Storm Haier join forces: Internet companies will dominate the television industry?

The preparations for the suspension of storm science and technology for the past three weeks have finally led to “disclosure” - an Internet TV joint venture will be established with Haier Electronics. "China Business News" on July 2 was informed by industry veterans that Haier Electric will either take out the commander's TV business for a joint venture, and Storm may be holding this new joint venture.

"Commander" is Haier's Internet sub-brand. Liu Weiping, the general manager of China-Original TV China Marketing Corporation, joined Haier this year and became the partner of the commanding TV business. Under the background that Haier has accelerated the transition to platform-based enterprises and encouraged employees to start businesses, the commander’s TV business also wants to integrate social resources and seek greater development.

According to the above-mentioned industry veterans, the joint venture established by Storm Scientific and Haier's commanding TV business will be handled by Liu Yaoping and operated according to the Internet company model. It is expected that there will be two operation centers in Qingdao and Shenzhen. Among them, the Qingdao Operations Center is responsible for logistics distribution and after-sales services; the Shenzhen Operations Center is responsible for content operations and communication marketing.

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The joint venture and cooperation between Storm Scientific and Haier Commander may also introduce third parties. According to industry rumors, Aofei Animation will become a strategic investor in the new joint venture. In this way, a complete industrial chain of content production, content playback, production and manufacturing, sales and distribution, and after-sales services is formed to create an entertainment ecosystem.

The reporter tried to verify Liu Yaoping’s rumors but failed to contact him.

In the announcement on the evening of July 1, Stormwind Technology said that it had signed a framework agreement with Haier Electric on June 30 for a joint venture to operate the Internet TV business. Stormwind Technology provided content, software system development and operation, and Internet marketing support; Haier Electric will use supply chain management, logistics, sales channels and other advantages. Both parties will sign a formal investment agreement as soon as possible. Therefore, the details of investment entities, investment amounts, and cooperation methods still need to wait for the further disclosure of Storm Technologies.

It is understood that the commander TV service is only part of Haier's overall TV business. Unlike the “commander” television business on Haier Electronics, the “Haier”, “Kasa Di” and “Modular Card” television services are still on the Haier Group, the parent company of Haier Electronics. The Haier TV business is currently cooperating with Alibaba to promote Alibaba Cloud TV. The rumor in the industry does not rule out the possibility of the Haier brand TV business establishing a joint venture with Ali.

Since the beginning of this year, the smart TV industry has been surging, and joint venture cases have continued to increase. In June, Oriental Pearl and Haier Electric just participated in the private placement of Siu Chi shares and became the second and fifth largest shareholder of the latter. The three parties will launch Internet TV with the “Content + Channel + Hardware” model and operate it. There are rumors that Lenovo's TV business may also be a joint venture with Ali.

"From cooperation to joint venture is a major feature of this year's Internet TV industry," Dong Min, general manager of AVC's black power division, analyzed with the reporter of the "First Financial Daily" that this was based on the demands of both parties: On one hand, with the domestic TV market entering the consolidation period, traditional TV plants have encountered bottlenecks, sales, profits, and operations have all experienced difficulties. On the other hand, Internet video companies, inspired by music, also want to cut into color TV terminals to better grasp Live user traffic entrance.

In the past two years, the smart TV industry has cooperated extensively. For example, TCL cooperated with iQiyi on TV+, Skyworth Cool Open and Ali together pushed Ali TV. Dong Min believes that traditional TV plants are pursuing sales growth, and content operation is only a value-added part; while Internet companies are concerned about traffic entrances, not TV sales, there will be disagreements in cooperation. Therefore, the industry seeks deep-seated capital cooperation. Once joint ventures, television plants and Internet companies will form a true community of interests.

However, with the penetration of BAT and TV in the TV industry, will the Internet companies dominate the TV industry in the future? In Dong Min’s view, the TV industry divides “old companies” and “new companies,” and the old companies are traditional. In color power plants, they will continue to expand the sales volume of TVs, earn profits through hardware, and further expand their businesses with profits; and new companies that integrate more Internet genes, they will boost investment through investment, and they will focus on seizing traffic inflows without emphasizing hardware. Profitable, target users are locked in to audience segments of the market segment. "In the future, these two modes will coexist and gradually merge with each other."



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