In 2017, the domestic television industry experienced a slight slowdown. During the first half of the year, rising panel prices prompted TV brands to increase their prices, which initially impacted sales. In the first half of 2017, domestic TV sales reached 21.81 million units, a 7.3% drop compared to the previous year (Owe Cloud Network). Although the market showed some improvement in the second half, it failed to fully recover from the overall sluggishness. Annual sales were expected to be around 48 million units, far below the 50 million mark achieved in 2016.
The key focus of the TV industry in 2017 was LeTV. After four years of rapid growth, LeTV faced a setback and quickly lost its market share. While its peak was short-lived, it marked a permanent shift in the Chinese TV landscape: consumers began prioritizing content over hardware; TV brands started emphasizing user metrics like boot times and operating efficiency; and internet TV advertising revenue saw exponential growth, eventually surpassing traditional TV ads.
Looking back at 2017, it's clear that technical barriers between TV brands have become increasingly blurred, while content barriers remain high. This trend continued into 2018, with many brands focusing on OLED, QLED, 8K, and laser TVs, leading to product homogenization. However, content remains tightly controlled by each brand, creating silos that prevent cross-platform sharing.
Internet TV brands are expanding their content libraries by partnering with platforms like Tencent, iQiyi, and Youku. Despite this, no two brands have ever shared content, which contradicts user needs. Consumers want access to the best possible content, not limited by platform boundaries.
Policy restrictions and rising copyright costs have further complicated the situation. The General Office of Optoelectronics has drawn a clear line between online and digital TV, making content unification difficult. Major content providers like iQiyi, Tencent, and Youku belong to different camps, making collaboration unlikely. Meanwhile, platforms like PPTV and Mango TV maintain their own exclusive content, deepening the fragmentation.
With the cost of content production rising, platforms are investing heavily in original dramas. Hits like “The Great Wall,†“Crime Without Cards,†and “Spring Breeze Is Not as Good as You†have proven the value of content-driven strategies. As a result, platforms are more inclined to keep content fragmented, maximizing their competitive advantage.
Consumers are now constantly seeking a second screen. The average TV update cycle is 5–7 years, while internet TV updates occur every six months to a year. With weekly trends in TV shows and variety programs, the demand for flexibility and access to diverse content is growing.
LeTV serves as a prime example. After losing over 10 million users due to poor content and service, trust in the brand declined. LeTV lacks the resources to acquire major copyrights, and even its sports rights are almost sold out. Its once-advantageous content offerings have faded, widening the gap with competitors like Tencent and iQiyi.
What should LeTV do after its user base declines? Renewals are unlikely, and changing the TV itself is impractical. Given the industry’s reputation for quality, these users are naturally looking for alternative screens.
Data indicates that the main TV consumers in China are aged 24–36, often newlyweds or new parents who grew up with the internet. They seek new technologies and experiences, which puts pressure on content platforms to evolve. Many Internet TV users have left due to dissatisfaction, creating a demand for secondary viewing options.
Finding the right second screen is challenging. Users try various methods, such as TV boxes, third-party apps, and screen mirroring tools. Recently, iQiyi TV has gained popularity, ranking third in JD Mall after Xiaomi and Honor boxes. With strong brand presence, Huawei and Xiaomi dominate the market, but TV brands need to find unique value.
iQiyi TV is a smart casting device that aggregates content from iQiyi, Youku, Tencent, Bilibili, and even Baidu Cloud. It supports gaming, photo browsing, and more. Unlike traditional boxes, it solves compatibility issues and offers a seamless experience. According to JD data, 60% of iQiyi TV buyers are smart TV users, while 40% are traditional TV owners—unexpected numbers that challenge common assumptions.
According to iQiyi representatives, the device can function as a TV box or a smart projector accessory. It covers all major platforms, supports files and games, and is compact, requiring only a TV and USB port. It doesn’t take up space, making it ideal for modern homes.
In conclusion, the demand for a second screen continues to grow, pushing internet TV brands to adapt. The solution lies in cooperation and building a unified content matrix, which would enhance AI development and data collection. However, historical alliances between TV companies have often failed, and future collaboration will require bold decisions and strategic thinking.
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