Xiaomi is looking to break into the smart TV market in China with a whopping $1 billion investment into online video content.
The Chinese smart TV market is already a very competitive scene, with local competition from the likes of Baidu and Alibaba and some international brands with Samsung and Apple making their mark. The problem is compounded with local competitors offering more services; Baidu through their TV+ platform streams content from the two largest online video providers in iQiyi and PPS while Alibaba allows users to shop online and pay their bills through their television.
To really make a mark in the smart TV industry, Xiaomi has their top two executives with knowledge in the field; Chen Ton, the former editor-in-chief of Sina.com and Wang Chuan, director of smart TV products. Xiaomi is also approaching the market in a similar way it approached the smartphone market, by selling the hardware at close to cost prices and generating revenue through the sale of software and online content such as videos.
It is no surprise that Xiaomi is working hard to enter the smart TV market in China. According to Digital TV research, China has the world’s largest smart TV and over-the-top content market. Apart from that, Xiaomi is also gearing up to build an ecosystem around its MIUI, its Android based platform to sync up hardware from smartphones, tablets and TV’s. The groundwork for this has already been laid out with Xiaomi’s release of Mi TV and Mi Box last year.
A large billion dollar investment may not guarantee success in the smart TV market for Xiaomi, but it is definitely a good start for one of China’s biggest up and comers.