The Christmas bell rings and 2019 is coming to an end. This year, China’s color TV market is still gloomy. Facing the current popularity of mobile devices and the rise of streaming media, TV seems to be a little outdated. Also reflecting this phenomenon, there is a lower and lower average daily power on rate of TV.
In 2020, facing the current era change and market pressure, where will the color TV industry go?
What do the two sets of data of 30% and 51% startup rate reflect
Grapefruit learned that statistics show that the average daily on rate of TV in China this year has decreased from 70% three years ago to 30%, and consumers over 40 have become the mainstream audience. This is not a unique phenomenon in China. Emarketer, a market research institution, also released its statistics this year. In 2019, American adults spent an average of 3 hours and 43 minutes a day using smartphones and tablets, 8 minutes more than they spent 3 hours and 35 minutes watching TV. This is the first time in history that Americans spend more time using mobile devices than watching TV.
In contrast, data show that the average daily startup rate of smart TV is 51%, the startup time is 348 minutes, and the proportion of young users under the age of 34 reaches 63%. Streaming media has transformed TV into a “large screen mobile phone” through TV box or built-in Internet function. According to statistics, the number of subscribers to streaming media platforms in the United States exceeded that of cable TV services for the first time in 2018, reaching 69%. The number of cable subscribers in the United States accounted for 65%.
Some insiders said that the decline in the daily average power on rate of Chinese TV and the rise in the daily average power on rate of smart TV seem to be contradictory, but in fact they are not contradictory: Although the power on rate of smart TV is rising, the number of people who choose TV as entertainment has not increased, but more people who originally watch TV choose smart TV, Therefore, the overall TV startup rate shows a sharp downward trend.
According to the data of China’s color TV market in the first three quarters of 2019, China’s color TV shipment in the first three quarters was 34.6 million units, a year-on-year decrease of 2.8%, of which the shipment in the third quarter was 12.2 million units, a year-on-year decrease of 7.4%, and the decline was further increasing. The sales scale of color TV sets is gradually decreasing, and the average price of color TV sets has also fallen to a new low: in the third quarter, the overall average price of color TV sets fell to 2678 yuan, and the online average price even fell to 1926 yuan. As one of the four major pieces of Chinese family, color TV seems to be gradually abandoned by the times.
Business expansion + renamed color TV manufacturers gradually extricate themselves from the quagmire
Data show that in 2018, China produced 160 million color TV sets, accounting for 70% of global shipments. Despite the slight increase in domestic sales, the retail sales decreased by 8.6% year-on-year, and the average retail price was 3121 yuan, a year-on-year decrease of 9%. At that time, some people predicted that the color TV market would improve in 2019, but now the situation seems to be getting worse.
In this context, many traditional color TV brand manufacturers have begun to reduce their investment in color TV business: Konka’s supply chain management business and environmental protection business account for the majority of the overall revenue in the first half of this year’s financial report, while the original main color TV business has fallen to the third place. In addition, Konka’s layout in white TV and semiconductors, Konka’s color TV attributes will be further weakened; The financial report of Hisense Electric showed that from January to September this year, the company’s total revenue was 23.644 billion yuan, a year-on-year decrease of 2.91%; The net profit attributable to the parent company was 265 million yuan, a year-on-year decrease of 21.1%. The profit of color TV business accounted for 88.43% of the total profit in the third quarter of this year, the lowest in four years. Hisense Electric has also been renamed Hisense video, demonstrating its determination to transform. The profits of other traditional color TV brands also declined this year, and the company also began to layout to smart home, white TV or upstream business of the industry.
Many color TV manufacturers have tried to return color TV products to high-end with the help of OLED display technology. When Hisense released stacked screen TV this year, it said it would “draw a clear line” with the color TV price war and adhere to the road of high-end color TV. However, the network price of 43 inch LCD TV has been as low as 999 yuan. When the whole industry is in the war of price reduction, it is undoubtedly impossible to blindly seek high-end.
Industry insiders told grapefruit that with the advent of 5g era, perhaps TV is no longer limited to the huge screen at home, but goes out of the living room and into other consumption scenes. Traditional TV may die out, but the concept of “TV” will be given a new definition. Taking the lead in finding a scene to re energize TV will become a new goal for color TV manufacturers in 2020.