Competition mounts in paid TV market

Competition mounts in paid TV market

There is fierce competition at current in the paid television market as providers are running generous promotions to attract market share.

In April and May, Saigontourist cable television (SCTV) launched a huge campaign for customers in Hanoi. Accordingly, customers get two receivers and installment for the low price of VND80,000 ($4) a month. They pay only VND49,000 more for a second set-up.

In the case customers choose both cable and internet services, their monthly fee for a 2.5Mbs connection is only VND160,000 a month and for 4Mbs, only VND190,000.

SCTV has thrown the market a curveball as major providers such as VTVcab, K+, MyTV and HCTV are fast losing market share to the its highly preferential services.

Responding to the trend, VTVcab similarly launched a new promotion, its biggest ever in Hanoi. From March 28 to May 10 service fees for three TV cable lines pay only VND110,000 per month. Also, if a customer pays three months in advance, they will receive a month free.

Experts are saying the paid television market will continue this uptrend of promotions, particularly as new entrants such as Viettel TV, FPT and VNPT make their debuts.

In the past, with only a few suppliers, consumers were cornered into paying exorbitant fees for low-quality services. But now with so many competitors, providers are forced to reconsider their strategies.

In terms of services however, insiders have pointed out that there is little difference, as 70-80 per cent of the channels provided by cable companies are the same.

But Cao Van Liet, general director of K+, said customers want access to new, different channels, and this was also a major part of their decision making process.

Nguyen Hoang Linh, deputy general director of FPT Telecom, said that as paid television is an entertainment product, good quality programming will attract the most customers. “If television stations only focus on promotions to attract market share, they may find their strategy to be unsustainable,” he added.

vir