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Tencent gets smart with television venture

Updated: 2013-09-25 07:21
By Gao Yuan ( China Daily)

Alibaba's smart TV products, co-developed with TV maker Skyworth Group, are expected to hit the market in October.

Meanwhile, Xiaomi Corp, a Beijing-based smartphone maker, has recently released a 47-inch 3D smart TV featuring a self-developed operating system.

Although the smart TV industry in China is in its infancy, some top players are already mapping out a profit model based on their major businesses, according to Zhou.

"Online video providers such as LeTV and iQiyi are betting on smart TVs to enlarge viewer numbers while Alibaba is trying to sell goods on its TV platform," Zhou added.

Chen Xudong, head of Lenovo Group Ltd's China business, said the top priority for smart TV vendors is to build up a product chain big enough to cover most buyers' demands.

"I don't think our smart TV unit is ready to generate profits anytime soon, the market is far from maturity and we need at least two more years to educate traditional TV users," said Chen.

Analysts said the future battleground for smart TV makers will likely be viewers' experiences and video content. Companies with no video resources should find a strong partner to supply enough programs.

 

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