Having realized that the increase of the number of subscribers in big cities has been slowing down; pay-TV service providers are considering approaching the rural market.
Statistics show that there are more than 20 million households–TV watchers in Vietnam. Of this amount, only 13.5 percent use pay-TV services, much lower than the regional average level of 40-60 percent. Therefore, experts have every reason to believe that the market has real potential, predicting that more new service providers would join the market in the future.
In early 2012, AVG officially joined the pay-TV market, using digital terrestrial TV and digital TV satellite technologies in the two largest cities, Hanoi and HCM City.
As a new comer, who has to compete fiercely with the “elder brothers”, AVG has to make heavy investment to ensure the high quality of services. The trial broadcasting for one year alone would need 2.5 million dollars.
President of AVG Pham Nhat Vu said that AVG strives to attract 500,000-3 million subscribers after three years. AVG needs one million subscribers to reach the breakeven. To date, AVG has injected 1500 billion dong in the services, hoping that it can break even after 4-5 years at the soonest, or 7-8 years at the latest.
Viettel, a giant in the telecom market, has also jumped into the market. Currently, Viettel is providing IP TV services, but it has not attracted many subscribers due to the specific characteristic of the IPTV technology.
Viettel’s Deputy General Director Duong Van Tinh said at a recent workshop that providing cable TV service would be a new task for Viettel to implement this year. The company has found that the percentage of households using pay-TV services is relatively low in Vietnam, which means that the opportunities for Viettel would be great.
Analysts believe that Viettel would be a redoubtable rival in the pay-TV market with its broadband fiber transmission infrastructure system reaching out to every commune and ward, which allows it to quickly provide TV services throughout the country.
The potentials of the new land
Though highly appreciating the capability of Viettel, analysts have warned that the giant would meet difficulties in big cities, the market where the “early birds” have been looking for bait for several years already.
Viettel’s General Director Hoang Anh Xuan said on Thoi bao Vi tinh Saigon that Viettel would have to find flexible business modes, so that even low income earners can also use cable TV services. It is very likely that Viettel would offer different service packages to fit different groups of clients in rural areas. Besides, it is also considering applying many different technologies.
AVG has also been targeting the rural market. It signed a contract with the Vietnam Post Corporation (VNPost), under which VNPost would help develop subscribers, distribute the equipments for receiving TV digital signals and collect fees for AVG. It is obvious that AVG hopes to reach out to different localities in the countries through the VNPost’s network of 16,000 post offices across the country.
Since March 1, AVG has expanded its services to some provinces including Hung Yen, Bac Ninh, Nam Dinh, Thua Thien-Hue, Quang Nam, Da Nang, Long An, Dong Nai and Binh Duong.
K+, a well known TV brand, has also marched toward the rural market. After a period of providing services, K+ has adjusted the fees of the service packages to lure more users.
Cao Van Liet, General Director of VSTV, the owner of K+ brand, said that the Access+ package with the monthly fee of 50,000 dong has attracted a lot of clients in small provinces.
|< Prev||Next >|
» FDI sector lifts up hardware industry
» Pay-TV service providers may fail to hamper telcos to jump into TV market
» HD television: the market still open
Latest Category Posts
- RIP iPhone 5C: Apple may discontinue the colorful phone in 2015
- Windows 10 says bye-bye to FLAC from MP3 conversion with native FLAC format support
- OnePlus lets you have a say in its Black Friday discounts
- Could Bing or Yahoo replace Google as Apple's default search engine?
- Sony has e-paper smartwatch up its sleeve, report says
- Twitter is now tracking the apps you download
- Samsung Electronics to buy back $2B in shares
- LG names new mobile boss in annual reshuffle
- LG to launch its own take on the Surface Pro
- Few Vietnamese companies receive tech transfer from foreign companies
Random Category Picks
- BlackBerry loses £127 million in its second quarter
- Apple device sales 'steady during run-up to iPhone 6 launch'
- Microsoft starts rolling out Skype for Web browsers
- Oppo sees potential for high-end phones in emerging markets
- Celebs threaten to sue Google over response to nude-image hack
- Samsung to speed up restructure by selling defense business
Popular Category Posts
- Toshiba's new robot can speak in sign language
- Vietnamese people ill-prepared to enter nuclear era, say experts
- Vietnamese firms compete with tech giants in smartphone market
- Users frustrated by Apple iOS update
- Chinese-made tablet explodes while charging in HCMC
- BKAV launches first online web directory in VN
- Vietnam launches first commercial microchip
- Teens love iPhone more, use Facebook a lot less, says survey
- South Korea to transfer 167 technologies to Vietnam
- Cable TV loses foreign clients due to illegal OTT services
- Telecom devices presented to Tien Giang fishermen
- Facebook’s new sticker feature unpopular with Vietnamese netizens
- Apple iPad Air 2 leak claims device will be thinner and use A8 chip
- RoK-Vietnam Incubator Park to open next year
- Vietnam attends WIPO meeting in Switzerland
- Company posts 985 images from security cameras in Vietnam on internet
- Viettel attends tech exhibition in South Africa
- Made-in-Vietnam 3D printing machine to hit market in near future
- Nokia Here Maps beta app launches for Samsung Galaxy smartphones
- Opera Mini will be available on Samsung Gear S