A industry source said: “The common perception is that StaHub will gain more out of it but in the long run it is SingTel that stands to gain more. If StarHub could use the Barclays Premier League (BPL) content then it would have helped the pay-TV operator. Besides BPL, StarHub has all the premium content and exlcusive relationships with the most popular channels which SingTel doesnt. What SIngTel has is a strong mobile and online platform and this code could only help strengthen SingTel’s mio TV platform attracting more subscribers.”
Debbie Lee, managing director of Green Worldwide, a start-up outfit in marketing, business and media consultancy, said: "This code is a huge step for the media industry in Singapore and it could completely change its dynamics. In the short term one pay-TV operator could benefit more than the other but in the longer run it will even out the competition. The biggest winner in this is the consumer”.
Lee said the development could also have a huge impact on the business plans of SingTel and StarHub who will have to factor-in this new ruling. “I think both the telco’s will need to tweak their business and their business plans for the year.”
Industry sources say that even though on the face of it it could mean more choices, more content and lower prices, it could also trigger the opposite trend.
Another source added: “It appears like there will more choice, more content and lower prices for consumers but I think that the motivation for pay-TV operators to get exclusive content will only decrease as they will not be able to attract new subscribers based on new content.”
However, Lee thinks that telco’s should push for more vairiety and more channels. “I think it’s the sports content that has the drivers appeal and could motivate people to change operators. Other kind of niche content will have its niche viewers and will hardly impact the subscription despite being a revenue stream.”
Most experts however agree that in the long run this measure could encourage pay-TV operators to differentiate themselves on the basis of competitive pricing and the quality of their service and not solely on content.
Last Friday, a public interest obligation released by the government had instructed pay-TV providers to cross-carry each other's exclusive content. According to the code, if SingTel acquires a new channel exclusively, it must make this channel available to StarHub. Both the operators will need to carry this programme at the same time without making any modifications to the content given by the rights holder.
Debbie Lee, managing director of Green Worldwide, a start-up outfit in marketing, business and media consultancy, said: "This code is a huge step for the media industry in Singapore and it could completely change its dynamics. In the short term one pay-TV operator could benefit more than the other but in the longer run it will even out the competition. The biggest winner in this is the consumer”.
Lee said the development could also have a huge impact on the business plans of SingTel and StarHub who will have to factor-in this new ruling. “I think both the telco’s will need to tweak their business and their business plans for the year.”
Industry sources say that even though on the face of it it could mean more choices, more content and lower prices, it could also trigger the opposite trend.
Another source added: “It appears like there will more choice, more content and lower prices for consumers but I think that the motivation for pay-TV operators to get exclusive content will only decrease as they will not be able to attract new subscribers based on new content.”
However, Lee thinks that telco’s should push for more vairiety and more channels. “I think it’s the sports content that has the drivers appeal and could motivate people to change operators. Other kind of niche content will have its niche viewers and will hardly impact the subscription despite being a revenue stream.”
Most experts however agree that in the long run this measure could encourage pay-TV operators to differentiate themselves on the basis of competitive pricing and the quality of their service and not solely on content.
Last Friday, a public interest obligation released by the government had instructed pay-TV providers to cross-carry each other's exclusive content. According to the code, if SingTel acquires a new channel exclusively, it must make this channel available to StarHub. Both the operators will need to carry this programme at the same time without making any modifications to the content given by the rights holder.
This includes all the advertisements and branding that the rights holder may have embedded into the programme. The operator will need to pay the rights holder for the content and it will be left to the telcos to work out a cost for this.
For consumers, this means that they can watch an exclusive channel through just one pay-TV retailer.
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