With K+ closing down, what's the situation like in Vietnam's pay-TV market now?

Vietnam's pay-TV and internet-based paid content (OTT/IPTV) market is undergoing a period of significant change. The departure of K+ marks a major shift in how the market operates and demonstrates the effectiveness of each pricing model.

From satellite- and fiber optic-based hardware infrastructure, the battle has shifted to online services. Vietnamese companies must now compete with large cross-border players and address the persistent problem of copyright infringement.

Customers increased, revenue decreased.

According to the Culture Newspaper , Le Quang Tu Do, Director of the Department of Radio, Television and Electronic Information (Ministry of Culture , Sports and Tourism), stated that the Vietnamese pay-TV market is facing difficulties. Revenue, a crucial indicator for businesses, is trending downwards.

Before K+, Clip TV also announced its closure. Photo: Khuong Nha.

Specifically, in 2024, companies in this sector generated approximately 10,017 billion VND in revenue, a decrease of 2.7% compared to the same period. It is projected that by the end of the year, revenue will slightly increase to 10,300 billion VND . Considering inflation, this figure reflects a period of stagnation.

The core problem lies in the low average cost per customer. Fierce competition among OTT platforms has led to price reductions. The average monthly fee, which used to be around 110,000-160,000 VND, has now dropped to 30,000-70,000 VND. This price can even decrease further if customers purchase long-term packages or bundled plans with network providers.

By the end of 2024, the market had approximately 21.4 million subscribers, a 2% increase compared to the same period. However, this number hides a contrasting reality. The traditional segment, with analog cable and DTH satellite, is experiencing a serious decline. Conversely, digital subscribers with OTT apps are booming, reaching 9.2 million subscribers, an increase of over 24%.

This shift reflects changing consumer habits. With a large internet user base, Vietnam has become one of the largest consumers of video content in Southeast Asia. Affordable network packages and high-speed 4G and 5G have made mobile phones the primary viewing device, replacing televisions.

Strategic weapons

K+'s departure from the market is one of the biggest events in Vietnam's pay-TV industry. Founded in 2009, the company pioneered the development of high-quality content and created a habit of watching licensed football matches. However, its overly high-priced subscription packages, coupled with its reliance on satellite dish systems, caused the company to fall behind, accumulating losses of thousands of billions of dong.

VTVcab's revenue also declined in the most recent fiscal year. Vietnam Cable Television Joint Stock Company's revenue fell to VND 1,970 billion , down from VND 2,131 billion in 2023. Similarly, SCTV's revenue also decreased compared to the same period. Both broadcasters primarily offer football (soccer). SCTV broadcasts La Liga, while VTCcab shows the Champions League, Ligue 1, and Serie A.

FPT Play replaces K+ in broadcasting the EPL in Vietnam. Photo: FPT.

Meanwhile, the television units of network operators such as MyTV (VNPT), TV360 (Viettel), and FPT Play (FPT Telecom) thrive thanks to their existing infrastructure. With their technological advantages, these units offer a diverse range of options including IPTV and OTT apps. They are also major players, willing to spend heavily on broadcasting rights for major sporting events to attract users to their ecosystems.

TV360 broadcasts the Champions League and Bundesliga. FPT holds the FA Cup and recently acquired the Premier League rights until 2031 after K+'s departure. These two entities also possess tens of millions of existing users. The broadcasting rights for major tournaments are a weapon to retain customers with the network provider. At the same time, these sports tournaments become a weapon to attract new users.

The content war

Besides sports, movies and game shows are other key competitive areas for paid content providers in Vietnam. Some companies attract viewers with their own self-produced content.

For example, Galaxy Play owns a library of original theatrical films and TV series. These formats require significant investment. Financial reports show that Galaxy EE, the company that owns the platform, has reported losses for four consecutive years, accumulating to 1,300 billion VND .

VieON benefits from its vast library of game shows. Photo: VieON.

VieON, part of the Dat Viet VAC ecosystem, is a highlight of the domestic OTT market thanks to its library of self-produced game shows that cater to popular tastes, such as Rap Viet, Anh Trai Say Hi, and Ca Si Mat Na. Some of the platform's original films, like Cay Tao No Hoa and Gia Dinh La So Mot, have also gained popularity.

However, the business does not develop in a "monopoly" direction. Many of Dat Viet VAC's game shows are still broadcast on free-to-air television channels and YouTube. A major source of revenue for the business comes from video advertising rather than paid subscriptions from users.

Besides domestic businesses, multinational app companies like Netflix, iQiyi, WeTV, and MangoTV are also trying to penetrate the market with their diverse film and television libraries. Netflix, in particular, positions itself in the upper segment with high subscription prices. In return, users get access to a high-quality film library across various genres. Recently, the platform has also started distributing South Korean films, which are popular among domestic users.

Iqiyi, MangoTV, and WeTV offer Chinese-language films and TV shows. These apps offer free registration, with the first few episodes free to watch. To watch the entire series, users need to purchase a monthly or yearly subscription. However, these apps, originating from China, have repeatedly provided content containing the illegal "nine-dash line," infringing on Vietnam's maritime sovereignty, and have been dealt with by authorities.

YouTube, as the largest video sharing platform, has offered a Premium package in Vietnam for many years, but charges for ad blocking rather than exclusive content.

The problem of pirated movies and pirated football.

Reports by Media Partners Asia and international organizations show that Vietnam remains among the countries with the highest rates of copyright infringement. In 2022, companies in this sector suffered losses of approximately US$348 million , a figure that could rise to US$457 million by 2027.

Before ceasing operations, K+ repeatedly spoke out and filed lawsuits against websites violating copyright in Vietnam. This was one of the businesses that suffered significant revenue losses due to pirated movies and football matches.

K+ had many years of conflict with illegal websites before it was forced to shut down.

Speaking with Tri Thuc - Znews , Mr. Hoang Viet Anh, Chairman of FPT Telecom, stated that copyright infringement is a problem the company faces and continuously seeks to address when providing high-quality content in Vietnam. He also emphasized that to completely prevent it, businesses themselves, along with their internet service partners and relevant authorities, must take action.

Following K+, FPT Play has become the next company to directly confront the problem of copyright infringement. This company has to spend tens of millions of USD each year to obtain the broadcasting rights for the English Premier League in Vietnam.

Source: https://znews.vn/k-dong-cua-thi-truong-truyen-hinh-tra-tien-viet-nam-gio-ra-sao-post1610770.html