Asiya Bakht
May 14, 2010

Pay-TV operators in Singapore respond to CASBAA's comments

Singapore - Pay-TV operators in Singapore have responded to Cable & Satellite Broadcasting Association of Asia's (CASBAA) viewpoint on how the new regulations launched by the Media Development Authority (MDA) are likely to impact Singapore's status as a regional media hub.

Pay-TV operators in Singapore respond to CASBAA's comments
A press statement from SingTel stated that the pay-TV operator "is supportive of the MDA’s proposal to introduce a mandatory cross-carriage obligation and considers that the proposal represents a step towards greater competition in the pay-TV market."

SingTel says that it has made several suggestions in its submission to MDA that are intended to improve the operation of the proposed cross-carriage obligation for the MDA’s consideration. "We believe that the new regulations will level the playing field and disagree that it will impede technological advancement. Furthermore, the cross-carriage environment will provide consumers with flexibility and wider choices in the pay-TV market."

Meanwhile Caitlin Fua, StarHub’s senior manager of corporate communications, said that the pay-TV operator understands "the positions of both CASBAA and the MDA."

"From a StarHub perspective, our objective is to ensure the new cross-carriage regime is workable and that it allows us to deliver benefits to our customers."

Meanwhile in response to CASBAA's viewpoint, MDA has noted that the "measure does not impose any form of compulsory licensing of content."

According to this statement, retailers are "leveraging on another retailer's platform to widen the distribution of its channels. Content owners and pay TV retailers continue to have full freedom to negotiate free and fair contracts as they wish."

CASBAA, which represents the interests of 130 content producers, pay-TV platform operators and equipment-and-service suppliers across 16 Asian markets, announced yesterday that MDA's cross carriage regulation can risk Singapore's position as a regional media hub. 

According to Simon Twiston Davies, the regulation will not only damage the interests of every content owner and distributor but also consumers by jeopardising "long-term access to a whole generation of new video content."

Sources within the media industry have rejected CASBAA's outburst as a "storm in a teacup".

An source within a media agency who did not want to be named said: "The media owners will cry foul at anything that reduces their margins. Singapore Government has made a decision and it is unlikely to change it. It’s a matter of take it and leave it. Some players might leave. Most will not. After all Singapore is a very profitable market and it is difficult for any broadcaster to take that decision."

According to this source, even though CASBAA is an influential body, its comments can't be taken to seriously.

"If FIFA can come around and lower its offer then the other content providers can do the same. The decision they have to make is whether they want to take whatever they can get from Singapore or do without the revenue. The cross-carriage regulation will in the long run help advertisers and the consumers and that is the significant issue."

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