LeTV will impact the video industry and the hardware industry in two ways through the radical strategy of buying hardware for members. Earlier, LeTV had launched the "ecological subsidy hardware" strategy. For example, it bought one year of LeTV members (499 yuan) and TV hardware reduced 300 yuan. At that time, many people in the industry discussed the hardware-free model. Letv finally started to take this step, introducing the intelligent terminal industry into the hardware-free era. While LeTV will launch the first shot of "hardware free", it will undoubtedly challenge traditional household appliance enterprises through its ecological advantages, and its ecological model will also have a tremendous impact on the video industry.
Better Cultivate Netizens' Paying Customs and Promote Changes in Traditional Consumption Concepts
Different from the traditional payment traditions of foreign audiences, the domestic video industry has long relied solely on advertising to generate revenue. The video payment service has not been favored. On the Internet, cultural products such as dramas and movies, the Chinese consumer groups used to enjoy free lunches. However, the trend of improvement in recent years has become more apparent. On the one hand, the copyright awareness at the policy level and the industry level has become stronger and stronger. On the other hand, the value of content IP has become increasingly prominent. The increase of national income makes the user's demand for entertainment consumption stronger and the awareness of user content payment is sprouting. According to statistics, the number of paying members of domestic video websites has grown by over 700%. Coupled with the better economic conditions of the new generation of users, the pursuit of premium content is even worse, they are willing to pay for idols and premium content.
Let's regard today's hardware as free ideas, which will promote the cultivation of users' habits and the users' understanding of valuable content payment. Because after pushing down the barriers to the basic value of hardware, it is easier for more people to get rid of barriers to hardware costs to discover the new use-value that is carried in the hardware. This is a snowball-type cycle. The deeper the user's value is digging, the more users will come in and will eventually change from quantity to quality. This will result in reconstructing the membership value and thoroughly introducing the user's habits into the membership system.
After the hardware is free, it will promote the payment habits of netizens, but the deeper significance lies in promoting people's value change from the traditional consumption concept to the ecological consumption concept and the search for deeper Internet service consumption concepts.
Hardware is free, LeEco disrupts the pricing system of the traditional home appliance market
In addition, for the traditional manufacturers, hardware has a certain physical cost, and it is not realistic to want to be completely "free". After LeTV started to transfer profit points from hardware and channels to content and services, it would be disruptive to traditional manufacturers. The reason is that hardware does not make money or even lose money, but the total yield is still much higher than traditional TV manufacturers.
In addition, LeTV promotes applications with promising applications and promotes the introduction of valuable users with partners through a huge paid user base accumulated by hardware.
For example, LeTV and TCL cooperation will jointly build a membership system to create new commercial value and build China's largest smart big-screen advertising platform. TCL will provide LeTV with 1.2 million LeTV Super TV manufacturing guarantees and 500,000 panel security, sharing ecological content and cloud platform capabilities. For TCL, content protection and video experience protection are on the one hand, and it is important for valuable users to import.
Currently, LeTV already has a number of businesses including film, music, sports, television, mobile, automotive, cloud computing, and internet finance. Many businesses rely on high-quality content to link up and achieve soft and hard integration. For the hardware industry such as TV, mobile phone, wearable device, even car, all may be impacted, that is to say, the smart device is more a tool to access the digital life in the future, the premium attached to the hardware is less and less. It can be said that relative to pure hardware manufacturers, LeTV disregards the traditional home appliance market pricing system, users will choose better quality free hardware and package fee-paying members of the video service. Users will be more inclined to pay for richer content and more valuable services instead of paying for hardware brand premiums and costs.
The member model of the entire video industry will consider how to deal with the impact of music as
Relatively Youku, Iqiyi and other rivals, LeTV's competitiveness lies in a unified hardware and software ecosystem. The efficiency of this ecosystem, in Leshi resorted to hardware free trick, let free hardware become the user access to the service, compared to other video membership system, the user will obviously choose to add free hardware membership service system.
Therefore, the service system built by LeTV's membership system requires users to purchase wallets. However, in the end, its price/performance ratio is superior, and the overall advantages are the strongest, thus bringing greater user stickiness. From the industry perspective, Youku, Iqiyi and other video sites have been unable to break through the membership mechanism. LeTV has provided another model of membership that can be used for reference. However, this model cannot be used for reference, because in the final analysis, Compared to other video sites, there is LeEco ecosystem to bless this service. After the hardware is free of charge, LeTV pays attention to the users on the hardware and software member payment side, which is worthy of caution from other manufacturers.
The industry impact that this may cause is that the entire video industry's membership model will consider how to deal with LeTV's impact, such as choosing to reduce its own membership service fees or adopt innovative member payment content system to deal with, that is, the profit model of the video industry. Will be impacted.
Hardware into the best service entrance LeTV member value to rob users
We know that LeTV is a combination of software and hardware. The ultimate goal of such vendors is to acquire users. To obtain users, we must maximize the value of users. How to maximize? Of course, the free hardware users are on the one hand, and more importantly, the value of the members, whether tailored to user needs and pain points. In the past, the earliest attempts of video websites to try out user payment services were on-demand movies, monthly subscriptions for members, and HD live broadcasting at concerts. However, as the content IP model becomes mainstream, users' mainstream needs and pain points are also changing. From the past, simply paying for content and advertising, until now users are not satisfied with becoming pure content consumers, and expect more in-depth participation and interaction. LeTV is based on insights into the escalation of consumer demand, and creatively debuts the CP2C model to allow members to participate in the entire process chain of IP development, production, and distribution. IP mortal biography.
At present, LeTV’s ultra-video service is almost based on these pain points. For example, LeTV’s exclusive video and exclusive online broadcasts and online movies are aimed at male audiences. There are movie theaters with billions of boxes at the box office and Hollywood studios. Customized live sports events; for female users, select 1000+ Hollywood movies, American dramas, British dramas, Korean dramas and other high-quality overseas content for the entire year, 50 exclusive live broadcasts for domestic and foreign music, and exclusive high-quality 3D library. Multi-screen scenario service sharing, member-viewing videos without advertising, members enjoy exclusive services provided by LeSports Ecology.
LeTV’s content expansion strategy is undergoing radical advancement. LeTV’s various IPs can be consolidated through Huafan’s film and television and LeTV. At present, LeTV’s latest action is LeSports’ winning more than 310 events worldwide, and over 10,000 events throughout the year. In the live broadcast, 2.7 billion won won over the next two years. LeTV is also taking the initiative to separate super sports members from existing super movie and television members and create new high-quality service products exclusively for sports fans.
It is reported that LeTV will invest 10 billion yuan in content purchase and self-control in 2016, and this is only half of Lenovo's investment in creating a membership system, and another 10 billion will be used for the construction of ecological services.
In addition, the core value of LeTV 3.0 ecology is also reflected in the fact that an account can open up TVs, computers, mobile phones, Pads, theaters, cars, VRs, and achieve full coverage of content on one cloud and seven screens. It also enjoys super buying at multiple terminals at the same time. Hardware privileges, premiere, spot mapping, meeting with stars and many other exclusive privileges, such as the younger music users, will provide member welfare services, celebrity visits, offline themes, offline demolition services, Participate in large-scale roles and other unexpected activities. At present, one of the important aspects of the LeTV membership model is the two-way blessing and differentiation of services and content. This just breaks the normal status of the video industry's heavy content service and begins to step into a new stage of development where both content and services are equally important.
As long as there is a user, there will be a profit model based on the user, and the profit of the hardware will no longer be the core. If you do not earn money through hardware, and use hardware as a carrier of services to achieve profitability through membership service fees, this is undoubtedly closer to the most essential qualities of the Internet era. This is the iron law and economic law of the Internet age. LeTV's "soft-hard-combined" model maximizes the user value release and the subversive nature of the industry is more and more true.
Better Cultivate Netizens' Paying Customs and Promote Changes in Traditional Consumption Concepts
Different from the traditional payment traditions of foreign audiences, the domestic video industry has long relied solely on advertising to generate revenue. The video payment service has not been favored. On the Internet, cultural products such as dramas and movies, the Chinese consumer groups used to enjoy free lunches. However, the trend of improvement in recent years has become more apparent. On the one hand, the copyright awareness at the policy level and the industry level has become stronger and stronger. On the other hand, the value of content IP has become increasingly prominent. The increase of national income makes the user's demand for entertainment consumption stronger and the awareness of user content payment is sprouting. According to statistics, the number of paying members of domestic video websites has grown by over 700%. Coupled with the better economic conditions of the new generation of users, the pursuit of premium content is even worse, they are willing to pay for idols and premium content.
Let's regard today's hardware as free ideas, which will promote the cultivation of users' habits and the users' understanding of valuable content payment. Because after pushing down the barriers to the basic value of hardware, it is easier for more people to get rid of barriers to hardware costs to discover the new use-value that is carried in the hardware. This is a snowball-type cycle. The deeper the user's value is digging, the more users will come in and will eventually change from quantity to quality. This will result in reconstructing the membership value and thoroughly introducing the user's habits into the membership system.
After the hardware is free, it will promote the payment habits of netizens, but the deeper significance lies in promoting people's value change from the traditional consumption concept to the ecological consumption concept and the search for deeper Internet service consumption concepts.
Hardware is free, LeEco disrupts the pricing system of the traditional home appliance market
In addition, for the traditional manufacturers, hardware has a certain physical cost, and it is not realistic to want to be completely "free". After LeTV started to transfer profit points from hardware and channels to content and services, it would be disruptive to traditional manufacturers. The reason is that hardware does not make money or even lose money, but the total yield is still much higher than traditional TV manufacturers.
In addition, LeTV promotes applications with promising applications and promotes the introduction of valuable users with partners through a huge paid user base accumulated by hardware.
For example, LeTV and TCL cooperation will jointly build a membership system to create new commercial value and build China's largest smart big-screen advertising platform. TCL will provide LeTV with 1.2 million LeTV Super TV manufacturing guarantees and 500,000 panel security, sharing ecological content and cloud platform capabilities. For TCL, content protection and video experience protection are on the one hand, and it is important for valuable users to import.
Currently, LeTV already has a number of businesses including film, music, sports, television, mobile, automotive, cloud computing, and internet finance. Many businesses rely on high-quality content to link up and achieve soft and hard integration. For the hardware industry such as TV, mobile phone, wearable device, even car, all may be impacted, that is to say, the smart device is more a tool to access the digital life in the future, the premium attached to the hardware is less and less. It can be said that relative to pure hardware manufacturers, LeTV disregards the traditional home appliance market pricing system, users will choose better quality free hardware and package fee-paying members of the video service. Users will be more inclined to pay for richer content and more valuable services instead of paying for hardware brand premiums and costs.
The member model of the entire video industry will consider how to deal with the impact of music as
Relatively Youku, Iqiyi and other rivals, LeTV's competitiveness lies in a unified hardware and software ecosystem. The efficiency of this ecosystem, in Leshi resorted to hardware free trick, let free hardware become the user access to the service, compared to other video membership system, the user will obviously choose to add free hardware membership service system.
Therefore, the service system built by LeTV's membership system requires users to purchase wallets. However, in the end, its price/performance ratio is superior, and the overall advantages are the strongest, thus bringing greater user stickiness. From the industry perspective, Youku, Iqiyi and other video sites have been unable to break through the membership mechanism. LeTV has provided another model of membership that can be used for reference. However, this model cannot be used for reference, because in the final analysis, Compared to other video sites, there is LeEco ecosystem to bless this service. After the hardware is free of charge, LeTV pays attention to the users on the hardware and software member payment side, which is worthy of caution from other manufacturers.
The industry impact that this may cause is that the entire video industry's membership model will consider how to deal with LeTV's impact, such as choosing to reduce its own membership service fees or adopt innovative member payment content system to deal with, that is, the profit model of the video industry. Will be impacted.
Hardware into the best service entrance LeTV member value to rob users
We know that LeTV is a combination of software and hardware. The ultimate goal of such vendors is to acquire users. To obtain users, we must maximize the value of users. How to maximize? Of course, the free hardware users are on the one hand, and more importantly, the value of the members, whether tailored to user needs and pain points. In the past, the earliest attempts of video websites to try out user payment services were on-demand movies, monthly subscriptions for members, and HD live broadcasting at concerts. However, as the content IP model becomes mainstream, users' mainstream needs and pain points are also changing. From the past, simply paying for content and advertising, until now users are not satisfied with becoming pure content consumers, and expect more in-depth participation and interaction. LeTV is based on insights into the escalation of consumer demand, and creatively debuts the CP2C model to allow members to participate in the entire process chain of IP development, production, and distribution. IP mortal biography.
At present, LeTV’s ultra-video service is almost based on these pain points. For example, LeTV’s exclusive video and exclusive online broadcasts and online movies are aimed at male audiences. There are movie theaters with billions of boxes at the box office and Hollywood studios. Customized live sports events; for female users, select 1000+ Hollywood movies, American dramas, British dramas, Korean dramas and other high-quality overseas content for the entire year, 50 exclusive live broadcasts for domestic and foreign music, and exclusive high-quality 3D library. Multi-screen scenario service sharing, member-viewing videos without advertising, members enjoy exclusive services provided by LeSports Ecology.
LeTV’s content expansion strategy is undergoing radical advancement. LeTV’s various IPs can be consolidated through Huafan’s film and television and LeTV. At present, LeTV’s latest action is LeSports’ winning more than 310 events worldwide, and over 10,000 events throughout the year. In the live broadcast, 2.7 billion won won over the next two years. LeTV is also taking the initiative to separate super sports members from existing super movie and television members and create new high-quality service products exclusively for sports fans.
It is reported that LeTV will invest 10 billion yuan in content purchase and self-control in 2016, and this is only half of Lenovo's investment in creating a membership system, and another 10 billion will be used for the construction of ecological services.
In addition, the core value of LeTV 3.0 ecology is also reflected in the fact that an account can open up TVs, computers, mobile phones, Pads, theaters, cars, VRs, and achieve full coverage of content on one cloud and seven screens. It also enjoys super buying at multiple terminals at the same time. Hardware privileges, premiere, spot mapping, meeting with stars and many other exclusive privileges, such as the younger music users, will provide member welfare services, celebrity visits, offline themes, offline demolition services, Participate in large-scale roles and other unexpected activities. At present, one of the important aspects of the LeTV membership model is the two-way blessing and differentiation of services and content. This just breaks the normal status of the video industry's heavy content service and begins to step into a new stage of development where both content and services are equally important.
As long as there is a user, there will be a profit model based on the user, and the profit of the hardware will no longer be the core. If you do not earn money through hardware, and use hardware as a carrier of services to achieve profitability through membership service fees, this is undoubtedly closer to the most essential qualities of the Internet era. This is the iron law and economic law of the Internet age. LeTV's "soft-hard-combined" model maximizes the user value release and the subversive nature of the industry is more and more true.
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