Intense competition between internet firms, TV makers

Intense competition between internet firms, TV makers

Staff Reporter


Following on from the success of personal computers, mobile phones and tablet computers, the smart television market is now a major battlefield between internet companies and traditional television manufacturers. Statistics show that the number of TV viewers who spent at least two hours per day watching TV has dropped by 2% per year, and the majority of TV viewers are aged over 40, according to the Chinese-language Global Entrepreneur magazine.Traditional TV manufacturers will be eliminated from the market if they fail to integrate the internet into their products in order to attract new customers.

Internet firms have already established a group of users with personal computers and mobile phones, but now, they hope to apply the functions that are typically used on computers and phones to televisions.

However, it is no easy task to attract viewers from the younger generation.

Gong Yu, chief executive officer of Iqiyi, one of China’s largest online video platforms, noted that user experience, content, cloud computing capability and production of smart TVs currently on the market have not met public expectations.

In addition to the traditional TV viewing experience, smart TVs allow users to watch videos on the internet, replay TV programs, play games and shop online.

Traditional TV makers and internet companies set out with different concerns when manufacturing smart TVs. Traditional TV makers produce televisions from the perspective of their industry. They consider the specs of the televisions they want to produce to be their main concern.

For internet firms, on the other hand, more focus is placed on user experience. Their advantage is their ability to improve on their systems and their understanding of the needs of users.

The best smart TVs give users an outstanding experience, and innovation should be focused on the experience of “watching TV,” according to Wang Chuan, co-founder of Xiaomi, best known for its budget smartphone range.

User experience is not only decided by the operating system; content providers are also critical in managing the supply chain for smart TVs.

Collaboration between content providers and smart TV manufacturers is also crucial. Xiaomi TV partnered with China Network Television, while Alibaba’s Coocaa TV worked hand in hand with Iqiyi and Youku, and TCL also worked with Iqiyi.

The competition is not as simple as that between traditional TV manufacturers or among internet companies. Instead, there is competition in forming collaborations with suppliers in the production chain, such as hardware manufacturers and application developers.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (, the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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