In May 2006, Low Ka Hoe was given a job that some thought would be beyond him. He was appointed director of a new pay-TV operator that was to challenge a well dug-in monopoly. More than that, he was asked to play a lead role in transforming the largest Asian telecommunications firm outside of China into an integrated media company.
That wouldn’t have seemed quite so hard if Low had had any experience in, or of, the media business. Or knew much about acquiring or producing content. But he didn’t. What he knew plenty about, though, was the nature and ambition of his employer.
Low began his career with SingTel 13 years ago, at a time when the Temasek-backed telco was already the largest company in Singapore. He has filled all sorts of management roles since. From retail sales to mergers and acquisitions, Low has seen the company balloon into a regional giant that boasts subsidiaries from India to Indonesia.
When SingTel entered Singapore’s pay-TV market with the launch of mio (More In One) TV in July last year, it found itself in an unfamiliar position. It was not the number one player, as it was (and still is) as a mobile, fixed-line and broadband provider.
Low is confident SingTel can be a force in TV, too. “We’re used to being market leader in all other businesses, and I don’t see why we can’t become leader in this one,” he says cheerily, despite a heavy cold.
But Low is only “reasonably happy” with the progress made so far. Mio TV attracted 27,000 subscribers five months after the launch, but has only just crept past the 45,000-subscriber mark 10 months later. Small beer compared to the 511,000 subscribers amassed by StarHub, which has had the luxury of a 13-year competition-free head start. Low is quick to point out, however, that pay-TV penetration in Singapore is still only 45 per cent. The market has grown by five per cent since mio TV’s launch, with both players adding new subscribers.
The same thing happened in Hong Kong when now TV launched against incumbent market leader i-Cable in 2003, he notes.
But faster growth is needed. “A pay-TV business is harder to manage if you don’t have scale. We are continuing to acquire content and subscribers, but we want to accelerate our growth rate. We’re not in this business to be a niche player,” he says.
So far, though, mio TV has only attracted a niche audience. Most subscribers are heartlanders who have signed up for mio TV’s Hokkien- or Indian-language programming, notes Low. “To be frank, it has been tougher to gain traction among young professionals who have less free time to watch television.”
The biggest issue has been content. Many Singaporeans grumble that while mio TV may be cheaper (customers do not have to buy a basic subscription package and only pay for what they want to watch), its programmes aren’t as good as StarHub’s.
Mio TV launched with a handful of ‘world firsts’ on its 33-channel line-up, among them BBC Knowledge and BBC Lifestyle. US shows such as Grey’s Anatomy and Lost have since been added to woo a more upmarket audience. Urban music channel Trace was brought in to attract younger viewers. But media buyers say StarHub will always have the upper hand while it has the broadcast rights to the English Premier League.
Low does not claim to be a content expert. Which is why he has hired a team to handle programme acquisitions for him. He agrees that football is a key driver of pay-TV in Singapore, but argues that the way people want to watch TV these days is equally important. Mio TV’s IP platform gives Singaporeans more flexibility - a word he does not tire of using - with on-demand services (which have since been introduced by StarHub). However, mio TV’s flexibility proposition has yet to sink in.
“Pay-TV is not a utility like broadband,” says Low. “People need to understand why they need it, and why they should change the way they watch it. This will take a while. The service needs to be well marketed.”
But some think it hasn’t been. Fiona Bartholomeusz, managing director of marketing agency Formul8, notes: “The advertising has been a mess and doesn’t gel with SingTel’s overall brand persona. To this day, most people I know still don’t know what mio is.”
Even so, it is likely that a household name such as SingTel will push the envelope eventually. And with the Singapore Grand Prix (which SingTel sponsored), mobile number portability and the launch of the iPhone behind it, SingTel can focus its efforts on up-selling its TV channels to existing customers.
It can also explore new ways people can watch mio TV, says Low. The iPhone, for instance, is an “interesting platform” on which mio TV content could be aired. “We have to make sure that if you miss our shows while you’re at work, you can watch them on your mobile on the way home.”
Low’s task ahead is not made any easier in the current climate. In August, SingTel reported a 5.3 per cent fall in net profit for the first half of the year, and there have been no signs of the situation improving. SingTel’s share price has taken a hammering in recent weeks. But Low is undaunted. He says that as mio TV does not come with a basic tier (like StarHub), people only pay for what they want, and that can save them money in tough times. His ambition for mio TV and SingTel remains the same, recession or no recession.
“We want to build mio TV into a major player. This is not a two- or three-year project. It’s a long-term ambition. But we’re not interested in creating a standalone TV business. We want mio TV to help transform SingTel into a world-class integrated multimedia company.”
Low Ka Hoe's CV
2006 Director, mio TV and content, SingTel
2005 Vice-president, products and mobile data services, Telkomsel
2003 Director, retail and channel sales, SingTel
2001 COO, SingTel global offices
1997 Director, SingTel strategic investments
That wouldn’t have seemed quite so hard if Low had had any experience in, or of, the media business. Or knew much about acquiring or producing content. But he didn’t. What he knew plenty about, though, was the nature and ambition of his employer.
Low began his career with SingTel 13 years ago, at a time when the Temasek-backed telco was already the largest company in Singapore. He has filled all sorts of management roles since. From retail sales to mergers and acquisitions, Low has seen the company balloon into a regional giant that boasts subsidiaries from India to Indonesia.
When SingTel entered Singapore’s pay-TV market with the launch of mio (More In One) TV in July last year, it found itself in an unfamiliar position. It was not the number one player, as it was (and still is) as a mobile, fixed-line and broadband provider.
Low is confident SingTel can be a force in TV, too. “We’re used to being market leader in all other businesses, and I don’t see why we can’t become leader in this one,” he says cheerily, despite a heavy cold.
But Low is only “reasonably happy” with the progress made so far. Mio TV attracted 27,000 subscribers five months after the launch, but has only just crept past the 45,000-subscriber mark 10 months later. Small beer compared to the 511,000 subscribers amassed by StarHub, which has had the luxury of a 13-year competition-free head start. Low is quick to point out, however, that pay-TV penetration in Singapore is still only 45 per cent. The market has grown by five per cent since mio TV’s launch, with both players adding new subscribers.
The same thing happened in Hong Kong when now TV launched against incumbent market leader i-Cable in 2003, he notes.
But faster growth is needed. “A pay-TV business is harder to manage if you don’t have scale. We are continuing to acquire content and subscribers, but we want to accelerate our growth rate. We’re not in this business to be a niche player,” he says.
So far, though, mio TV has only attracted a niche audience. Most subscribers are heartlanders who have signed up for mio TV’s Hokkien- or Indian-language programming, notes Low. “To be frank, it has been tougher to gain traction among young professionals who have less free time to watch television.”
The biggest issue has been content. Many Singaporeans grumble that while mio TV may be cheaper (customers do not have to buy a basic subscription package and only pay for what they want to watch), its programmes aren’t as good as StarHub’s.
Mio TV launched with a handful of ‘world firsts’ on its 33-channel line-up, among them BBC Knowledge and BBC Lifestyle. US shows such as Grey’s Anatomy and Lost have since been added to woo a more upmarket audience. Urban music channel Trace was brought in to attract younger viewers. But media buyers say StarHub will always have the upper hand while it has the broadcast rights to the English Premier League.
Low does not claim to be a content expert. Which is why he has hired a team to handle programme acquisitions for him. He agrees that football is a key driver of pay-TV in Singapore, but argues that the way people want to watch TV these days is equally important. Mio TV’s IP platform gives Singaporeans more flexibility - a word he does not tire of using - with on-demand services (which have since been introduced by StarHub). However, mio TV’s flexibility proposition has yet to sink in.
“Pay-TV is not a utility like broadband,” says Low. “People need to understand why they need it, and why they should change the way they watch it. This will take a while. The service needs to be well marketed.”
But some think it hasn’t been. Fiona Bartholomeusz, managing director of marketing agency Formul8, notes: “The advertising has been a mess and doesn’t gel with SingTel’s overall brand persona. To this day, most people I know still don’t know what mio is.”
Even so, it is likely that a household name such as SingTel will push the envelope eventually. And with the Singapore Grand Prix (which SingTel sponsored), mobile number portability and the launch of the iPhone behind it, SingTel can focus its efforts on up-selling its TV channels to existing customers.
It can also explore new ways people can watch mio TV, says Low. The iPhone, for instance, is an “interesting platform” on which mio TV content could be aired. “We have to make sure that if you miss our shows while you’re at work, you can watch them on your mobile on the way home.”
Low’s task ahead is not made any easier in the current climate. In August, SingTel reported a 5.3 per cent fall in net profit for the first half of the year, and there have been no signs of the situation improving. SingTel’s share price has taken a hammering in recent weeks. But Low is undaunted. He says that as mio TV does not come with a basic tier (like StarHub), people only pay for what they want, and that can save them money in tough times. His ambition for mio TV and SingTel remains the same, recession or no recession.
“We want to build mio TV into a major player. This is not a two- or three-year project. It’s a long-term ambition. But we’re not interested in creating a standalone TV business. We want mio TV to help transform SingTel into a world-class integrated multimedia company.”
Low Ka Hoe's CV
2006 Director, mio TV and content, SingTel
2005 Vice-president, products and mobile data services, Telkomsel
2003 Director, retail and channel sales, SingTel
2001 COO, SingTel global offices
1997 Director, SingTel strategic investments
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