Saturday, July 21, 2007

Channelnewsasia: SingTel targets pay-TV market leader position with mio TV

channelnewsasia writes about SingTel mio TV:

http://www.channelnewsasia.com/stories/singaporebusinessnews/view/289460/1/.html

SingTel targets pay-TV market leader position with mio TV
20 July 2007 2354 hrs (SST)

SINGAPORE : SingTel says it is targeting to grab the market leader position for pay-TV from competitor StarHub, with the launch of its mio TV service on Friday.

It is aiming to do this with a service that it says is cheaper, allows consumers to get new content faster, and gives more flexibility in the progammes they want to watch.

This is a launch that's long been anticipated - ever since it was known that SingTel would be given the licence to offer pay-TV services.

For the telco, it was a venture that allowed it to easily tap into its existing phone network in Singapore.

And for consumers out there, it would mean greater choice.

For a start, mio TV is offering 33 channels - promising greater flexibility in the way programmes can be watched, and also a higher level of immediacy.

SingTel's aim is clear - it wants no less than to overtake StarHub and become the market leader.

"We're not used to playing second to anybody, especially not in this market. We are financially responsible. We will get to number one position within a reasonable time, but I can't tell you when that will happen. We have our own internal targets for that," says SingTel's CEO Allen Lew.

To attract customers, it is offering competitive pricing - with subscription charges starting at just $15 a month without GST. ($16.05)

SingTel expects to complement that with additional income from advertisements on its channels.

"A significant percentage of the revenues will come from ad revenues and that will supplement the subscriptions that we get from different people who will subscribe to the pay channels and the VOD (video-on-demand),” says Lew.

"We will have ads that will appear on a large number of our pay-TV channels. And as far as VOD is concerned, browsing our library of films, there will be ads that will appear,” he adds.

SingTel says it is investing some $30 million on the infrastructure for its new offering this year.

That will bring its margins down slightly to the mid-40 percent level.

The launch of mio TV means that SingTel will now be able to compete with StarHub head-on on all three services - TV, data and voice.

With its presence in the region, SingTel has said that it could introduce its IPTV services into other neighbouring markets. - CNA /ls

Copyright © 2006 MCN International Pte Ltd

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