Breyton
Well-Known Member
Re: The Barclays Premiership / Champions League Thread
First the CL, now the EPL.... competition good for the consumer my ASS....
SingTel, StarHub battle for EPL rights
Bidding war looms, with customers likely to end up paying more
by Terence Voon
SINGAPORE'S two pay-TV giants have submitted bids to broadcast live English Premier League (EPL) matches from next year.
This sets the stage for a bidding war that could ultimately see sports fans paying more to watch the likes of Manchester United, Liverpool and Chelsea.
Both SingTel and StarHub want the right to screen the football games for three years from the 2010-2011 season.
The deadline for submitting bids was yesterday and SingTel was first to confirm its interest, releasing a two-paragraph statement at 6pm.
'The bid is consistent with the company's strategy to bring attractive content to SingTel customers for their entertainment,' it said.
Within the hour, StarHub issued a similar statement, noting that it has screened live EPL matches here since 1997.
There had been speculation recently that SingTel and StarHub might launch a joint bid for EPL broadcast rights, but The Straits Times understands that yesterday's moves were competitive.
The Football Association Premier League (FAPL) owns the TV rights to all EPL matches and although it does accept joint bids, there are caveats involved. It is understood that these caveats, which cannot be disclosed, made it too complex for the two operators to submit a joint bid.
Attempts to reach the FAPL last night were unsuccessful.
The rights to EPL broadcasts in football-mad Singapore are considered the jewel in the pay-TV crown, and landing them would be a major coup.
But those rights do not come cheap.
StarHub is believed to have paid $250 million in 2007 for a three-year contract. It has an estimated 250,000 subscribers to its sports group package - of which EPL games are a big part.
SingTel has eyed the EPL since it launched its mio TV service two years ago.
It was unsuccessful in 2007, but won the right to show European Champions League matches from this year till 2012.
Given the burgeoning popularity of English soccer here, analysts expect the winning bid this time to be well over what StarHub paid previously.
Investment research house CIMB warned last year that a bidding war could see the winner shelling out about $400 million, resulting in subscription charges for viewers spiralling upwards.
Subscribers to StarHub's sports group package currently pay $25 a month, up from just $8 in 2004.
When the company raised its fees in 2007, the outcry from viewers drew the attention of the Media Development Authority (MDA), which commissioned a study last year to look into competition in the pay-TV market.
Last night, MDA Head (Competition and Market Access) Eileen Ang said: 'The MDA will be closely monitoring the situation, taking into account international best practices. We will do what is deemed necessary in the best interests of the public.'
Analysts cautioned, however, that the battle for EPL rights would be bruising, and consumers should be prepared to pay more for their football fix.
Westcomb Securities' head of research Goh Mou Lih said: 'It will be a fierce fight, because SingTel wants to boost its mio TV subscription, and StarHub wants to hit back for losing the Champions League.
'The higher costs will definitely be passed on to consumers.'
If SingTel wins the bidding war, fans who are now customers of StarHub only will have to subscribe to mio TV and get an additional set-top box.
CIMB-GK regional economist Song Seng Wun said fans will then have to decide if it is worth their while to fork out more for EPL matches.
'The whole idea of competition is to benefit the consumer, but sadly, it doesn't seem to be the case so far,' he said.
The Straits Times Interactive
First the CL, now the EPL.... competition good for the consumer my ASS....
SingTel, StarHub battle for EPL rights
Bidding war looms, with customers likely to end up paying more
by Terence Voon
SINGAPORE'S two pay-TV giants have submitted bids to broadcast live English Premier League (EPL) matches from next year.
This sets the stage for a bidding war that could ultimately see sports fans paying more to watch the likes of Manchester United, Liverpool and Chelsea.
Both SingTel and StarHub want the right to screen the football games for three years from the 2010-2011 season.
The deadline for submitting bids was yesterday and SingTel was first to confirm its interest, releasing a two-paragraph statement at 6pm.
'The bid is consistent with the company's strategy to bring attractive content to SingTel customers for their entertainment,' it said.
Within the hour, StarHub issued a similar statement, noting that it has screened live EPL matches here since 1997.
There had been speculation recently that SingTel and StarHub might launch a joint bid for EPL broadcast rights, but The Straits Times understands that yesterday's moves were competitive.
The Football Association Premier League (FAPL) owns the TV rights to all EPL matches and although it does accept joint bids, there are caveats involved. It is understood that these caveats, which cannot be disclosed, made it too complex for the two operators to submit a joint bid.
Attempts to reach the FAPL last night were unsuccessful.
The rights to EPL broadcasts in football-mad Singapore are considered the jewel in the pay-TV crown, and landing them would be a major coup.
But those rights do not come cheap.
StarHub is believed to have paid $250 million in 2007 for a three-year contract. It has an estimated 250,000 subscribers to its sports group package - of which EPL games are a big part.
SingTel has eyed the EPL since it launched its mio TV service two years ago.
It was unsuccessful in 2007, but won the right to show European Champions League matches from this year till 2012.
Given the burgeoning popularity of English soccer here, analysts expect the winning bid this time to be well over what StarHub paid previously.
Investment research house CIMB warned last year that a bidding war could see the winner shelling out about $400 million, resulting in subscription charges for viewers spiralling upwards.
Subscribers to StarHub's sports group package currently pay $25 a month, up from just $8 in 2004.
When the company raised its fees in 2007, the outcry from viewers drew the attention of the Media Development Authority (MDA), which commissioned a study last year to look into competition in the pay-TV market.
Last night, MDA Head (Competition and Market Access) Eileen Ang said: 'The MDA will be closely monitoring the situation, taking into account international best practices. We will do what is deemed necessary in the best interests of the public.'
Analysts cautioned, however, that the battle for EPL rights would be bruising, and consumers should be prepared to pay more for their football fix.
Westcomb Securities' head of research Goh Mou Lih said: 'It will be a fierce fight, because SingTel wants to boost its mio TV subscription, and StarHub wants to hit back for losing the Champions League.
'The higher costs will definitely be passed on to consumers.'
If SingTel wins the bidding war, fans who are now customers of StarHub only will have to subscribe to mio TV and get an additional set-top box.
CIMB-GK regional economist Song Seng Wun said fans will then have to decide if it is worth their while to fork out more for EPL matches.
'The whole idea of competition is to benefit the consumer, but sadly, it doesn't seem to be the case so far,' he said.
The Straits Times Interactive
