Xiaomi Planning To Invest $1B In Online Video Content For Smart TVs
Xiaomi officially announced that it has planned to invest $1 billion in online video content to support its smart television ecosystem.
This task is to take place under the supervision of two executives: Chen Tong (former editor-in-chief of news portal Sina.com) and Wang Chuan (director for Xiaomi’s smart TV products, including Mi TV and Mi Box).
Both of the decision makers have had extensive online content building experience. Wang is the founder of Beijing Doukan Technology, which was acquired by Xiaomi before he joined the latter company. Doukan specializes in developing reading and video apps.
Xiaomi plans to create a hardware ecosystem based on MIUI, its Android skin. MIUI syncs between its devices like smartphones, tablets, smart TVs and Wi-Fi routers.
China is now the world’s largest smart TV and over-the-top (OTT) content consumer, according to Digital TV Research, with 20 million to 30 million smart TV sets being sold each year. Xiaomi’s smart TVs were first made available in September 2013, and with its popularity, it is a must part for the ecosystem to flourish.
However, since the company focuses on hardware, it is equally essential for Xiaomi to create software and online content to generate revenue simultaneously.
With such massive market of the rapidly growing smart TVs available, Xiaomi has to compete against domestic competitors like Baidu and Alibaba, along with Samsung and Apple as international rivals.
TV+, Baidu’s smart TV, has more advantages over Xiaomi’s smart TV because it streams content from iQiyi and PPS. These two combined make for China’s biggest online video provider. Apart from online video streaming, TV+ also allows users free access to movies and TV series.
Xiaomi beat Samsung in China and became top smartphone seller in the country. Then in the market analysis reports, it was found that Xiaomi became third most selling brand of smartphones worldwide — thanks to its sales in China and emerging markets — with Samsung and Apple securing first and second position respectively.
This success story has not ended yet as Xiaomi is looking at further ways to become a top brand like Apple, Microsoft or Google. Let’s see how far the company goes.