After the startup advertisement disappears, TV prices may rise. Netizens shout to manufacturers: Don't narrow the path
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Nowadays, the probability of startup advertising has entered the countdown, and the overall fees for content and membership may also be reduced in the future. However, people may also need to re accept the increased prices of televisions
Nowadays, the probability of startup advertising has entered the countdown, and the overall fees for content and membership may also be reduced in the future. However, people may also need to re accept the increased prices of televisions.
Starting from August 2023, the State Administration of Radio, Film and Television, in collaboration with relevant departments, once again began to rectify the relevant issues, with stricter and clearer efforts and methods compared to the 2019 round. It also emphasized the importance of "being able to control and not rebounding". Behind the disappearance of startup advertisements and the reduction of membership fees, there is also a change in the pattern among different stakeholders.
LeTV pioneered TV startup advertising
Since LeTV released its first internet television in 2013, the television industry ecosystem has been restructured. LeTV executives have revealed that LeTV's revenue from startup advertising can reach 1.8 million yuan per day, and LeTV's overall revenue has significantly increased from 2.361 billion yuan in 2013 to 21.987 billion yuan at its peak in 2016. More than 40% of this revenue is from advertising and payment services. Adopting a similar model, Xiaomi has entered the television industry since 2013 and has become the top seller in China by 2019.
According to Liu Buchen, an analyst in the home appliance industry, traditional TV manufacturers including TCL, Hisense, and Skyworth, whether active or passive, basically joined this model of "hardware does not make money or only makes small money, relying on advertising and membership income to make money" around 2018.
Compared to the traditional model that used to rely on hardware to make money, consumers may experience a brief pleasure when buying TV at a low price, but in the subsequent use process, they need to pay to become members, skip advertisements, and watch more content provided by video platforms. From a consumption perspective, it is similar to a "sweet before bitter" experience.
For 10 years, Jia Yueting, the former 'initiator', has long ceased to be the boss of LeTV, but the subverted ecology has continued.
TV manufacturers may respond with price increases
According to the existing rectification plan, after the startup advertisement disappears, the number of nested fee packages in the TV will also be reduced by 40%, and on this basis, various membership fees will be reduced and standardized.
This means that TV manufacturers and long video platforms that charge considerable advertising fees will face certain impacts under the existing profit landscape. Especially for television manufacturers, the most intuitive change may be price increases.
Home appliance industry analyst Liu Buchen told the market that after this series of rectification, advertising revenue will decrease, and TV price increases will become a high probability event. "However, strictly speaking, it is not a price increase, just to restore prices to normal.
After the series investigation and rectification of smart TV startup advertisements by the Jiangsu Provincial Consumer Protection Commission in 2019, some voices believed that TV manufacturers were likely to respond with price increases, but the relevant rectification effects quickly rebounded, and the day of price increases has not yet arrived.
Liu Buchen believes that TV manufacturers may not make significant price increases for products of the same model, but may introduce a new model to the market after a certain "facelift" of a certain model, and mark a higher price. However, the ultimate effect is actually a price increase.
According to RUNTO data, in the first quarter of 2023, the 65 inch TV has become the largest best-selling size in the Chinese television market. The current price of domestically produced 65 inch televisions ranges from approximately 2000 yuan to 3500 yuan, while Sony televisions cost around 7000 yuan. However, 10 years ago, the price of domestically produced 65 inch televisions was at least twice that of today, while Sony 65 inch televisions cost over 20000 yuan.
As a comparison, the release price of iPhone 4 in 2010 was 4999 yuan, but over 13 years, even the standard version of iPhone 15 has increased by 20% to 5999 yuan.
Netizen: Just don't buy it
Many netizens have expressed that they have long stopped watching TV and decided not to buy it.
Comprehensive Sina Finance and comments from netizens
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