Baofeng, China's online video service, has recently collaborated with Alpha Animation and Culture as well as 3Nod and Ririshun, a consumer electronics manufacturer in their quest to create a new smart TV that will be branded as Baofeng TV.

Previously, Baofeng was known to be China's most prominent video platform but has recently transformed into a video streaming portal in order to compete with the rising competition of internet portals. Youku Tudou and iQiyi are just two of its popular streaming investors who merely make revenues on "user generated content."

Like Us on Facebook

Baofeng TV may have swirled past the intricate competition between online videos, but the embattled video platform may reportedly soon face another competition where smart Tvs are concerned.

According to Technode, the tough competition may prove a little too much for Baofeng as the company has previously relied on advertisements for their revenues. At least 99 percent of their revenues has solely been taken from several ads. The joint venture will subsequently put Haier's Smart Tv, an affiliate of Tongshuai Chuangzhijia under Baofeng TV. The acquisition will reportedly put Baofeng in the list of shareholders, mainly the largest shareholder under Tongshuai Chuangzhijia with a 50 percent stake and roughly around $40 million at stake.

While Tongshuai Chuangzhijia still have a stake in the shares, Alpha Animation and Ririshun will also have a share in the company with 10 percent and 21 percent, respectively. Haier's decision to tie up with Baofeng TV relives them from the imminent downfall of sales, when it comes to competitions such as Skyworth, Hisense and TCL. All three have tapped their business in the world of Smart TV and Haier's collaboration with Baofeng will increase their chance of a better revenue. 

Baofeng TV is seen to compete against Xiaomi and LeTV, especially now that CEO of Baofeng Feng Xin admitted that the operational features of Baofeng TV and the way it is modeled is very similar to Xiaomi. Baofeng has not only invested on Smart TV but also launched a virtual reality headset in their stance to make a difference.

Tagsbaofeng, new smart tv, Haier, smart television