(Yicai Global) March 6 -- Baofeng Group Co. will position itself as an internet television and home internet services brand, with next year and 2019 as the transitional time, the firm's chief executive Feng Xin wrote in an internal email yesterday, Sina Technology reported.
"Long video used to the main battlefield for Baofeng, but it's a business where copyright acquisition costs more than 10 billion yuan per year [with Baidu, Alibaba and Tencent taking the top three spots], and [Baofeng] has lost billions of yuan each year," Feng noted, stressing that the company needs to deploy on another front.
Online platforms will have two major opportunities, 'home internet' and 'car internet,' before 2025, he noted, and Baofeng will focus on the former, because the computer user interface has evolved from keyboard to mouse, touch screen and then to natural language interaction, unlocking potential market demand along with the progression. TV serves as an important home internet interface for user interaction and computing services, he added. Baofeng TV is a leading brand with an advanced product and sales network that has gained insights into online TV service operations and been instrumental in promoting the public's awareness of these services.
The firm must let video users know that it has developed the best internet TV set available today, he advised. Advertising and sales teams should focus their efforts on attracting users to big-screen TV commercials and incorporate paying internet users and e-commerce and gaming businesses into big-screen TV and home internet services. The firm must also introduce its services in such emerging products and technologies as internet TV applications, voice-enabled artificial intelligence (AI) assistants and AI-based referrals. Baofeng will send a consistent message to the media that it has moved to the home internet market as its main campaign, with its core product being Baofeng TV.
the company logged operating income of CNY2 billion last year, up 16 percent from the year before, per the latest earnings report it recently released. Its net profit attributable to shareholders grew by 0.45 percent on the year to CNY53 million, while gross profits roughly tied the record for 2016. TV business revenues above all rose by about 45 percent annually.
The group's strategy this year is 'All for TV,' meaning that it will create more value for shareholders by focusing on Baofeng TV as the core business, Feng said.