Pay TV and OTT in Vietnam in 2024: Big Steps

Director of the Department of Broadcasting and Electronic Information, Mr. Le Quang Tu Do: The television industry in Vietnam has had favorable developments in the context of an improving economy .

Although the number of subscribers of both types of services grew strongly, the revenue of the TV industry only increased slightly, reaching only 10,305 billion VND, an increase of about 4% compared to the previous year. In particular, revenue from OTT services has grown significantly, reaching nearly 1,700 billion VND, an increase of 7% compared to 2023. This is a positive signal for the development of the Internet TV service industry, although the growth rate is still not equal to the explosion in the number of subscribers.

In a workshop held in October 2024, the Director of the Department of Broadcasting and Electronic Information, Mr. Le Quang Tu Do, commented that the television industry in Vietnam has had favorable developments in the context of an improving economy. However, he also pointed out that the field of broadcasting still faces many challenges. One of the major problems today is the price of services, copyright in cyberspace, as well as the situation of advertising gambling and betting in sports tournaments, especially football.

Copyright issues continue to be one of the biggest challenges for the television industry in Vietnam. Director Le Quang Tu Do shared that one of the current difficulties is copyright infringement on the internet, along with the incomplete implementation of music copyright fees. This not only affects service providers but also reduces the quality of television content.

In addition, businesses also face a lack of uniformity in regulations on royalties and infrastructure costs. Although revenue is growing, these factors are putting significant pressure on the profits of businesses in the industry.

In this situation, PTTH service providers are advised to promote the application of technology to reduce costs and improve service quality. According to Mr. Bui Huy Cuong, Deputy Head of Service Management Department, Department of PTTH and E-Information, businesses need to grasp the psychology of users, create product packages suitable for each subscriber group, especially young people - a group of users who have the habit of using OTT platforms.

The development of OTT services is gradually changing the habits of television viewers in Vietnam. Users are increasingly shifting from traditional television channels to OTT platforms, where they can be more flexible in choosing content according to their needs and time. Therefore, television service providers need to develop diverse and creative content, and apply technology to enhance the attractiveness of the service, thereby increasing revenue.

According to the forecast of the Department of Broadcasting and Electronic Information, although the number of subscribers and revenue of the pay TV market will continue to grow in 2024, the growth rate may slow down compared to 2023. OTT services are expected to continue to grow more strongly than traditional TV services. However, the television industry will still face unfavorable factors, especially increasingly fierce competition from global online platforms.

To maintain this momentum, businesses need to be more proactive in changing their business strategies, especially in digital transformation and technological innovation. At the same time, state management agencies are also committed to accompanying businesses and improving the legal framework to create a more favorable environment for the development of the industry.

The Department of Radio, Television and Electronic Information said it will continue to work with businesses to resolve issues related to copyright protection and copyright fees. In addition, the agency will also promote digital transformation in service provision management, helping businesses receive online business reports and promptly warn of violations.

The Vietnam Television Association is also actively addressing issues related to copyright infringement, as well as seeking solutions to improve service and content quality. Mr. Le Chi Cong, Vice President of the Vietnam Television Association, said that in the context of an increasingly volatile market, businesses need to quickly adapt to changing viewer habits to maintain growth momentum in the future.

The pay TV and OTT industry in Vietnam is witnessing positive signs of growth, but also faces many challenges in copyright protection, cost reduction and content development in line with new consumer trends. Businesses need to continue to apply technology to improve service quality and create more attractive products for users. At the same time, the companionship and support from management agencies and the TV Association are important factors helping the television industry develop sustainably in the coming time./.

Source: https://mic.gov.vn/truyen-hinh-tra-tien-va-ott-tai-viet-nam-nam-2024-nhung-buoc-tien-lon-197241225172537225.htm