Rumor: Xiaomi Internet TV STB to Return with Less Content
China Business News, 12/03/12
According to a source close to the company, Beijing-based Android handset developer Xiaomi is making technical revisions to its recently released "Xiaomi Box" set-top box (STB) in order to comply with State Administration of Radio, Film, and Television (SARFT) regulations. Xiaomi plans to release a new version of the STB, removing unlicensed video content that was available on the original version.
According to the source, due to Chinese government restrictions, a number of STB manufactures plan to begin offering their products on the international market. Most STBs retail for between USD 69 and 99 on the international market and have a gross margin of between 58% and 65%. The typical cost to produce an STB is between RMB 180 and 220 (USD 29 to 35). Due to competition with knock-off products in mainland China, STBs in mainland China retail for around RMB 300 for a gross margin of less than 30%.
Editor's Note: For more background on this topic, please see "Xiaomi Internet TV STB Suspends Video Content Service" MD 11/23/12 issue.
Keywords: content Internet television Internet TV SARFT set-top box Xiaomi Xiaomi Box regulation
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