Questioned LeTV TV non-compliance millet tightly dig music corner

Entering the third week of June 2015, Xiaomi LeTV’s “Tearless War” did not show any sign of subversion. Wang Chuan, head of Xiaomi's television business, once again emphasized his three questions about LeTV at the press conference on the afternoon of the 15th.

Actually, on June 12th, Wang Chuan had passed Weibo @ LeTV Jia Yueting, hoping that Jia Yueting answered three questions about whether LeTV was in violation of regulations, whether LeTV was less than millet, and whether LeTV was bundled with charges. However, Jia Yueting did not Direct response.

The most deadly question: legality

At this communication meeting, Xiaomi produced a trick that could be described as a killer: Demonstrating on-site how LeTV will play video resources on the Internet directly through the chain. However, in Radio 181's previous document No. 181, it has been expressly forbidden for any television or OTT box to provide users with services to directly broadcast Internet video resources. Therefore, this is also considered as the red line of policy.

Wang Chuan said that there are still other problems with LeTV. For example, none of the interfaces on the UI interface and program information could see any of the logos belonging to the 7 major broadcast platforms, but only their own “letv LeTV” logo. So Xiaomi has reason to question LeTV's legal compliance.

The core problem: quality of content

Xiaomi's second source of doubt is in fact questioning LeTV's profit model. In the business model that LeTV pursues, whether it is a TV business or a mobile phone business, it should not make money by selling hardware. The main source of profit should be users' purchase of audiovisual content.

Therefore, LeTV's pricing is entirely based on the "hardware + content service fee" model. Consumers are required to purchase content service fees ranging from 1-2 years depending on different products while purchasing TV sets. The annual service fee is priced at RMB 490.

Xiaomi’s second third question attempts to fundamentally negate LeTV’s business model. First, LeTV does not adopt the internationally popular subscription payment model. Instead, it imposes bundled fees, which must be paid by the user when purchasing hardware. Pen content service fee, there is no choice. Second, LeTV has even fewer content than Xiaomi's free content.

If users accept Xiaomi's view, it means that LeTV will become uncompetitive in the minds of consumers. The business model that LeTV has been painstakingly built will also be completely negated.

In fact, the initial motive for Xiaomi’s planning of the conference was to conduct a full-scale surgical bombing of LeTV’s business strategy and even financial reports, and to expose more inside stories, extending “Tear-Force” from the product level to even more. Deep areas. However, Wang Chuan stated that “LeTV’s senior executives communicated with them urgently because of fear of influencing share prices. Therefore, Xiaomi finally decided to temporarily change the content of the meeting, limiting the scope to the product level and the three previously asked questions.”

"Stop restraint, leave room for the other side." Wang Chuan used this vocabulary to summarize after the meeting.

But whether or not it really reserved a bit of room for LeTV. The three questions raised by Xiaomi can be said to be fatal, and it is not for LeTV to continue to evade. On a late evening, LeTV made a statement: “We will respond to the three questions of our friend to naive tomorrow (16th) at 14:00.”

Millet tightly dig music corner

An industry veteran of the color TV industry, who declined to be named, told NetEase.com that behind the continuous upgrade of Xiaomi and LeTV is actually reflecting the various setbacks encountered when these two Internet companies entered the field of color TV. Whether it is millet or LeTV, it has now reached a more critical time node. If there is no explosive growth in their sales in the coming period, they will face very embarrassing situation.

Since LeTV announced its entry into the color TV industry in 2013, it has been trying to appear in front of consumers as the image of the traditional manufacturer “subversive”. According to relevant data, LeTV’s total sales volume in 2014 was 1.5 million units. Although LeTV has been placed in the second group’s camp, it is still not up to the five traditional TV companies TCL, Skyworth, Hisense, Konka (aggregate reading) and Changhong. Small distance. It was revealed that Jia Yueting had issued a dead order for sales of 3 million units for LeTV this year, because this figure will directly affect Levi’s survival and future.

However, LeTV has encountered many problems at the moment, such as the emergence of new products at the product level. "Looking this year's new television products have already been ready at the hardware level, and the negotiation and negotiation of the broadcast control platform have also been finalized. However, there is still no movement to explain that some of the more thorny issues have arisen in certain review processes." Netease appliance said. Xiaomi did not publicly announce TV sales figures, but according to reliable sources in the upstream supply chain, its shipments were 300,000 units.

Even considering the limited production capacity of Xiaomi TV's initial stage and the relatively monotonous product line, this performance is still somewhat unfavorable relative to the market performance of Xiaomi's mobile phone and Xiaomi's box, not to mention the comparison with LeTV. On the one hand, Xiaomi has continuously improved the product lineup of televisions, gradually increasing the penalties of 55 muscles. On the other hand, it seeks content growth and advantages through various means, including the well-known ones. The US dollar makes strategic investments in video content.

Wang Chuan had previously said in an interview that Xiaomi TV has reached the passing line in both audio and video performance and content. Implications beyond words In the next stage, Xiaomi TV will pursue faster development and achieve growth from “pass to excellent”.

“Although Xiaomi and Leshi have always emphasized that their products are low in price, high in configuration, and rich in smart applications, in reality, their target users have many similarities in many aspects, and loyalty to brands is not like traditional color TV brands. The users are so strong. Under the background of the overall downturn in the consumer TV market in 2015, it is easier for them to grab higher customers than to grab customers from traditional TV companies. The purpose of Xiaomi’s intention is to pull the people who are preparing to buy LeTV to his own side, and even let those who bought the LeTVs buy the millet box and cut off the revenue of LeTV’s service fee. The contest has nothing to do with Lei Jun and Jia Yueting’s personal ideals. It is only an inevitable process under severe market competition,” the industry analyst analyzed.

Therefore, one thing that can be confirmed is that, regardless of how LeTV will respond on the afternoon of the 16th, this torment will not stop there. (Text/Hou Weijun)

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