Allen Yu, LEDinside analyst in Shanghai, talks about Chinese LED display manufacturers shift into the media sector in this article. Yu gives insights about the pros and cons for manufacturers transiting into the media sector. 

After experiencing fast expansion in 2010, the LED display industry went through an integration period. Most companies experienced a period of low gross profit margins, slow increasing revenue, and chaotic competition within the industry. The market generally believed that the LED display industry had no competition barriers, serious homogenization, and low investment prices. However, after in-depth exploration of the industry chain, we discovered that the benefits of export oriented LEDs come from their superiority in cost, technology horizontal development, and the expanded market space in other countries. With the growth rate continuing a positive trend for the future, investors should pay appropriate attention to the affiliates that will benefit from the rapidly expanding export businesses.