Samsung tries to capture revenue in any way for its TV division

Once again, Samsung is trying to capture any revenue for its TV division due to a strong and unexpected decrease in unit sales during the first quarter of this year 2016.

I'd like to start with a quote from Seth Godin that I think fits this situation, and why not say it, all mega-companies like Samsung:

One thing you can be sure of about your marketing plan, your products, or even your own life, is that things will never go the way you planned.
Seth Godin will say too

We live in a time, where technological innovation has yielded its fundamental and priority position to that of the entertainment industry, an industry that is currently oversized and with a saturated market.

These companies that make up the entertainment industry, demand from the market a rhythm of purchases and consumption that is impossible to maintain for as long as they intend. And precisely that is what is happening to one of the largest companies in the world dedicated to the entertainment sector in its TV division,

Samsung does not find an answer in its demands on the market.

This as best you can see is with figures:

• In 2014, and due to the great event of the World Cup, 234 million units of LCD televisions were sold.
• In 2015, 6 million less were sold, that is 228 million units, 2,56% less
• and during the first quarter of the 2016 the sales were reduced by 7% compared to the same period in 2015.

The figures cited are global , that is, they are worldwide sales and include the sale of televisions regardless of whether they are equipped with Smart TV technology or not.

It is possible that the decrease in sales compared to the same previous period is not spectacular, but if you look at it in detail by region and brand, things do get interesting.

In order not to make this article long and heavy, let's focus only on Samsung.

During the first quarter of 2016, Samsung 's television division saw a 22% decrease in unit sales compared to the same period of the previous year, and an 8% decrease year-over-year . That represents a significant financial loss when dealing with tens of millions of units sold.

These figures are even more alarming in Europe, where 60% of Western Europeans currently opt for a television without Smart TV functionality when buying one . Does this mean we're primitive and maladjusted?

However, these figures from the Chinese market are spectacular; four out of every five Smart TVs sold worldwide are sold in China.

It must be taken into account that the final profit margin that these companies obtain for the television sector is between 3% and 6%. This means that with such a tight profit range, it is very difficult to maintain such an immense structure and attend to the modest remuneration that its boards of directors have.

What does this mean? That they've made a mistake with the numbers? Not at all. The strategy lies in the fact that the difference between reaching the optimal profit, which can be around double, between 6% and 10%, is based on the confidence of maintaining a minimum sales volume, predetermined by the Marketing department years in advance.

To keep those sales flows so high, there is no choice but to constantly reinvent itself, continually adding "new improvements and technologies", 3D, 4K, curved screen, etc. This is a simple strategy for buyers to be tempted and have "strong" arguments to justify the purchase of a device every so often.

Therefore, and in some way, the Marketing departments influence and force the decision of users regarding the optimal time period to pass before acquiring a new television.

What is already in doubt is whether they took into account other variables that have come into play and that have had a very negative influence on the Smart TV business, and it is that, nowadays, it is very easy to convert any television no matter how old it is. either on a Smart TV, or by connecting a laptop, a tablet or a TV Box to the TV.

Do not think that this is a practice only for Samsung, otherwise, on the contrary, it is the dream of all companies in all sectors. In fact, there is a technique in this regard that studies all this in depth, it is called Planned Obsolescence and Production. And let's not think that this is something new, this technique began its journey in the early 30s.

When the surface is scratched a bit and all this is found, which is the business policy, it is not so strange or scandalous that Samsung has the urgent need to capture income whatever, opting now to include advertising on its televisions in an intrusive way .

This intrusive advertising will be issued in two ways; one directly on the television via a menu bar and the other at startup when the television starts up.

As always, the USA is leading the way and this practice has been operating there for a year, and it seems that they have done quite well, but here in Europe, we are so "primitive" and we'll see how it turns out.

It should not be forgotten that this is not the first time Samsung has done quite annoying and unacceptable things; let's remember the uproar that occurred when it was discovered that Samsung Smart TVs came from the factory with open microphones that recorded and processed all the conversations that took place around them.

This did not mean an espionage for an alleged terrorist or something like that, it was simply to discover keywords, in order to find out what were the needs and purchase intentions they had at that time, in this way, a personalized and specific advertising could be served for that moment. That if that is to hit the target and the rest nonsense.

But this is not the worst face of Smart TV, and it is a very attractive target for hackers.

In the month of May, a piece of news appeared that looks like a movie but is as real as life itself.

It seems that for a hacker , taking control of a Smart TV isn't too difficult, and they take advantage of this by turning on the video camera and microphone to record everything that happens . And this is exactly what happened to an English couple who were comfortably relaxing on their sofa, showing each other a lot of affection.

Meanwhile, these recordings began circulating on porn sites until some acquaintances of the couple viewed the video and recognized the living room and furniture, alerting the couple to what was happening.

So nothing, all those who have a Smart TV at home, and if they do not want to take a risk similar to what happened to this couple, be careful with what you do and say in front of the TV, it is the eye that sees everything .