Vietnam's Pay-TV Landscape Evolves: Navigating the Shifting Tides of Content and Technology

The Vietnamese pay-TV market has undergone a remarkable transformation, with industry leaders and regulatory bodies working together to shape a sustainable future. As the post-COVID landscape presents new challenges, the sector has demonstrated resilience, recording a 4% increase in revenue and a 14% rise in subscriptions compared to 2022. This article delves into the key trends, insights, and strategic imperatives that are shaping the industry's trajectory.

Charting the Course: Vietnam's Pay-TV Landscape in Flux

Navigating the Evolving Landscape

The Vietnamese pay-TV market is fast approaching maturity, with total subscriptions reaching almost 20 million and a 5.8% annual growth since 2018. However, the landscape is undergoing a significant shift, with the clear winner emerging as OTT and IPTV. These platforms have become mainstream, with their revenue share accelerating from just 11% in 2019 to a projected 45% by the end of 2023, nearly catching up with traditional cable TV. Despite a sharp decline in subscriptions over the past 4 years and a modest subscription share of only 20% today, cable TV still accounts for over 50% of total pay-TV revenue.

Embracing the Digital Transformation

The rise of OTT and IPTV has been driven by the growing demand for on-demand and personalized content. Consumers are increasingly seeking content that caters to their preferences, and the digital platforms have been able to provide a more tailored viewing experience. This shift has prompted industry players to rethink their business models and strategies, focusing on developing new offerings that can effectively compete with the global OTT giants.

Regulatory Oversight and Industry Collaboration

The Vietnamese government, through the Authority for Broadcast and Electronic Information (ABEI), has played a crucial role in shaping the industry's direction. The Deputy Director General of ABEI, Nguyen Ha Yen, emphasized the importance of developing new business models for sustainable growth, highlighting the need for both regulatory bodies and industry leaders to work together to navigate the rapidly changing landscape.

Bundling and Differentiation: Keys to Acquisition and Retention

Pham Thanh Phuong, the Managing Director of Viettel TV360, highlighted the importance of bundling television and fixed broadband services as a strategic approach to acquiring a large customer base at a lower cost. However, to retain these customers, differentiation is key, particularly in the face of competition from international OTT platforms. Investing in local content has emerged as a crucial differentiator, allowing providers to create a unique value proposition for their audiences.

The Rise of Local Content and Multiplatform Viewing

Data from Kantar Media reveals that local content reigns supreme across linear viewing, with Vietnamese series also driving over 30% of non-linear viewing. This underscores the importance of understanding audience preferences and serving content that resonates with them, regardless of the platform. The study also highlighted the growing prominence of Connected TV (CTV) and smartphones as the two most important devices for content consumption, with CTV penetration reaching a striking 91% in the market.

Navigating the Global Content Landscape

Esther Nguyen, the Founder and CEO of POPS Worldwide, emphasized the challenges of operating in the digital world, where platforms have democratized content and opened up audiences to content from around the world. This has led to increased competition, as providers must now compete not only with local content but also with global offerings. Nguyen stressed the importance of focusing on the audience's lifetime value and serving content that aligns with their preferences, regardless of the platform.In conclusion, the Vietnamese pay-TV market is at a critical juncture, navigating the shifting tides of content and technology. Industry leaders and regulatory bodies must work in tandem to develop innovative business models, invest in local content, and leverage digital platforms to deliver a compelling and personalized viewing experience for consumers. By embracing these strategic imperatives, the industry can unlock new avenues for growth and ensure a sustainable future in the ever-evolving landscape of pay-TV.