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Net TVs are popular sellers

(China Daily)
Updated: 2009-07-20 13:19

Updating

While a traditional television set is a one-time purchase, TV producers still have to invest in updating their platforms.

Internet TV maker Changhong, according to a recent study by SeriChina, has invested 150 million yuan for its current store of more than 10,000 movies. That expense will mount as more movies are released via the Internet.

"Producers must realize that relying on the cooperation of video websites is far from a long-term resolution, due to the stricter administration of copyrights," Xu said.

"Few websites can provide free videos, especially when the revenues from advertisements can barely cover the costs of purchasing copyrights," he said.

In addition, more consumers are avoiding the higher price tags of Internet TVs by connecting the Internet to their existing television sets.

For example, many LED TV sets have digital interfaces and USB ports on them, making it easier to play downloaded videos on TV sets.

Another issue is how to maintain customer loyalty to emerging products.

Ensuring security is important, since combining Internet access with traditional electronics products tends to raise the level of the threat of a potential Internet virus attack.

"How to prevent and resolve security problems will be a great challenge to the after-service market for Internet TVs," Xu wrote in his recent report, Marketing Strategies of Internet TVs in China.

The report also raised concerns about how to balance traditional TV programs and Internet content.

"Instead of making Internet and TV services two separate systems, customers prefer to directly insert Internet windows into TV programs," Xu's report stated.

Although the Internet TV industry has enormous potential, domestic producers still have a long way to go, industry experts said. Devising a strong marketing strategy and developing integrated functions are crucial to growing this new sector, they said.

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