May 04, 2024

China's OTT Box Industry Chain Summary Report for the First Half of 2016

The report reads:

1. Policy review: OTT industry entered the regulatory period, the policy continued to tighten 2. Market size articles: OTT box market retail volume in the first half of 2016 was 7.107 million units 3. Product Quotes: Alibaba Cloud Box Market share increased by 5.9 percentage points year-on-year 4. Upstream Chips: OTT Box Co-Opportunities The largest share of sales in SinoCrystalline 5. User behavior: The percentage of active users of smart terminals APP has gradually increased 6. Market Forecast: 2016 OTT box sales volume is 12.573 million units

In the first half of 2016, the retail volume of the OTT box market was 7.107 million units, a year-on-year increase of 19.8%. Affected by the implementation of the second quarter radio and television policies and the Alibaba New Deal, the sales volume in the second quarter was 18.2% lower than the first quarter. The number of brands sold on OTT Box Online was 123, which was a decrease of 38 brands in the first half of 2015. The number of OTT models sold on the OTT box line was 573, a decrease of 142 models in the first half of 2015. The number of new models listed on the OTT Box Online is 98, a decrease of 120 models compared to the first half of 2015.

I. Policy Review

It has been suggested that OTT is a strong policy-dependent industry in China, and the standard period of OTT industry after 2015. Ovid Cloud Network (AVC) made an inventory of regulatory actions and major industry events affecting the OTT industry in the first half of 2016. The content is as follows:

During the January-February period, due to the influence of “No. 229”, reports on the “Blasting of the OTT box for broadcasting and TV” were frequently reported; the first batch of 81 illegal third-party applications announced by the State Administration of Radio Film and Television were blocked, and Ali responded to the call of the state to activate black and white. List system; and the release of the smart operating system TVOS2.0.

In March, the State Administration of Press, Publication, Radio, Film and Television joined forces with 12 departments including public security, cybertrust, industry credit, industry and commerce, and quality inspection, and conducted a comprehensive program for illegal television network receiving equipment from production, sales, software downloads, and platform settings throughout the country. Clean up, seized a batch of illegal companies and so on.

On April 14, the Ministry of Industry and Information Technology took the lead in convening the “Initiation Meeting for the Enforcement of National Standards for Internet TV Receiver Equipment”. The launch of the hard standard setting will manage the terminal receiving equipment from the perspective of technical standards, and will change the current Internet TV terminals. Confusion, so as to achieve effective management of content entry. With the development and implementation of standard details, all terminal devices based on Internet TV must meet the standards in the future. At the same time, they must pass the product standard test before production. Otherwise, they will not be able to produce, sell, circulate, and use. .

In May, the State Administration of Press, Publication, Radio, Film and Television announced the management regulations for special networks and directed audiovisual program services (Order No. 6); the special management network for orders No. 6 and Internet TV services provided through the public network. Currently, “directed communication” mainly refers to Internet TV. The industry is commonly known as OTT TV. The issuance of the No. 6 Order will have a significant and far-reaching impact on the development of the audiovisual media industry in China.

In June, the news basically revolved around the investigation of the General Administration of Investigation and the infringement cases. Shandong Radio and TV Network Group conducted investigations in the form of interviews, questionnaires and symposiums. It advocated the turmoil of the OTT box market and urgently needed to strengthen supervision; the General Administration of Investigation strictly investigated OTT licensees and telecommunications. The IPTV disguised cooperation situation; Youku angered the music box as video infringement claims 6 million yuan compensation; radio and television report Apple APP Store can provide "Youku HD" application downloads and other events.

Whether these radio and television policies and industry events affect the development of the OTT industry, we analyze the OTT box market size, product status, upstream chip supply, and smart terminal user behavior as follows.

Second, the market scale

l In the first half of 2016, the retail volume of the OTT box market was 7.107 million units

According to the summary of the open bids for the top-level boxes (OTT IPTV) in the first half of 2016 of the three major operators, China Unicom’s tender volume is more than 6 million units, telecommunications’s tender volume is around 13 million units, and mobile tender volume is nearly 11 million units. As of July 2016, China Telecom’s coal mining volume has reached 21.06 million units, which shows that the actual market demand is very strong. This is also the largest time for the telecommunication group to use coal mining.

According to AVC's omni-channel push total data, in the first half of 2016, the retail volume of the OTT box market was 7.107 million units, a year-on-year increase of 19.8%. The retail volume in the first quarter was 3.909 million units, an increase of 33.2% year-on-year; the retail volume in the second quarter was 3.19 million units, an increase of 6.7% from the same period of the previous year; affected by the second quarter radio and television policy and the implementation of the Ali New Deal, the second quarter was the first Quarterly sales fell 18.2% from the previous quarter.

Source: OVC Cloud (AVC) Intelligent Hardware Big Data Total Channel Total Unit: 10,000 units
L0-99 yuan price segment structure largest increase year-on-year


The low-priced OTT box becomes the first choice for users. Because many low-to-medium-priced OTT boxes are already functionally able to satisfy users' daily use needs, consumers are becoming more and more rational. Therefore, it is not a very sensible thing for consumers to purchase high-priced OTT boxes. .

According to AVC online data, from January to June 2016, the OTT box kingpin price segment structure is 100-199 yuan and 200-299 yuan, and the sales volume of the 100-199 yuan price segment is 44.0%. , a year-on-year increase of 1.2 percentage points; 200-299 yuan price segment sales accounted for 28.5%, a year-on-year decrease of 10.6 percentage points. The price segment structure of the OTT box price structure in the sales share of 0-99 yuan has the largest increase (+7.9%) year-on-year; the price segment structure of the 200-299 yuan price segment has the largest drop (-10.6%).

Exhibit 2: OTT Box Price Segment Structure for January-June 2016

Source: Ovid Cloud Network (AVC) Smart Hardware Big Data Online Monthly Monitoring
l Tmall’s share of sales increased most

Small brands in OTT boxes have fallen sharply. In early April, Alibaba New Deal was implemented. According to a person familiar with Alibaba Cloud Alliance, the original Aliyun Box brand had stopped more than 200 out of the market, and now only 25 core brands have been retained. Later-stage management and control will be more stringent. .

According to AVC online data, in the first half of 2016, the brands of TOP10 are Tmall, Xiaomi, Diyout, Infine, Yidian, Huawei, Skyworth, Haimeidi, Tianmin, and Fiberhome Communications; The retail volume of each brand is:
32.5%, 20.0%, 10.5%, 9.2%, 4.6%, 4.3%, 3.4%, 2.6%, 2.1%, 1.7%; Tmall's box sales share increased the largest year-on-year increase of 11.1 percentage points; followed by the largest increase is the The gracefulness was exceptional, with a year-on-year increase of 5.9 percentage points; the sales volume of the Tianmin Box saw the largest year-on-year decline, falling by 8.6 percentage points. OTT box market brand concentration is higher, TOP5 brand share is 76.8%; TOP10's brand share is 90.9%.

Exhibit 3: Change in OTT Box Brand Share from January to June 2016

Source: Ovid Cloud Network (AVC) Smart Hardware Big Data Online Monthly Monitoring
l The number of brands sold decreased by 38 compared to the same period last year

According to AVC online data, in the first half of 2016, the number of brands sold on OTT Box Online was 123, which was a decrease of 38 brands in the first half of 2015. The number of online brands sold in the first quarter was 118, and the number of online brands sold in the second quarter was 98. In January, OTT Box Online had the largest number of brands sold, and the number of brands sold was 104; in May, OTT Box Online had the lowest number of brands sold, and the number of brands sold was 79.

Source: Ovid Cloud Network (AVC) Smart Hardware Big Data Online Monthly Monitoring Unit:
l The number of vehicles sold decreased by 142 over the same period of last year

According to AVC online data, in the first half of 2016, the number of OTT models sold on the OTT box line was 573, a decrease of 142 models compared to the first half of 2015. In the first quarter, the number of models sold on the line was 508. In the second quarter, the number of models sold on the line was 448. The number of OTT models sold in January was the highest, and the number of models sold was 418. In June, the number of models sold on OTT boxes was the lowest, and the number of models sold was 355.

Source: Ovid Cloud Network (AVC) Smart Hardware Big Data Online Monthly Monitoring Unit:
l The number of newly-listed models decreased by 120 over the same period of last year

According to AVC online data, in the first half of 2016, the number of new models listed on the OTT Box Online was 98, a decrease of 120 models compared to the first half of 2015. In the first quarter, the number of new models on the market was 52, and the number of new online models in the second quarter was 45. In March, the number of new models listed on OTT Box Online was the largest, and the number of new models listed was 39. In February, the number of new models listed on OTT Box Online was the least, and the number of new models listed was six.

Source: Ovid Cloud Network (AVC) Smart Hardware Big Data Online Monthly Monitoring Unit:
Third, the product quotes

l Alibaba Cloud Box's market share increased 5.9 percentage points year-on-year

Currently, the operating system of OTT boxes on the market is dominated by Alibaba Cloud and Android, followed by Baidu Cloud and other operating systems.

According to AVC online data, in the first half of 2016, the overall sales volume of Alibaba Cloud Boxes accounted for 57.0% of the operating system structure of the OTT Boxes, an increase of 5.9 percentage points year-on-year; the sales volume of Android Boxes accounted for 42.4%. , a year-on-year decrease of 5.3 percentage points; other accounts for 0.6%.

According to the monthly market changes, from January to June 2016, the sales volume of Alibaba Cloud Box accounted for 52.3%, 53.9%, 61.5%, 59.6%, 58.6%, and 54.7%, respectively; in March, the growth rate was 7.5 percentage points from the previous month. The largest; in June the chain fell 4.0 percentage points, the largest decline. The sales volume of Android box accounted for 46.9%, 45.4%, 38.0%, 39.9%, 40.7%, and 44.7%, respectively; in June, the chain increased by 4.0 percentage points, the largest increase; in March, it was down by 7.4 percentage points, the largest decline.

Source: Ovid Cloud Network (AVC) Smart Hardware Big Data Online Monthly Monitoring
l Eight-core box share increased 8.0 percentage points year-on-year

According to AVC online data, in the first half of 2016, based on the overall OTT box CUP auditing structure, the sales of quad-core boxes accounted for 85.9%, up 4.7 percentage points year-on-year; the sales volume of eight-core boxes was 10.7%, an increase of 8.0 percentage points year-on-year; other accounts for 3.4%.

In terms of monthly market changes, from January to June 2016, sales of quad-core boxes accounted for 82.0%, 85.2%, 87.4%, 88.8%, 86.8%, and 85.3%, respectively, which was a 3.2% increase in February from the previous month. The largest; the month-on-month decline of 2.0 percentage points in May, the largest decline. The sales volume of the eight-core boxes accounted for 13.0%, 8.9%, 9.9%, 9.1%, 10.7%, and 12.3%, respectively; in May, the growth rate was 1.7 percentage points higher than the previous month, which was the largest increase; it was 4.1% lower than in February, the largest decline.

Source: Ovid Cloud Network (AVC) Smart Hardware Big Data Online Monthly Monitoring
lRAM (running memory) accounts for the largest share of 1G memory

According to AVC online data, in the first half of 2016, OTT box RAM (run memory) structure as a whole, 1GB memory box sales accounted for 61.2%, an increase of 5.2 percentage points; 2GB memory box The proportion was 21.8%, an increase of 1.5 percentage points over the same period last year; the others accounted for 16.9%.

In terms of monthly market changes, from January to June 2016, the sales volume of boxes with 1GB of memory accounted for 66.3%, 68.8%, 62.7%, 57.8%, 58.7%, and 52.2%, respectively; in February, the sales volume increased by 2.5 percentage points from the previous month. The largest range; in June the chain fell 6.6 percentage points, the largest decline. The sales volume of boxes with 2GB of memory accounted for 20.0%, 19.2%, 21.0%, 21.9%, 23.3%, and 26.2%, respectively; in June, the growth rate was 2.8 percentage points higher than that in the previous month; the rate of increase was 0.8 percentage points lower in February, the largest decline rate. .

Source: Ovid Cloud Network (AVC) Smart Hardware Big Data Online Monthly Monitoring
LROM (flash memory) accounted for the largest share of 8G memory

According to AVC online data, in the first half of 2016, the OTT box ROM (flash memory) structure as a whole, the box sales volume of 8GB memory accounted for 61.7%, down 6.1 percentage points year-on-year; The ratio was 27.7%, a year-on-year increase of 4.1 percentage points; the others accounted for 10.6%.

In terms of monthly market changes, from January to June 2016, the sales volume of boxes with 8 GB of memory accounted for 61.7%, 62.6%, 65.4%, 61.2%, 63.1%, and 54.8%, respectively; in March, the sales volume increased by 2.7 percentage points from the previous month. The rate was the largest; it fell by 8.3% in June, the largest decline. The sales volume of boxes with 4 GB of memory accounted for 26.3%, 28.1%, 25.4%, 29.4%, 25.5%, and 32.7%, respectively, which was the highest growth rate in June, which was 7.2% from the previous month; it was 3.9 percentage points lower than the month-to-month period in May. .

Source: Ovid Cloud Network (AVC) Smart Hardware Big Data Online Monthly Monitoring
Fourth, upstream chip articles

lOTT box cooperation chip maker Chen Jingchen has the largest share of sales

According to AVC online data, in the first half of 2016, the sales share TOP5 of OTT Box Cooperative Chip Dealers was Jing Chen, Rockchip, Quanzhi, MTK, and Hass; these chip makers cooperated in OTT boxes. The sales share was 48.7%, 14.7%, 10.2%, 8.0%, and 4.2%, respectively. On a monthly basis, Jingchen’s share rose by a large margin (8.0%) in February, and the largest decline occurred in March (5.7%). Rockchip's shares rose the most in March (6.3%). The share of total records showed a downward trend before April. MTK had the largest decline in April (4.2%). Hass shares showed a growth trend after April.

Source: Ovid Cloud Network (AVC) Smart Hardware Big Data Online Monthly Monitoring
lOTT box chip architecture A53 accounted for the largest share

According to AVC online data, the current OTT box chip architecture on the market is mainly A53, A9, A7, A17 and so on. The sales volume of the OTT box chip A53 is 25.3%, that of the chip A9 is 23.2%, that of the chip A7 is 9.2%, that of the chip A17 is 1.6%, and others The sales volume of the chip box accounted for 40.8%.

Source: Ovid Cloud Network (AVC) Smart Hardware Big Data Online Monthly Monitoring
lOTT box application mainstream chip model sales charts for the crystal morning S905

According to AVC online data, in the first half of 2016, the "top champion", "second only", and "finding flower" of the OTT box mainstream chip models were Jingchen S905, Rockchip RK3128, and Quanzhi H8. OTT box mainstream chip model TOP10 ranking application Crystal morning chip S905 model box sales accounted for 21.1%, Rockchip sales volume of RH3128 model box accounted for 8.5%, Quan Zhi chip H8 model box sales accounted for 7.7 %, sales volume of box of Schenker's S802 model accounted for 5.7%, MTK model MT8685A model box sales accounted for 4.1%, Rockchip's RK3368 model's box sales accounted for 4.0%, MTK chip MT8685 model box Sales accounted for 4.0% of total sales. All-Chip H3 model box sales accounted for 2.3%, Jingchen S905-B model box sales accounted for 2.3%, and Hass Hi3798M model box sales accounted for 1.5%. .

Source: Ovid Cloud Network (AVC) Smart Hardware Big Data Online Monthly Monitoring
Fifth, user behavior articles

L2 month smart TV terminal operating rate is the highest

According to AVC data monitoring data, the average smart TV terminal operating rate from January to May 2016 was 55%, which was the highest in February, and the smart terminal operating rate was 57% in February. In May, the operating rate of smart terminals was 54%, which was the lowest in May; the starting rate of smart TV terminals in January-May was the highest in February, mainly due to the pulling of the Spring Festival holiday and the Spring Festival Gala.

Source: AVC Intelligent Terminal Monitoring Data
l The percentage of active users of smart terminals APP has gradually increased

The active users are defined in March and before: the cumulative duration of the monthly video category is >60 minutes, and the non-video category is >30 minutes; the active user is defined after 3 months: the activation is active.

According to AVC monitoring data, from January to May 2016, the proportion of active users of APP gradually increased. In May, the proportion of active users of APP was 87%, which was the highest in the month; followed by 2 The proportion of monthly active users of APP is 82%. From January to May 2016, the proportion of active users in the category classification overall, the highest percentage of active users in video and audio applications, the average proportion of active users in video and audio applications is 74%, the average proportion of active users in game applications is 16%, and the proportion of active applications in educational applications The average is 15%.

Source: AVC Intelligent Terminal Monitoring Data
l The number of startups per user of intelligent terminal APP gradually increases

The statistics of per capita start-up times are based on valid start-ups, and a single start-up duration of more than 5 minutes is defined as effective start-up.

According to AVC monitoring data, from January to May 2016, the number of APP per capita starts gradually increased, the highest number of APP per capita starts in May, and the number of APP per capita starts is 12 times per person; February APP The average number of starts per person is the lowest, and the number of APP per person starts is 7 times per person. From January to May 2016, the average number of launches per person in China was the highest. The average number of launches per person for video and audio applications was the highest. The average number of starts for video and audio applications was 9 per person, and the average number of starts for games per user was 4 per person. The average number of per capita starts was 3 times per person.

Source: Ovid Cloud Network (AVC) Smart Terminal Data Units: Times/People
The longest single-use APP in January

The statistics of the average duration of a single use are based on valid start-ups, and a start-up time of more than 5 minutes per start is defined as effective start-up.

According to AVC monitoring data, from January to May 2016, the single-use duration of APP in March was 73 minutes/time, and the longest duration of APP use this month was. For the period from January to May 2016, the single-use duration of the single-use application was the longest for a single use of video and audio applications. The average duration of single-use video and audio applications was 56 minutes/time, and the average duration of single-use game applications was 24 minutes. / Times, the average duration of single use for educational applications is 23 minutes/time.

Source: AVC Intelligent Terminal Monitoring Data Unit: Minutes/time
Sixth, market forecast articles

According to AVC online monitoring data and OTT box company interviews, it is estimated that the sales volume of OTT boxes in 2016 was 12.873 million units.

As the impact of the regulatory policy promulgated in the first period of 2014 was significant, it continued to affect the first half of 2015; in 2015, it entered the regulatory period, and the company was already accustomed to policy supervision; in addition, although the policy was exposed in the first half of 2016, it did not materialize. The actions appeared; therefore, the first and second quarters of 2016 increased year-on-year. In the third quarter of 2016, the sales volume declined because of the establishment of mandatory standards for Internet TV receiving equipment. The probability of the standards being issued to the outside world in the second half of the year is relatively large. Secondly, the broadcasting and TV industry has begun to investigate the disguised irregularities between licensees and operators. It is proposed that the OTT box market chaos should be strictly controlled, and the tightening of late-stage supervision policies is a high-probability event. Considering the fourth quarter, National Day, Double Eleven, Double Twelve and other sales nodes are intensive, and the sales volume of boxes is expected to rise.

Source: OVC Cloud (AVC) Intelligent Hardware Big Data Total Channel Total Unit: 10,000 units
In summary, the sales volume of OTT Box in the first half of 2016 is much better than the previous forecast. The impact of regulatory policies on the OTT market is mainly reflected in the number of brands that are sold in the box, the number of models sold, and the number of new models to be listed. In January and February, the news that “OTT boxes were blocked by radio and television” has skyrocketed. There was no significant change in the number of brands sold and the number of models sold, but it was clear that the manufacturers were cautious in the number of new models listed. The number of models listed on the external market was extremely small; in March, the regulatory authorities had not seen further progress. With the introduction of regulatory policies, relevant reports on strong supervision tend to be weakened, and manufacturers of OTT boxes that have been diving for a long time have invariably launched new products. During the April-May period, due to the initiation of the establishment of national standards for Internet TV reception equipment, the launch of private network and audiovisual program service management regulations (Order No. 6), and the implementation of Alibaba's New Deal in April, some brands were wilted and In the second quarter, both the number of brands sold and the number of models sold were gradually decreasing.

Although hardware is subject to significant fluctuations due to radio and television policies, upstream chips are moving toward high-end technologies, such as the continued rise in market share of chip architecture A53. In terms of user behavior, the operating rate of smart terminals has been continuously improved, and the activity of APP users has also been continuously improved.

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