2015 will enter a new round of OTT outbreak

Media Reporter: SARFT has strictly controlled the Internet TV industry in accordance with Document No. 181 in recent months. It has just issued Document No. 204, which controls the source of the content. Is it an opportunity or a challenge for Amlogic?

Zhong Zhong: Actually, Document 181 has been issued for a long time. This time, the General Administration of Administration of China has strengthened the enforcement of Document 181. It mainly controls and controls the live broadcast and playback. Judging from Document No. 204, it is a rigorous examination of the level of copyright, which has raised the threshold for entry into the country of overseas films such as American dramas and Korean dramas. However, in general, the form of smart TVs and smart box products are always present. Consumers have been developing from VCDs to DVDs to smart set-top boxes. The playback of content will always be achieved through a product. As long as consumers' demand for wonderful content does not change, the demand for smart box products will be just a necessity. In the long run, this industry will develop in a more orderly and healthy manner. Amlogic has rich experience and technology accumulation in the field of smart TVs and smart box chips. Although short-term consumers will be affected by some psychological influences, for the time being, temporarily Wait and see. However, we believe that the prospects of the industry are huge and this will be our development opportunity. Because I believe, I have it.

Media Reporter: Where are the biggest opportunities?


Zhong Zhong: In the first half of this year, we all supported the well-known brand manufacturers in the industry. In the first half of the year, our company shipped more than 10 million units. According to third-party data, we accounted for about 70% of the domestic smart box market. The explosive growth of smart boxes from last year to the first half of this year shows that the rigid demand for smart boxes is very strong. The Jing Chen company has already begun layout three years ago. I think that opportunities always come for those who are prepared. After this rectification, the access content of the box was strictly restricted, so some manufacturers and licensees had some new changes and new cooperation in the cooperation. In this process, the product has had some bad influence on the use of consumers. For example, content has become less rich than before, and many sources have begun to charge, and some content or applications have been removed. This will confuse the user. Whether the OTT service is guaranteed or not will hurt the user's buying enthusiasm. Of course, wait until the consumer knows that it is not the state that restricts smart products, but regulates the content source. After understanding, the market demand is still great, plus more and more kinds of games, and the experience is getting better and better. There are also K songs. The continued enrichment of home entertainment application services will inspire users' purchase needs.

Media Reporter: What is the relationship between Amlogic and home entertainment in the transition from home entertainment devices to VCDs and DVDs from the 90s to the current smart TV terminals?

Zhong Zhong: In fact, our company has done a lot of interesting products, the industry may not be clear, in fact, when the Malata DVD 20,000 song song king products is what we do, through our technology, the sound effects have been handled very well, fully satisfied The needs of the people at home in the K song. The earliest Skyworth CoolTV is also a product of cooperation between our two parties. It has done very well and the products have been hot in the year. In fact, we have helped a lot of terminal manufacturers make a lot of good products, but we have been silently doing technical support behind the giants. Yesterday, so today. This time, I participated in the Asia-Pacific OTT Summit and exchanged views on our technology to let everyone know who Crystal Chen is. It is such a company that has made contributions to the development of family entertainment. Creating a new mode of home entertainment is the direction of Jing Chen's efforts. We will continue to work hard to develop more and better products.

Media Reporter: What are the ideas for future family entertainment?

Zhong Zhong: I think there are many things that family entertainment can actually do. For example, with the increasing clarity of video processing, 2k and 4k have begun to enter the homes of ordinary people, but the audio of televisions is often unsatisfactory. LED TV screens are often designed to be too thin, so that the audio part is difficult to design perfect. So we also invested in wireless audio chips. And in cooperation with several famous consumer brands. I hope to enhance the experience of home entertainment. Not only can I watch TV, but I can also connect audio and music wirelessly. I can put audio in each room so that my family can be filled with beautiful background music. There are many things that can be done. Many are now linked via Bluetooth, but Bluetooth has a narrow bandwidth and a short connection distance, so quality will also be affected. The future is connected through wifi, link distance and sound quality can be greatly improved.

Media Reporter: We know that Amlogic’s current major customers are large brand customers such as Xiaomi, Ali and Baidu. How do you see the influence of these big brand customers on OTT?


Zhong Zhong: At present, those big customers have more time to wait and see. The understanding of the policy requires time and self-check. In fact, we also deeply feel that they all want to exert force, and users also have needs, but they are afraid that vigorous promotion will have policy risks. In fact, the country's documents are written very clearly. It is not a product form to be opposed to. It only tells you where you want to regulate. The content can be managed and controlled, and cooperate with the licensee. In this case, you can do it. You can do it and you can promote it. I think no one will point it anymore. Ding Bo (Note: Dr. Ding Zhong, Co-chair of the Multi-Screen Access Internet Standards Group of the Ministry of Industry and Information Technology) just mentioned that our control does not mean to reduce the entertainment of the products. The main purpose is to let the industry develop healthily, not to talk to consumers. Demand creates conflicts. I think everyone can still understand this. Let us look at the reaction of the market.

Media Reporter: The 2013 data from Glan Research shows that Amlogic holds more than 70% of the market share. As an industry leader, what are your ideas for the advancement of OTT in the future?

Zhong Zhong: First, we did it earlier. We came from VCD and DVD. Not only a chip but also image display technology needs to be accumulated. Not all tablet chips can be put up well, and the processing of the TV itself and the output of the image itself requires some technical algorithms to be optimized. So we think that in the field of OTT, all our technologies are complete, and each format or patent is legally authorized, so big customers do not have to worry about future technology payment risks or legal risks in cooperation with us. Second, we will also work more with content providers to see what kind of processors they need and whether they are in line with their future development. This is more important. Big companies have their own strong strategies, and according to his strategy, we do a good job of chips, and the cost is higher.

Media Reporter: Now that there are more and more popular cloud+end models on the market, do you think that cloud and endpoints are more important?

Zhong Zhong: I think going to the cloud is definitely a trend. I have just mentioned that the video is already on the cloud, there is no need to store it locally, and you don't need to download it. You just need to do some caching. So video applications have already been implemented on the cloud. But the terminal can not be too light, the first user's experience must be continuously improved, the reaction speed is improved, and the peripheral equipment is perfect. In fact, there are still many articles that human-machine interaction can do. This requires the local chip to operate. If all rely on the cloud, large-scale games will not be slow, and the user experience will be poor. Therefore, many aspects of the cloud and the end should be complementary, can not blindly pursue the cloud, resulting in low-cost end, which is not conducive to the development of the industry. The cloud and the end should be complementary to the user experience.

Media Reporter: In this model, Amlogic saw what kind of problems?

Zhong Zhong: First of all, for users, there is a clear demand for 2K and 4K content. For operators, there is a problem of how to charge fees and how to protect content copyright. In cloud+end mode, secure deployment becomes more important. Secondly, the promotion of cloud games has made new extensions to the application of smart boxes, but the processing of delays at the same time has become a new challenge. In addition, the terminal's corresponding speed and low power consumption will have new challenges.

Media Reporter: Under the trend of Cloud+, what are the opportunities for Amlogic at the technical level?

Zhong Zhong: Amlogic saw the trend of cloud+end. We have fully prepared for development in the following aspects: 1. Provide 64-bit addressing, which can support larger capacity of memory. 2. Chip-level security solutions to protect the future business model of operators 3. To optimize the processing of delays, improve the real-time operation of the cloud + end 4. Low-power chip technology applications, from 28nm to 16nm chip development Production 5. Experience with cloud integration. At present, in the case of cloud + end support, we are constantly in practice.

Media Reporter: As the bottom layer of the industry chain, chip manufacturers are concerning how to view the current set-top box industry. Compared with the mobile phone industry, how should various vendors in the industry chain optimize?


Zhong Zhong: The mobile phone is an essential terminal for everyone, and the replacement rate is also very high. In terms of cost, the box does not have any obstacles to change, but what you can do to make users feel that he should need to change, so that the amount will increase. Do not buy a box for two or three years or have no impulse to replace, so that the total amount of this industry will have limitations. So we are also thinking about how to make the box function diversification and form diversity. For example: Let today's smart boxes become a credit card-sized product, cooperate with smart TVs, and use cards to allow consumers to actively upgrade their smart TV functions by changing cards after a year or two.

There is a very important factor in the demand for mobile phones. The design of the appearance is very important. Therefore, the constant appearance update can stimulate the desire of consumers to replace. The mobile phone requires very high power consumption. The new technology and the new technology allow the power consumption. Lower down, longer battery life, so the phone is not only performance, and content, from the appearance of consumers have his pursuit, which is not available in the box. However, the design of the box, the improvement of the production process, the multiple integration of applications, the improvement of the quality of video playback, and the sound technology are all necessary conditions to lead consumer demand.

Media Reporter: As the bottom layer of the industry, the chip is a barometer for the development of the industry. How is the shipment status of the entire chip manufacturer?

Zhong Zhong: In the first half of the year, the number of changes in the first half to the second half of the year was drastically reduced. Many chip manufacturers’ sales in the second half of the year will be 40% of the first half of the year, which is lower than expected. The situation of shipments of major customers is very representative. There are also many good products. Due to uncertain policies, many companies postponed new product listing plans last quarter, which is a pity. But for now, the new round of warm-up will begin again. As I said before, as long as it meets the requirements of the Directorate for Program Access, the industry will still be dynamic.

Media Reporter: Are you optimistic about the market next year?

Zhong Zhong: Personally , I'm still quite optimistic. Everyone has finished rectification. The cooperation between the licensees and the content parties has basically reached a conclusion. Each has found its own partner, and the user experience of the terminal is also getting better and better. So next year should be a new round of outbreaks.

Media Reporter: What is the difference between the set-top box market at home and abroad?

Zhong Zhong: This is very interesting. Actually, we have cooperated with several big companies in North America. For example, AT&T has done so. They have a long cycle to do, are more cautious in planning, and have higher requirements for product testing, but once they do it, Their services will continue to keep pace, they are not affected by any policy, there is no policy issues, mainly the company's own control of the market, recognized by consumers, and the benefits of value-added services. I also saw that these manufacturers were relatively closed in the past. With the popularity of smart phones and the opening of the Andriod system, they have gradually moved to Andriod, which also gives us good opportunities for overseas markets. We mainly focus on overseas markets. The Andriod system, the company has been working on Andriod.

Media Reporter: Local chip companies, such as Hass, have developed rapidly. So how does Amlogic, as a foreign chip company, consider localization services?

Zhong Zhong: Actually, 90% of our employees are in China, all on the mainland, and are completely out-and-out of mainland companies, including myself and the Mainland. A lot of our core teams are in Shanghai, and Shenzhen, Beijing, and some of the more core teams in the United States are sent from home. Crystal started its domestic business long ago, but the company was founded in the United States. Therefore, in recent years, we have invested many resources in China, not only in R&D, talent, but also in long-term Chinese localization strategies. Our response to customers is very good, the response speed is fast, the professional team of engineers is dedicated and we do our job. Of course, we still need to do better.