly, it will try to cooperate with other content providers, such as copyright swaps. There is also an opportunity to re-leave the content of LeTV back to the first camp.

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