Due to rigid government regulations for TV shows, people nowadays in China are more willing to spend their leisure time by watching on-line videos rancher than string in front of a TV, watching some tedious TV programs. This results in the trend that China’s on-line market is becoming the largest.Mountains of on-line video firms have emerged. Among them all, LeTV is the most innovative one.

LeTV applies the most innovative and a very unique operating pattern. It innovated to try to open the door of smart TV era. In China, most of the on-line video companies slash costs by using pirated contents. Unlike them, LeTV acted totally different: it bought license of the contents. LeTV made the decision based on its accurate prediction on the macro environment: there is a trend that in China, content license will be increasingly important. These days, other companies need to spend a lot of money on buying license while LeTV is able to increase its revenue by selling the license.

Last year, the firm launched the first smart TV which is a part of its unique operating pattern: a combination of “software” and “hardware”. The smart TV is one of their “hardware”.TVs have larger screens which can offer a better viewing experience than iPads and smart phones. Based on this idea, LeTV decided to start the smart TV era as well as paid on-line videos in China. On-line video companies make little revenue by making free videos and ads. In this way, LeTV can not only attract consumers on-line but also off-line on TVs.

Referencehttp:The Chinese Stream,The Economist( Nov. 9th,2013)//www.economist.com/news/business/21589434-chinas-online-video-market-largest-and-most-innovative-world-it-also-most