LeTV to Release Smart TV
Tencent Tech, 9/19/12
Jia Yueting, Chairman and CEO of Chinese online video site LeTV (Leshi) (300104.SZ), announced today that LeTV will enter the smart television market and plans to release a smart TV, the "LeTV Super TV".
LeTV has begun to move cash and other capital resources into the company's independently operated set-top box (STB) manufacturing subsidiary, Leshi Zhixin Electronics, to develop manufacturing capabilities for the new TV. LeTV's Board of Directors has agreed to invest more than RMB 100 mln in Leshi Zhixin over the next two months.
According to Leshi Zhixin Vice President Yang Fang, who will oversee TV production at the company, traditional television manufacturers can only take in revenue through hardware sales, while the "LeTV Super TV" will take in revenue from "hardware sales, content, apps, and terminal advertising." Yang emphasized that Leshi's smart TV would do away with traditional methods of "advertising, retail space, and large-scale sales promotions" to sell TVs, and would instead adopt an internet and video marketing strategy.
Editor's Note: For more background on this topic, please see "LeTV Spins Off Internet TV Subsidiary" MD 8/22/12 issue.
Keywords: Leshi Zhixin TV set strategy television LeTV Jia Yueting 300104.SZ smart TV Leshi Yang Fang
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