SingTel vs StarHub:
Let the bidding war begin
SingTel confirmed yesterday talk that's been around for a while: it has submitted a bid for broadcast rights to the English Premier League (EPL) matches from August 2007 to May 2010. Rival StarHub, which will also announce earnings today, currently broadcasts EPL matches on cable TV via its content provider, ESPN StarSports. The question is: should the two really compete for the same programs, or should SingTel try to differentiate itself with fresh content.
IDC analyst Claudio Checchia said that whether two pay TV operators survive in Singapore depends largely on how they differentiate themselves.
"SingTel should offer quality channels to attract subscribers, especially from the 60% of Singapore households with no cable TV subscription, but not try and replicate the offerings on StarHub," he is quoted as saying.
I couldn't agree more – and it would be for the benefit of each company and consumers. The competition is already stiff. They already vie for customers for their internet and mobile phone services, but StarHub has the added advantage of offering discounts to customers who sign up for the bundled package of mobile, broadband and cable TV.
This is where SingTel wants to compete. It already has a six-month trial license from the Media Development Authority (MDA) to test a service which offers high definition content over its telecommunication network. It will begin the trial from this month, with content from partners MediaCorp Studios and MegaMedia.
There are already fears that the outcome of this bidding war might have an adverse impact on consumers.
According to an unnamed Macquaire research analyst, quoted in the New Paper the winning bid could be about S$150 mln, twice the amount StarHub is said to have paid to broadcast the EPL for the last three seasons on cable TV.
Consumers currently pay about S$15 per month for the StarHub Sports Group to watch EPL matches, on top of their basic cable TV subscription. The price war might have a trickle down effect where the winning bidder passes the cost down to consumers, making it more expensive to watch EPL matches.
And if it really desires to offer premium sports content, maybe it should bid for the rights to broadcast the Italian Serie A.
There have been petitions going around before, asking StarHub to broadcast the Serie A, to no avail.
The marketing people at SingTel could possibly advertise the Serie A as the league which produced all the players for World-Cup winning Italian squad, which unlike England (who also boasts of most of its players coming from EPL clubs), lost to a lowly Portugal.
Everyone loves a good David and Goliath tale.
Desiree Pakiam
ArchivesIDC analyst Claudio Checchia said that whether two pay TV operators survive in Singapore depends largely on how they differentiate themselves.
"SingTel should offer quality channels to attract subscribers, especially from the 60% of Singapore households with no cable TV subscription, but not try and replicate the offerings on StarHub," he is quoted as saying.
I couldn't agree more – and it would be for the benefit of each company and consumers. The competition is already stiff. They already vie for customers for their internet and mobile phone services, but StarHub has the added advantage of offering discounts to customers who sign up for the bundled package of mobile, broadband and cable TV.
This is where SingTel wants to compete. It already has a six-month trial license from the Media Development Authority (MDA) to test a service which offers high definition content over its telecommunication network. It will begin the trial from this month, with content from partners MediaCorp Studios and MegaMedia.
There are already fears that the outcome of this bidding war might have an adverse impact on consumers.
According to an unnamed Macquaire research analyst, quoted in the New Paper the winning bid could be about S$150 mln, twice the amount StarHub is said to have paid to broadcast the EPL for the last three seasons on cable TV.
Consumers currently pay about S$15 per month for the StarHub Sports Group to watch EPL matches, on top of their basic cable TV subscription. The price war might have a trickle down effect where the winning bidder passes the cost down to consumers, making it more expensive to watch EPL matches.
And if it really desires to offer premium sports content, maybe it should bid for the rights to broadcast the Italian Serie A.
There have been petitions going around before, asking StarHub to broadcast the Serie A, to no avail.
The marketing people at SingTel could possibly advertise the Serie A as the league which produced all the players for World-Cup winning Italian squad, which unlike England (who also boasts of most of its players coming from EPL clubs), lost to a lowly Portugal.
Everyone loves a good David and Goliath tale.
Desiree Pakiam
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