Is the crocodile involved in the OTT set-top box industry?

But anyway, from the point of view of Xiaobian, I can't live without Tencent. Regardless of Tencent QQ, one of the software that must be opened every day in addition to the browser. Or WeChat, the mobile phone is a must-have software every day. Tencent extends to more than enough people in one place.

Youku, iQIYI, and 56 videos are all outstanding online video websites. Tencent video is a powerful opponent that cannot be ignored. At the recent Tencent Video V Vision Conference, Tencent Video not only released the 2015 content strategy, but also disclosed the Tencent video for the first time another big move - the formation of the OTT sector, will soon launch boxes and other products. According to report, Tencent Video is the OTT department established in the second half of this year and is responsible for the smart living room area.

Under the influence of such harsh policies, Tencent also entered the market under the general trend of the industry without any confidence from all parties. This is really unexpected. But thinking about it again is a normal situation.

We chose an atypical B2B company to analyze the state of the Internet STB industry and may be more representative. According to the "Guidelines for Industry Classification of Listed Companies" (2012 Revised Edition) promulgated by the China Securities Regulatory Commission, Huada Technology is located in the "Manufacturing, Computer and Communication and Other Electronic Equipment Manufacturing Industry" industry. The company's main business is the development, design and sales of digital television equipment. The company's main products include high-definition set-top boxes, smart set-top boxes, stream push system, OTT media distribution system. The main consumer groups of the company's products include individuals, families, and businesses.

1, the advantages of research and development capabilities

Huada has strong technical research and development capabilities, formed a market-oriented, customer-oriented rate of R & D management model. In the field of smart set-top boxes, the company has acquired Playready/Verimatrix/Widevine DRM certification, and has implemented CA such as Yongxin Vision, Quantong, and Sanzhou Centrino, and has realized the functions of remote management, upgrade, and information release of intelligent set-top boxes in intelligent set-top boxes. The field has a certain leading edge. As of June 30, 2014, the company had 7 patents, including 6 invention patents and 1 utility model patent. At the same time, he has 10 software copyrights.

2, market advantages

After years of development, Huada has accumulated a certain market base and formed a certain degree of customer acceptance. In the domestic market, the company has established a good customer system in Beijing, Shanghai, Hunan, Guangxi, Liaoning, Jiangxi and other provinces and cities; in foreign markets, the company is in Brazil, Argentina, Chile, Russia, Germany, Poland, Hungary. Countries such as Finland, Thailand, Indonesia and Cambodia have established a relatively complete agency and client system, which will lay a solid foundation for the company's subsequent development.

Huada Technology is a typical R&D and sales dumbbell-type enterprise, focusing on the development and management of R&D and sales channels, and adopting external association mode in the production process. In terms of R&D, in 2011, 2012, and 2013, Huachenda’s R&D expenses accounted for 13.71%, 13.81%, and 14.54% of its operating revenue, respectively, and its investment in R&D expenses was relatively large. In terms of market development, the company is Many domestic provinces and cities have established a better customer system and built an agency and customer system in foreign markets.

Driven by industrial convergence and new generation of information technology, the upgrading of digital television industry structure and the speed of business innovation are accelerating, and the traditional set-top box market has begun to shrink, while the network set-top box has become a development trend. The dumbbell-type model helps companies to closely connect with the market, agilely capture market changes, and develop new products based on industry trends, thereby improving their overall profitability.

Summary: The gradual improvement of OTT industrial policies, to a certain extent, does indeed lead to a very difficult situation for certain companies with "connotations" in the industry and even gradually decline. However, on the other hand, with the guidance of policies, the ecological development of the industry will move toward a more healthy stage, including the respect for copyright, respect for the creation of original film and television audio, and a better work will be born.

The network set-top box is based on sufficient and high-quality video and audio resources, so more users will switch to using network set-top boxes. This is the case in foreign countries. The above-mentioned "Huataoda Technology" network set-top box companies' profits are largely derived from foreign markets, and the domestic market will begin to slowly move toward this trend.

It is not difficult to pry in, and Tencent’s entry into the OTT market is a great opportunity to see the market embark on the pay-off era under the administration of the General Administration of Administration.