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Extraordinary Genius
Chapter 1284 – TV Set-top box
“Manager Feng, you are saying that we should start producing TV boxes now?!” Zhong Qingxian frowned as he looks at Feng Yu.
“That’s right. What’s wrong?” Feng Yu is puzzled. China has started laying TV cables to the villages, etc., in 1998. Although some rural regions still use TV antennas to receive TV signals, most of China can receive cable TV now.
In the cities, satellite TVs and TV set-top box had appeared. Those TV boxes are produced by a subsidiary of a state-owned company and are not selling well. Most people still felt the subscriptions are too expensive.
Many people felt watching cable TV is already a luxury, and there’s no need to have so many channels. Of course, some cable TV can receive more than a dozen channels, but it is much cheaper. A TV box might receive more channels, but the charges are too high!
Another advantage of watching cable TV is using a splitter box to connect to multiple TVs while paying for one subscription. But the TV box cannot do this. Every TV requires a TV box. If you have three TVs, you need three TV boxes and pay three subscriptions!
Many people are not willing to pay for one subscription, let alone three subscriptions.
China Guang Dian Company had picked 49 cities to introduce their TV boxes as pilot testing. From early last year until now, there are more than 100,000 TV box users.
But most of the TV box users are civil servants and top executives of state-owned and private companies, as it’s their companies that are paying for them, and the users will not feel the pinch.
These people’s TV boxes are not bought. They were given free by the cable TV companies and will recover the cost through their subscriptions. Of course, these users participate in the trials, and some will not continue with the service.
But early next year, TV box will become popular suddenly. The higher-ups have plans to introduce digital TV, and the western countries had already started in 1998.
From Feng Yu’s previous life, TV boxes will enter more than a million families’ homes. The popularity spreads from the coastal regions in the southeast and the pilot testing cities. He remembered that his family’s queue was after one million, and it means there are at least 1 million TV box users in 2004.
As the world’s major producer of TV boxes, China exported a large volume. That means the TV box will achieve sales of at least a few million units next year. There’s still enough to enter this market, and it will be too late if they miss this opportunity.
“Manager Feng, are you planning to export this TV box?”
Zhong Qingxian could not see the potential of this TV box in China. Many people might not even know about this device.
In the past, Wind and Rain Home Appliances had always introduced their products in China. They only exported them after they have controlled the Chinese market.
This product is only popular overseas, and it is still starting in China. This means they will have to target the overseas market first this time.
No matter what electronic products Wind and Rain introduced, the Chinese market will make up a large percentage. But they will be doing the opposite this time, and it’s easy to fail.
If this product fails overseas, it will affect the brand greatly. Wind and Rain have established itself internationally because all of their products are successful.
If Wind and Rain have previous failures, it might still be fine. But if this TV box becomes Wind and Rain’s first failed product, it can significantly impact its growth.
“We will enter both the domestic and overseas markets. I know many people in China still have not heard about this device. But within the next three years, TV boxes will become very popular. Maybe there will be more than 10 million users by 2006. Furthermore, TV box is on the rise overseas now. We must not miss this opportunity.”
“Then are we going to produce cable TV box or ground TV box? Don’t tell me that you are thinking of producing a satellite TV box?!” Zhong Qingxian suddenly remembered Feng Yu mentioned he is going to buy a satellite.
“What’s wrong with that? Ground TV box is obsolete. Only Cable TV boxes and Satellite boxes are selling well. The satellite TV box is for exportation and cable TV box is for our domestic market. Of course, we must also develop hybrid, multi-functions, and high definition, TV boxes.”
Besides the basic function of watching TV and digital TV, there should be TV boxes with other functions like high-definition digital broadcast, online connection, software upgrading, video calls, video playbacks, music playbacks, shopping, games, etc.
In the future, the TV boxes have more complicated functions. Bill Gates has wanted Microsoft to enter the TV box market with this type of TV box with multiple functions, especially modem.
Many people should have used a TV box that allows the user to go online.
“The technology for this device should now be easy, and we will be starting from zero. Do we have enough time?” Zhong Qingxian is slightly worried.
“We will be in time. The circuit board for this device should not be difficult. With our company’s expertise, they can easily develop this technology from reverse engineering other companies’ devices. After that, we can improvise on that with our ideas and introduce a multi-functional TV box to capture the high-end market. It’s only the chip and software that might be challenging. Still, I believe Lenovo Kingsoft and the other companies can help us with that.”
“What about the marketing?”
“We can let Chang Hong do the marketing in China. They are selling TVs, and it should not be a problem to sell this TV box. Also, don’t forget that the higher-ups support Chang Hong. Also, this is a branded product and should be selling better than other companies.”
“Our Wind and Rain Brand distributors can help us market this product for the overseas market. If we face difficulties, I will get Bill Gates to help. We can enter into a joint venture with them as they are experienced in developing the software for TV boxes.”
It would be better if Feng Yu does not need to work with Bill Gates to make Wind and Rain Brand look bad.
“I will inform the rest and see which company is willing to accept this project. If no subsidiaries are willing to take on this project, then I can only force them to do it.”
“Oh, the production must be split. I mean, the core microchip, software, and hardware must be separated. We can focus on microchips and software development and outsource the hardware production to other smaller factories. This will lower our cost and can lower the users’ charges.”
Zhong Qingxian’s eyes brighten up. With their brand and cost advantage, it will be difficult for this product to fail!
Set-top box