October 14, 2009
SingTel’s surprising announcement Monday on pricing for Premier League broadcasts was timely, coinciding as it did with our TelcoTV event, which wrapped up yesterday; certainly there were a lot of questions around the logic of offering up football (soccer) matches at such a low price.
Basically, SingTel’s offer consists of:
- All Premier League matches;
- A set-top-box thrown in for free
- An unbundled US$17 price tag – meaning households need only buy the football, not a basic subscription.
The latter is significant because it will negatively impact bottom lines considering the operator probably paid somewhere in the neighborhood of US$200-250m for three-year broadcast rights. Assuming the bid was at the high end, it would probably need to charge about US$35, $20 and $17, respectively, over the next three seasons just to break even on the content (based on our initial take-up estimates after SingTel CEO Allen Lew’s announcement Monday).
Yet we like what we see because it shows:
- A sensitivity to consumers and football fans, who are currently locked into StarHub, the pay-TV incumbent and current EPL rights holder;
- An understanding that for IPTV to succeed, set-top boxes must be offered up for free to drive adoption and provide a storefront in the home for programming, applications and services.
Considering SingTel’s other announcements around ESPN, Star Sports and ESS News, we are likely to see the operator enjoy massive market share gains next year. And having Premier League football as a loss leader will allow it to reach scale. Clearly, SingTel knows the tendency of viewers to channel surf – making this prime time to encourage the peek-and-purchase dynamic.
— Charles Moon, Manager, AP
Asia-Pacific Media Forecasts
Forecasts updated quarterly
With telcos and mobile operators increasingly offering TV and video services, Pyramid Research’s Media Forecasts are designed to provide competitive intelligence on the pay-TV and mobile TV dynamics for 60 countries as well as regionally and globally. The Media Forecasts track demand patterns for free and paid TV services over terrestrial, satellite and mobile platforms worldwide, providing market share information at both the technology and operator levels as well as five-year adoption and revenue projections.
Asia-Pacific Fixed Operator Market Share Forecasts
Forecasts updated quarterly
Our Fixed Operator Market Share Forecast products provide a complete picture of wireline voice and data communications in each of 14 Asia Pacific markets. The Excel output includes five years of historical data and five years of market projections for metrics such as fixed lines, voice telephony, VoIP, circuit-switched lines, ARPM, narrowband, broadband, Internet accounts, fiber, DSL, cable and revenue — most of them broken down for the mobile operators in the respective markets. We believe our Fixed Operator Market Share Forecasts are superior because they capture granular data gathered through extensive field research and use a thorough methodology consistently applied to all markets.
Pay-TV Video on Demand in Emerging Markets: Service Provider Strategies, Business Models and Five-year Adoption Forecasts
Research Report published October 2009
At year-end 2008, pay-TV households in emerging markets totaled 426m, up 16% from 2007. By 2014, we expect emerging markets to account for 69% of all pay-TV households. This report looks at the pay-TV VoD business model for emerging-market operators, analyzing its value proposition, different approaches to offering VoD and the overall market opportunity. The objective is to assess whether service providers need to take on the challenge of VoD or can make do with pay-TV alone.