In a move aimed at making previously exclusive content accessible and cheaper for viewers and consumers, SingTel’s mio TV and StarHub are likely to have to radically revamp their operations.
High costs for content and subscriptions have long been a contentious issue among pay-TV subscribers in the Lion City. The cost of watching sports programming alone has risen from about US$24 in 2000 to $53 in recent times.
Under the revised Media Market Conduct Code, pay-TV providers must now charge all viewers the same fee for exclusive content they have the rights to, in a move that is certainly set to go down well with local subscribers.
More interestingly, the new regulations could also pave the way for firms like M1, Singapore’s third-largest telco or other new entrants into the local pay-TV market. Such companies will now have a lower barrier of entry and might start to muscle in on the local market.
“This code is a huge step for the media industry in Singapore and it could completely change its dynamics,” says Debbie Lee, managing director of media consultancy Green Worldwide. “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 undoubtedly the consumer.”
Channels and networks are, however, currently unsatisfied with the new ruling and seem to disagree that the new approach will indeed be beneficial to the industry.
“We think it was unfortunate that content providers were not consulted on the issue and we don’t believe the amendments which regulate how exclusive content is managed are appropriate in a market economy,” says a spokesperson representing AETN. “It is unclear how the amendments will be implemented and what the exact impact will be. But it is likely that the amendments will disadvantage the broadcasting industry in Singapore, and the consumer.”
Ricky Ow, SVP and GM, of SPE Networks Asia, adds: “We believe the best option would have been to allow market forces to decide. After all, a free market will ensure irregularities or imbalances get self-corrected over time.”
While it remains to be seen how SingTel and StarHub will implement the changes to their pay-TV operations, one media agency source has suggested that the former will be better served. “If StarHub could have used the Barclays Premier League (BPL) content that it recently lost, then this move would have helped,” he says. “But in the long run, it is SingTel that stands to gain.
Besides the BPL, StarHub has all the premium content and exclusive relationships with the most popular channels, which SingTel does not currently enjoy. Now, SingTel will finally have the opportunity to get hold of such channels to boost its mio TV offering. Take into account integration with its massive mobile and broadband subscriber bases and platforms, and this code can only help strengthen SingTel’s offering to attract more subscribers.”
Another media agency source is less optimistic, stating: “It might appear that there will be more choice, more content, and lower prices for consumers but I think that the motivation for pay-TV operators to get exclusive content will actually decrease, as the two providers won’t be able to attract subscribers based on new content.”
Lee, however, feels that the two Singaporean operators should still push for greater variety and more channels. She thinks that sports content will continue to drive appeal and could motivate people to change operators, while other forms of niche content that were previously unavailable in the market will always continue to draw new audiences and subscribers.
In the longer term, most industry watchers agree that the latest ruling will encourage pay-TV operators to differentiate themselves on the basis of competitive pricing and the quality of their service as opposed to relying solely on content.
> StarHub claims the new MDA policy “appears similar to StarHub’s proposal of November 2009 when we first suggested the idea of carrying future BPL broadcast carriages over our cable TV network. StarHub fully supports the Government’s efforts to ensure fair and reasonable content costs.”
> SingTel has promised to “carefully review the details and actively engage the MDA through the industry consultation process” on the code.
Got a view?
Email [email protected] or [email protected]
This article was originally published in the 8 April 2010 issue of Media.
High costs for content and subscriptions have long been a contentious issue among pay-TV subscribers in the Lion City. The cost of watching sports programming alone has risen from about US$24 in 2000 to $53 in recent times.
Under the revised Media Market Conduct Code, pay-TV providers must now charge all viewers the same fee for exclusive content they have the rights to, in a move that is certainly set to go down well with local subscribers.
More interestingly, the new regulations could also pave the way for firms like M1, Singapore’s third-largest telco or other new entrants into the local pay-TV market. Such companies will now have a lower barrier of entry and might start to muscle in on the local market.
“This code is a huge step for the media industry in Singapore and it could completely change its dynamics,” says Debbie Lee, managing director of media consultancy Green Worldwide. “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 undoubtedly the consumer.”
Channels and networks are, however, currently unsatisfied with the new ruling and seem to disagree that the new approach will indeed be beneficial to the industry.
“We think it was unfortunate that content providers were not consulted on the issue and we don’t believe the amendments which regulate how exclusive content is managed are appropriate in a market economy,” says a spokesperson representing AETN. “It is unclear how the amendments will be implemented and what the exact impact will be. But it is likely that the amendments will disadvantage the broadcasting industry in Singapore, and the consumer.”
Ricky Ow, SVP and GM, of SPE Networks Asia, adds: “We believe the best option would have been to allow market forces to decide. After all, a free market will ensure irregularities or imbalances get self-corrected over time.”
While it remains to be seen how SingTel and StarHub will implement the changes to their pay-TV operations, one media agency source has suggested that the former will be better served. “If StarHub could have used the Barclays Premier League (BPL) content that it recently lost, then this move would have helped,” he says. “But in the long run, it is SingTel that stands to gain.
Besides the BPL, StarHub has all the premium content and exclusive relationships with the most popular channels, which SingTel does not currently enjoy. Now, SingTel will finally have the opportunity to get hold of such channels to boost its mio TV offering. Take into account integration with its massive mobile and broadband subscriber bases and platforms, and this code can only help strengthen SingTel’s offering to attract more subscribers.”
Another media agency source is less optimistic, stating: “It might appear that there will be more choice, more content, and lower prices for consumers but I think that the motivation for pay-TV operators to get exclusive content will actually decrease, as the two providers won’t be able to attract subscribers based on new content.”
Lee, however, feels that the two Singaporean operators should still push for greater variety and more channels. She thinks that sports content will continue to drive appeal and could motivate people to change operators, while other forms of niche content that were previously unavailable in the market will always continue to draw new audiences and subscribers.
In the longer term, most industry watchers agree that the latest ruling will encourage pay-TV operators to differentiate themselves on the basis of competitive pricing and the quality of their service as opposed to relying solely on content.
Pay-TV content war
> In October 2009, SingTel won the exclusive broadcast rights for the Barclays Premier League football tournament thus triggering a protracted content war with StarHub, which had previously held the rights.> StarHub claims the new MDA policy “appears similar to StarHub’s proposal of November 2009 when we first suggested the idea of carrying future BPL broadcast carriages over our cable TV network. StarHub fully supports the Government’s efforts to ensure fair and reasonable content costs.”
> SingTel has promised to “carefully review the details and actively engage the MDA through the industry consultation process” on the code.
Got a view?
Email [email protected] or [email protected]
This article was originally published in the 8 April 2010 issue of Media.
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