[Industry News] CIBN Pays Strength: 2015 Goes into OTT First Camp

At present, in the domestic television industry, Internet TV, online video, and video websites are still among the hot topics. So, what are their development trends? Perhaps all parties have their own views on this. Then, what are the views of the key camp of Internet TV integrated broadcast license holders on the industry trend? Based on this view, what are the development plans? In response, the reporter interviewed Fu Qiang, the deputy general manager of CIBN Internet TV.


First, OTT develops three major trends and reinterprets

In the interview process, Fu Qiang elaborated on the three major trends he observed in the future development of OTT in China:

1) Under the further clarification of the regulatory policy, the video site will cooperate with licensees in depth and use various advantages to do better and better services. This time point is not necessarily in 2015. It is even a trend that continues for several years. The major commercial platforms, commercial websites, and state-owned units deepen cooperation, and then integrate and re-fertilize and continue to integrate.

2) The rise of smart hardware, this year will be the first year of the Internet TV integrated machine. More and more companies will be able to layout TV sets. The second half of this year and the end of next year will be a lively market.

3) In addition to video services, there will be many new games that will come out. In the ensuing period of time, a large number of traditional service providers will enter the OTT market, establish a series of service systems on OTT, and seize TV screens. CIBN Internet TV is very much looking forward to working with this group of manufacturers to create more new OTT games together.

Second, CIBN Internet TV to become the first camp of OTT, 3 major advantages are significant

Talking about the concept of the Internet + proposed by the Prime Minister, Fu Qiang admitted that the Internet is not saying that everything is changing. The key is how to use the Internet as a tool to develop this industry. OTT itself is a product that integrates closely with the Internet. The current subversion and revolution have not been a case of complete success. It is necessary to make the Internet + "+ Internet" and speed up the migration of traditional industries to OTT and OTT and other industries. Rapid integration, this should be the role of the Internet +.

Fu Qiang said that the planning for the 2015 target is highly consistent with the Internet+, and CIBN Internet TV itself is the Internet industry. In 2015, CIBN Internet TV is based on the development of industrial ecology under a deep layout. From addition to multiplication, this year's user goals are very intuitive. In order to achieve a win-win situation for the entire platform, OTT will enter the first camp as soon as possible.

In the explanation of Fu Qiang, the reporter believes that CIBN Internet TV has the following three major advantages:

1) Legal compliance. CIBN Internet TV started relatively late and there was no burden. There is a newly constructed integrated broadcast control platform, which complies with laws and regulations in accordance with the provisions of the State Administration of Taxation. It has always been a very thorough platform for the implementation of the 181 document. It has worked closely with the major regulators and has done a good job in product standardization.

2) The industrial layout is very complete. From August last year to nearly a year this year, we have made quite a few friends. From content to e-commerce to game applications, including smart homes, etc., CIBN Internet TV is leading from the industrial layout.

3) Efficient team. CIBN's Internet TV team is very young and has a close connection with the entire Internet. It is an entrepreneurial, motivated and experienced team (a group of people who are familiar with the Internet, understand radio and television, and understand the OTT industry).

The combination of the three major advantages, together with the advancement of the national media integration policy, will create a comprehensive system advantage that will allow CIBN Internet TV to have confidence in making this matter more in-depth.

Third, in Q3 2015, new products will be released

In the first half of this year, CIBN Internet TV released its brand new intelligent terminal product brand - CAN. Including the CANTVF55 and CANTVC43, the 55-inch and 43-inch Full HD network smart TVs are highly cost-effective compared to similar products in the market. In addition, two TV boxes have been released, of which the CANboxC1 is priced at 248 yuan, and the CANboxF1 is a high-quality 4K box, priced at 298 yuan.

Fu Qiang said that only half of this year has just passed, and the entire CIBN Internet TV layout is still deeply integrated and fermented. There will be many new concepts in the second half of the year and there will certainly be many new ways to play. For new products, CIBN's Internet TV services will be integrated this year, and the level of user services will be further improved. CIBN Internet TV hardware will be combined to provide better services with partners. Q3 will release new products.

Fourth, China OTT profit model - high quality program

So far, China's OTTs have provided almost free services. The profit model has become a topic for the industry to think together.

Fu Qiang stressed that the existence is reasonable, starting from online video services, basically to win the world free of charge. As long as there are free forms, charging is more difficult. However, within a certain period of time, the existence of the OTT free model is reasonable, and future profit models will also exist.

For example, now IGI, Sohu, PPTV, and now there are many member films, the conversion rate of the members of the major video sites is gradually increasing, and the return rate of free advertising is also increasing, the future in the video content will form a 28 In principle, 80% of the free plus 20% premium content is paid. As the major video sites and major content providers have become less and less, the alliance can be formed in the future and the principle and time for free and fee collection will be unified. The following two major trends will emerge in the future: 1. Through the alliance between video sites, 20% of the new films will be subject to membership fees, 80% of the programs will be free, which will attract traffic and realise traffic flow. 2. Many video sites will be broadcast alone and will also be added. The intensity of self-control content will also become a good profit point if it is not based on system content.

Contrasting video websites and returning to the OTT set-top box, Fu Qiang believes that OTT's profit model is mainly to use 80% of the free content in exchange for traffic, cash flow is realized, 20% of new content is paid, attract users, but it should be noted that The OTT set-top box is centered on a large screen. The video content must achieve high quality, improve video service quality, improve clarity, and the user is willing to pay for premium video programs.

To achieve profitability, we must first solve the set-top box itself. The set-top box is the carrier of the service: First, the set-top box must carry certain services, for example, 4K. Secondly, the cheaper set-top box on the market is better for selling. Therefore, high-quality, high-performance, and multi-functionality must be achieved within a certain range of costs. The CPU must be strong and need to carry more value-added services, such as video games. In addition, 4K decoding, HDMI2.0, H.265 are all necessary for a good box.

In addition to services, set-top boxes should also carry services and applications that have adhesiveness. Fu Qiang believes that it is not possible to simply sit in the home to serve the user, but to communicate with the user and see the needs of the user. For the second and third tier cities, 80% of the users' demand is mainly video, so the video must be done well first and then done well. However, in the future, there is still a need for characteristic services. Now, the majority of children sitting in front of the TV are old people and children. For children, they mainly do children's programs, and do more health programs for the elderly. For younger users, it is necessary to improve the operation level and catch new content.

In addition to other services outside video, Fuqiang is more optimistic about TV shopping, such as T2O, and it is necessary to present real quality services to ordinary people. For example, discounted time, convenient living, group purchase, etc., what really brings benefits to the people is Really meet the needs of users. The other is the big screen game, there is news in the subdivision field, these are some adhesiveness services for users.

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