Despite Canal+ facing prolonged losses in Vietnam and openly considering withdrawal, its joint venture K+ has issued a licensing ultimatum, demanding broadcasting partners pay sharply higher fees for its premium channels, particularly those carrying English Premier League rights.

On August 15, pay-TV operators distributing K+ content confirmed receiving a formal letter from Vietnam Satellite Digital Television (VSTV), operator of the K+ brand. The notice followed the expiration of contracts on July 31, 2025.

According to the letter, K+ argued that its premium content, especially live matches and highlights of the English Premier League, was being shared across too many partners and platforms, diluting its value. The company proposed restricting access to fewer distributors while significantly increasing wholesale fees.

K+ claimed current retail package prices are “lower than a cup of coffee” and fail to reflect the true value of content, leaving partners with little to no profit. It stressed that the co-distribution model used so far limits subscriber growth in Vietnam, where consumers favor bundled packages over standalone channels.

The new approach, K+ said, would give its selected partners a stronger competitive advantage. High-quality sports content could serve as both a subscriber retention tool and a driver of average revenue per user (ARPU).

A distributor revealed that K+ split its new licensing into two tiers: one package for two partners and another for three. Under either scenario, wholesale prices would rise dramatically.

Telecom operators, however, criticized the proposal as unrealistic. One provider told VietNamNet that K+’s new licensing fees were nearly ten times higher than the revenue they currently collect from subscribers for K+ packages.

“In reality, customers subscribe to K+ mainly for Premier League matches. The other channels offer little added value. With these new fees, we would be forced to raise retail prices beyond what the market can bear,” the provider said.

Meanwhile, Canal+, parent of K+, reported declining subscribers and revenues in Vietnam in its H1 2025 financial statement, citing a canceled wholesale deal and a broader downturn in the pay-TV market. The company admitted it was evaluating its Vietnam business, warning losses had reached an “unsustainable” level that could lead to major restructuring or even withdrawal.

Thai Khang