VietNamNet Bridge – VTC, AVG and K+, the three big guys in the digital TV market, have been competing fiercely to attract clients by lowering the prices of set top boxes (STB), offering more TV channels and improving program contents.

Selling STBs at a loss

All the three televisions now accept to sell STBs at a loss to attract more clients. AVG “generously” lends STBs to clients for 18 months without required fees. Meanwhile, VTC and K+ affirmed that with the current selling prices, they incur losses.

Of the STB products available on the market, K+’s devices prove to be the most expensive: VND1.5 million per SD and VND2 million per HD product.

VTC offers lower prices, VND1.99 million per HD product.  Meanwhile, a SH9 STB for SD standard is now priced at VND990,000. The product has been advertised as compatible to the Mpeg4 standard, which allows having higher quality of images and sound than the Mpeg2 standard of the other SD STBs now available on the market.

Competing in channel packages

The providers prove to spend most money on channel packages, which they believe the most important thing to attract clients. Pay-TV users also said this is the first thing they would consider when choosing digital TV services.

The long term (12-month) subscription packages are the most wanted now. K+’s packages are the most expensive in the market. The subscribers of Access package (60 SD channels), for example, have to pay VND70,000 a month, and the subscription extension fee of VND780,000.

As for Premium+ package, the figures are VND190,000 and VND2.28 million, and for HD+ package, they are 270,000 and VND3.24 million.

The high fees are the biggest barrier that make people, who want to access K+’s services, shrink back.

While AVG is not the television that offers the highest number of TV channels, it is believed to have the most diversified service packages.

VTC remains the digital TV service provider with provide the highest numbers of channels for all the service packages.

The subscription is only VND60,000 for SH9 with 90 SD channels. As for HD STBs, the monthly subscription fee is VND100,000, for which clients can enjoy 15 HD channels and 90 SD programs.

A drawn battle

Analysts still cannot say who is leading the digital TV market, because each of the service providers has its own advantages.

K+, though setting the highest monthly subscription fees, holds the copyright for broadcasting of the British premier league, which helps attract a huge number of sports fans.

AVG attracts clients by lending STBs for 18 months, which allows reducing the initial costs subscribers have to spend.

Meanwhile, VTC highlights both the high number of channels and programs’ quality as its competitive edges. Offering more SD and HD channels than other service providers, applying Mpeg4 standards, VTC brings high quality products at reasonable prices.

VTC’s subscribers still can watch some essential TV channels when the subscriptions get expired. Meanwhile, the other two service providers will cut services if subscribers delay the payment.

A report by the Ministry of Information and Communication showed that there are 3.7 million pay-TV subscribers, bringing the total turnover of VND53 trillion, while there were only 79,000 subscribers in 2003.

Chi Mai