Vietnam’s pay-TV market achieved a revenue of about 4,500 billion VND in the first 6 months of 2022 with 16.9 million subscribers.
According to the Department of Radio, Television and Electronic Information (Ministry of Information and Communications), in the first half of 2022, there was 1 more licensed enterprise to provide pay-TV services. Thus, there are currently 38 enterprises providing this service in the country.
The report of the television management agency shows that the revenue of providing pay-TV services in the first half of 2022 is estimated at 4,500 billion VND. The Department of Radio, Television and Electronic Information expects the revenue of the whole year 2022 to reach about VND 9,300 billion, a slight increase compared to the figure of VND 9,200 billion in 2021.
As of June, Vietnam currently has 16.9 million pay-TV subscribers. If it reaches 17 million subscribers this year, the number of subscribers will not grow significantly.
Meanwhile, the revenue of providing pay-TV services on the Internet reached about VND 350 billion in the first half of the year and could reach VND 700 billion in the whole year of 2022, slightly up from VND 634 billion last year.
Pay-TV service revenue of domestic enterprises increased slightly while continuing to face stiff competition from cross-border platforms such as Netflix, YouTube, Iflix, Apple, WeTV, IQIYI, etc. Cross-border platforms attract Vietnamese users with rich, high-quality content.
Thanks to strong financial potential, foreign platforms are willing to pay large sums to buy the rights to good local content and provide exclusive rights at a reasonable fee. Meanwhile, they are not subject to any regulations or censorship like domestic service providers. This causes domestic pay-TV to “lose” at home.
In fact, during the past few years, pay-TV businesses have repeatedly raised their opinions about the situation of “reverse protection” causing market share to fall into the hands of foreign enterprises.
According to the Ministry of Information and Communications, the competition between domestic enterprises and cross-border OTT platforms is “not on the same level” when foreign enterprises have not been managed (licensing, paying fees, taxes, editing content). …). But experts also said that Vietnamese enterprises still have many “lack” and “weak” points.
New regulations have been and will be added to manage cross-border platforms operating in Vietnam. These platforms are now required to declare and pay taxes when providing services with tax authorities. In the near future, there will be a new regulation that requires businesses providing OTT VoD services via the cross-border Internet in Vietnam to carry out procedures for licensing, content editing as well as tax and fee obligations… for Vietnamese enterprises.
When there is a new management mechanism, domestic and foreign enterprises will do business on the same legal ground, avoiding reverse protection.
@ Cafef