Recently, a number of cable TV listed companies have released financial reports and announced their performance data for 2023, among which Guiguang Network will achieve operating income of 1.852 billion yuan in 2023, net profit attributable to shareholders of listed companies of -1.385 billion yuan, and total assets of 17.313 billion yuan, and Gehua Cable will achieve operating income of 2.434 billion yuan in 2023, a year-on-year decrease of 0.32%. The net profit attributable to the owners of the parent company was -172 million yuan, a year-on-year decrease of 151.95%, and the company achieved an operating income of 1.404 billion yuan in 2023, a year-on-year decrease of 16.46%, and the net profit attributable to shareholders of the listed company was -698 million yuan.
In view of the loss of cable TV business, the companies have basically stopped explaining the specific reasons, and the main reasons for the unfavorable development of cable TV in previous years are as follows:
1. Reasons for market competition. Competitors and various TV products in the TV market, especially IPTV and Internet TV, are the main factors affecting the development of the traditional cable TV market.
2. Lack of innovation ability. Cable TV cannot keep pace with the times in terms of self-revolution and self-innovation, and it is not sufficient in product iteration and upgrading, and it lags far behind its competitors.
3. Management reasons. In the face of fierce market competition, cable TV does not have enough market experience, and the training and reserve of marketing team and marketing management personnel cannot meet the needs of market competition.
4. The network is old. The transmission network of traditional cable television, especially the cable television access network in the old community, is mostly out of service, and the failure rate is high, which seriously affects the user's viewing experience, which is an important reason for the stock of users to go off the grid.
Although the radio and television network companies around the country are still relatively objective in their understanding of themselves, and their own problems and shortcomings are relatively clear, they have been unable to solve them for a long time due to various reasons, especially under the pressure of income and profits issued by superiors, not only have no time to deal with the exposed problems, but also need to improve profits in the case of heavy problems, which also directly or indirectly leads to great pressure on grassroots employees under various assessments.
In fact, those loss-making cable TV companies did not take cable TV as their core product in their future work plans, but instead focused on those government and enterprise projects with quick results. Therefore, they all have the following commonalities in government and enterprise work:
1. Hoping to quickly improve quality and efficiency through government and enterprise projects, fundamentally speaking, government and enterprise projects have an immediate effect on the increase in income, so most radio and television network companies are eager for government and enterprise projects.
2. Realize cooperation with Internet companies, especially leading Internet companies, through government and enterprise projects, hoping to achieve transformation and track switching through this cooperation.
3. Realize the docking of local key projects through government and enterprise projects. For example, Guangxi Radio and Television has promoted the construction of an emergency broadcasting system, opened up the "last mile" of rural information dissemination, and built a Guangxi emergency broadcasting cloud platform; actively expanded 5G private network services, and included projects such as Qinzhou smart port, offshore wind power, smart port, police service, and law enforcement recorder into the key projects of the State Grid; and the construction of Guangxi's "smart radio and television" all-media information platform project, etc.
In short, it is not an isolated case that radio and television network companies, which are dominated by listed companies, are getting lower and lower profits or even have large losses based on cable television, and government and enterprise projects that bring rapid income to enterprises have been pinned on by everyone, so whether these government and enterprise projects that can ostensibly drive cable TV income are really the future and hope?
Do you think there are other reasons for the loss of cable television?