Companies have to work out way for customers to watch rival’s shows
By Chua Hian Hou 13 March 2010
One set-top box - that is all you need to watch cable TV programmes from either StarHub or SingTel.
This is a major departure from the current situation, where StarHub cable TV customers cannot watch programmes telecast on rival SingTel’s mio TV.
To watch shows from both, you would need an account with both players and pay for two set-up boxes.
But yesterday, the Government mandated that the companies work out a way to allow customers of one to watch shows from the other, without having to install two boxes in their homes or open another account.
Consumers will also pay identical fees for watching a programme, as providers will not be allowed to bill a rival’s customers a higher fee.
The change will not happen right away, though.
So fans of English Premier League football will still have to sign up with SingTel, which beat StarHub to secure the rights to telecast the matches live for the next three seasons, until 2013.
This major overhaul in how pay-TV content is bought, sold and distributed will apply only to content deals these providers inked from yesterday, which was when Acting Minister for Information, Communications and the Arts Lui Tuck Yew made the announcement.
‘It is not reasonable to apply such a measure retrospectively and therefore, it will not apply to existing agreements such as the 2010 to 2013 Barclay’s EPL broadcast rights,’ he told Parliament.
But many other programmes could be available earlier, as these companies are required to adjust their systems for such cross-carriage of exclusive content by September.
The change to how pay-TV content is bought, sold and distributed is prompted by a government study which found that the companies were hoarding too many programmes.
Out of 179 pay-TV channels today, only seven are common to both players.
Rear-Admiral (NS) Lui said the Government would prefer to leave the industry alone, but it had concluded the situation was ‘unlikely to self-correct in the near future, and steps need to be taken to address this market failure’.
Indeed, viewers have suffered in terms of convenience, choice and cost, with subscription fees for sports programmes, for example, rising from about $33 in 2000 to $74 today.
This new revision to the Media Market Conduct Code comes five months after SingTel wrested the rights to the EPL from StarHub, reportedly for $350 million. It prompted a public outcry as fans complained they would have to sign up for its mio TV service - and install another box - to watch the live matches.
Yesterday’s announcement did not go into such details as who bills the viewer for the exclusive programme he wants or how far in advance he must inform the service provider of the desired programme.
However, the major shift was welcomed by StarHub, which said it ‘fully supports the Government’s efforts’.
SingTel was circumspect, saying: ‘We will carefully review the details and actively engage the MDA (Media Development Authority) through the industry consultation process.’
MobileOne, which had indicated interest in providing pay-TV service, was enthusiastic, calling it a ‘positive development’ that gives consumers a greater variety of content at competitive prices.
Research firm Gartner’s Foong King Yew said that the changes should lead to lower prices for viewers.
His argument: ‘Telcos will bid for content deals rationally as no more is it a case of winner-takes-all.’
Insurance executive Dennis Chua, 39, is thrilled with the Government’s move.
‘It has finally acknowledged there is a problem and made the change. But I wish it had been done earlier so that I need not switch to SingTel to watch EPL.’
1 comment:
SingTel or StarHub, just one box needed
Companies have to work out way for customers to watch rival’s shows
By Chua Hian Hou
13 March 2010
One set-top box - that is all you need to watch cable TV programmes from either StarHub or SingTel.
This is a major departure from the current situation, where StarHub cable TV customers cannot watch programmes telecast on rival SingTel’s mio TV.
To watch shows from both, you would need an account with both players and pay for two set-up boxes.
But yesterday, the Government mandated that the companies work out a way to allow customers of one to watch shows from the other, without having to install two boxes in their homes or open another account.
Consumers will also pay identical fees for watching a programme, as providers will not be allowed to bill a rival’s customers a higher fee.
The change will not happen right away, though.
So fans of English Premier League football will still have to sign up with SingTel, which beat StarHub to secure the rights to telecast the matches live for the next three seasons, until 2013.
This major overhaul in how pay-TV content is bought, sold and distributed will apply only to content deals these providers inked from yesterday, which was when Acting Minister for Information, Communications and the Arts Lui Tuck Yew made the announcement.
‘It is not reasonable to apply such a measure retrospectively and therefore, it will not apply to existing agreements such as the 2010 to 2013 Barclay’s EPL broadcast rights,’ he told Parliament.
But many other programmes could be available earlier, as these companies are required to adjust their systems for such cross-carriage of exclusive content by September.
The change to how pay-TV content is bought, sold and distributed is prompted by a government study which found that the companies were hoarding too many programmes.
Out of 179 pay-TV channels today, only seven are common to both players.
Rear-Admiral (NS) Lui said the Government would prefer to leave the industry alone, but it had concluded the situation was ‘unlikely to self-correct in the near future, and steps need to be taken to address this market failure’.
Indeed, viewers have suffered in terms of convenience, choice and cost, with subscription fees for sports programmes, for example, rising from about $33 in 2000 to $74 today.
This new revision to the Media Market Conduct Code comes five months after SingTel wrested the rights to the EPL from StarHub, reportedly for $350 million. It prompted a public outcry as fans complained they would have to sign up for its mio TV service - and install another box - to watch the live matches.
Yesterday’s announcement did not go into such details as who bills the viewer for the exclusive programme he wants or how far in advance he must inform the service provider of the desired programme.
However, the major shift was welcomed by StarHub, which said it ‘fully supports the Government’s efforts’.
SingTel was circumspect, saying: ‘We will carefully review the details and actively engage the MDA (Media Development Authority) through the industry consultation process.’
MobileOne, which had indicated interest in providing pay-TV service, was enthusiastic, calling it a ‘positive development’ that gives consumers a greater variety of content at competitive prices.
Research firm Gartner’s Foong King Yew said that the changes should lead to lower prices for viewers.
His argument: ‘Telcos will bid for content deals rationally as no more is it a case of winner-takes-all.’
Insurance executive Dennis Chua, 39, is thrilled with the Government’s move.
‘It has finally acknowledged there is a problem and made the change. But I wish it had been done earlier so that I need not switch to SingTel to watch EPL.’
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