The winter chill in Beijing is mirrored by the cold reality facing Internet TV brands. Recently, several companies have been exposed for defaulting on supplier payments and making significant layoffs, signaling a deep crisis within the industry. In the past few years, these brands thrived by offering low-cost hardware, smart systems, and rich content. However, as LCD panel prices rose, they found themselves caught in a price war that led to heavy losses.
At its peak, Internet TV held 20% of the market share, but recent data shows it has dropped to just 10%, raising serious questions about its business model. The sector is now under intense scrutiny, with reports of unpaid wages, delayed settlements, and financial struggles. Employees shared screenshots online, revealing internal chaos and frustration. One company, Shangshang, responded by confirming internal restructuring and a temporary halt on new product launches, while also acknowledging delays in project funding.
Despite being backed by major players like Global Zhida, Chinese media, and Guangdong, the brand is struggling to maintain its momentum. Marketing efforts have declined, and even during the “Double 11†shopping season, the company took a conservative approach. Founder Fu Qiang once aimed for 10 million users by 2018, but whether this goal can be achieved remains uncertain.
This situation is not unique to one brand—it reflects the broader decline of the Internet TV market. Once booming with aggressive pricing and content-driven strategies, many companies are now facing a harsh reality. The model of "small profits but fast turnover" no longer works, and the industry is entering a period of consolidation.
Since 2013, brands like LeTV and Xiaomi dominated the market, drawing in investors with promises of innovation and affordability. But by 2015-2016, the competition turned brutal, with manufacturers selling TVs at a loss just to gain market share. As LCD panel prices surged by 50%-100%, profit margins shrank, pushing many companies into financial trouble.
Experts point to multiple factors behind the downturn: weak supply chains, overreliance on capital financing, and a lack of innovation. According to Lu Jiebo from the China Electronic Chamber of Commerce, the market is now dominated by traditional brands, with only 10% of the market left to Internet TV players.
Companies like Stormwind TV have suffered massive losses, with net assets falling into negative territory. Despite recent fundraising efforts, the financial gap remains wide, and survival is still uncertain. While some hope for a turnaround by 2019, the road ahead is unclear.
As the market shrinks, traditional TV manufacturers are adapting by launching their own smart brands, such as Skyworth Cool, Konka KKTV, and Hisense VIDAA. These companies are closing the gap, making it harder for Internet TV brands to compete. With fewer advantages and growing challenges, many are expected to disappear in the coming years.
In the long run, experts suggest that Internet TV must move upmarket, differentiate itself through technology, and build strong brand value. Price wars won’t save them—only innovation and quality can. Some companies, like LeTV, are already shifting toward high-end models and expanding their offline presence, aiming to rebuild their position in the market.
The future of Internet TV is uncertain, but one thing is clear: the era of cheap, low-quality devices is ending, and only those who adapt will survive.
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