In 2019, the smart high-definition TV market has been bleak. Facing the exhausted market demand, many TV companies are anxious about the prospect. But 2020 seems to be a turning point, and it turns on or alarm in the TV segment.

Affected by the epidemic, the response to the capital market is very strong, and many sectors are struggling. The growth of the smart high-definition TV industry against the trend is amazing. You know, the retail sales in 2019 were 134 billion yuan, a year-on-year decrease of 11.2%; the total retail sales of color TVs were only 47.72 million units, a year-on-year decrease of 2%; the industry average price was 2,809 yuan, a new low in ten years.

In the face of continued sluggish market performance, why is the capital market still optimistic about the smart HDTV market?

Epidemic stimulus

Reasons can be divided into short-term stimulation and long-term reasons, and for the former, we can naturally attribute the outbreak to the prolonged stay at home. Due to the strong contagiousness of the epidemic, the space for daily activities of users is compressed within the scope of households. In this case, smart high-definition TVs have the unique advantage of large screens, which provide a better experience than mobile content presentation at the end of the period. Not only that, as a family "public screen", smart high-definition TV also has the function of contacting family members, so the frequency of use and residence time are relatively high.

With the iteration of technology, smart high-definition TV provides users with richer functions, and at the same time creates more complex scenes. In the short-term stimulus epidemic, smart TV user activity continues to be high. For the market, this means that smart TV OTT closed-loop marketing will have more exposure, and traffic will be converted into favor.

Compared with traditional TVs, the current business model of smart high-definition TVs has already shifted from a single hardware profit to a hardware OTT platform service. According to this change, the business of smart TV manufacturers is no longer a one-off sale, but depends on the sales and activation rates of both parties. After the stock market enters the game, traffic will become more important, and the epidemic will be a short-term catalyst.