Kenny Lim
Oct 12, 2009

SingTel slashes BPL costs to lure StarHub viewers

SINGAPORE - SingTel has unveiled an aggressive bid to lure pay-TV subscribers from rival StarHub by cutting the cost of watching Barclays Premier League (BPL) matches by almost 60 per cent.

SingTel slashes BPL costs to lure StarHub viewers
SingTel, which recently won the exclusive broadcast rights to the BPL, plus other sports content from ESPN, will charge local consumers a flat S$23 (US$17) for its BPL package - which includes coverage for all 380 matches and a set-top box without the need for a basic plan.

StarHub’s package to watch BPL games has cost S$53 (US$38),  which comprised S$24 for a basic package, another S$25 for its sports package and S$4 for rental of a set-top box.

SingTel is using the BPL package to attract subscribers to its Mio TV platform.

In a statement, SingTel said its pricing philosophy was based on customers paying for programmes that they want to watch and promises “access to true video-on-demand programming”, “flexibility” and “choice which they were not able to enjoy as the pay TV market was dominated by a single player until SingTel entered the market in July 2007”.

Allen Lew, SingTel's CEO, said: “For years, football lovers have been forced to take up a basic package before they are able to watch the BPL matches on cable TV for an additional fee. We empathise with their lack of choice and unnecessary expenses all these years.”

According to one industry source, SingTel’s sports package is not so much of a 60 per cent discount, but just matches what StarHub was previously offering without including the basic subscription. He argued StarHub still had plenty to play for. “Nobody really just watches football when they sign up for pay-TV,” he argued. “StarHub still has a great variety of content and channels, particularly with Chinese entertainment, which would remain a huge draw for the majority of the local population here.”

He added that SingTel is expected to be making a loss on its Mio TV platform each year based on what it paid for the broadcast rights for three years. “Even if it does sign up to 200,000 subscribers, if you do your math on that amount of subscribers, they could be losing up to US$40 million a year. It’s still a cheap price for SingTel though, for it to get into the content business.”

Another source said that SingTel has now created a “strong proposition” for local football fans to sign up with Mio TV.

“From a consumer point-of-view, the package has allayed some of the fears and anti-SingTel sentiment that local football fans might be feeling,” he said. “The CEO has clearly communicated what he had promised so the consumer should now feel less alarmed about getting ripped off.”


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