Solutions to increase numbers of k+ subcriber for the vietnam satellite digital television co , ltd = nghiên cứu giải pháp tăng số lượng thuê bao k+ công ty TNHH truyền hình số vệ tinh việt nam

ĐẠI HỌC QUỐC GIA HÀ NỘI
KHOA QUẢN TRỊ VÀ KINH DOANH
--------------------VŨ ANH TUẤN

SOLUTIONS TO INCREASE NUMBERS
OF K+ SUBCRIBER FOR THE VIETNAM
SATELLITE DIGITAL TELEVISION Co., Ltd

NGHIÊN CỨU GIẢI PHÁP TĂNG SỐ LƯỢNG
THUÊ BAO K+ CÔNG TY TNHH TRUYỀN HÌNH SỐ
VỆ TINH VIỆT NAM

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

Hà Nội - 2017


ĐẠI HỌC QUỐC GIA HÀ NỘI
KHOA QUẢN TRỊ VÀ KINH DOANH
--------------------VŨ ANH TUẤN

SOLUTIONS TO INCREASE NUMBERS
OF K+ SUBCRIBER FOR THE VIETNAM
SATELLITE DIGITAL TELEVISION Co., Ltd
NGHIÊN CỨU GIẢI PHÁP TĂNG SỐ LƯỢNG
THUÊ BAO K+ CÔNG TY TNHH TRUYỀN HÌNH SỐ
VỆ TINH VIỆT NAM
Chuyên ngành: Quản trị kinh doanh
Mã số: 60 34 01 02

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: TS. HOÀNG ANH TUẤN

Hà Nội - 2017


DECLARATION
The author confirms that the research outcome in the thesis is the result of
author’s independent work during study and research period and it is not yet
published in other’s research and article.
The other’s research result and documentation (extraction, table, figure,
formula, and other document) used in the thesis are cited properly and the
permission (if required) is given.
The author is responsible in front of the Thesis Assessment Committee,
Hanoi School of Business and Management, and the laws for above-mentioned
declaration.
Date: August 21, 2017


ACKNOWLEDGEMENT
I have gained huge knowledge, skill and insights from my MBA course. The
course raises my capacity of administration and management up to the next level. I
am now very confident in my position of management. I would like to extend my
sincerest thanks and appreciation to all those who have made this Thesis to be
possible.
I woud like to express my great gratitude to my supervisor Hoang Anh
Tuanfor her useful comments, remarks and engagement during my process of doing
this master thesis. Also, I would like to give my sincere thanks tocustomers of
Vietnam Satellite Digital Television Co., Ltd, in my survey, who have willingly
spent their precious time joining the interview.
Sincere thanks are extended to the Faculty of Hanoi School of Buseness and

Management - Vietnam National University for equipping me with huge knowledge
and skills through various interesting and practical subjects. I also would like to
thanks my classmates for their friendship and reciprocal encouragement to make our
class time to be unforgettable time
Lastly, I would like to give my great thanks to my wife, my kids, and my
family who always standby me during the past two years more and encourages me
to keep moving from the beginning of my study.

ii


TABLE OF CONTENTS
TABLE OF CONTENTS ................................................................................................... iii
LIST OF TABLES ............................................................................................................... v
LIST OF FIGURES AND CHARTS ................................................................................ vi
ABBREVIATION TABLE ............................................................................................... vii
INTRODUCTION ............................................................................................................... 1
1. Rationale ................................................................................................................. 1
2. Literature review..................................................................................................... 2
3. Aims of research ..................................................................................................... 5
3.1. Overall ................................................................................................................. 5
3.2. Specific ................................................................................................................ 5
4. Objects of research ................................................................................................. 5
5. Scope of research .................................................................................................... 5
6. Research methodology ........................................................................................... 5
7. Thesis structure ....................................................................................................... 7
CHAPTER I: BASIC THEORY ON PAY-TV INDUSTRY........................................... 8
1.1 Pay-TV services .................................................................................................... 8
1.1.1 Definition of pay-TV service............................................................................. 8
1.1.2 Types of pay-TV services .................................................................................. 8

1.1.3 Role of pay-Tv services in Vietnamese spiritual life ........................................ 9
1.2 Process of building solutions to increase Pay-TV’s subscribers ........................ 10
1.2.1 External environment analysis ........................................................................ 10
1.2.2 Internal environment analysis.......................................................................... 21
1.2.3 SWOT matrix analysis and strategy choice .................................................... 25
CHAPTER 2: REALITY OF BUSINESS ENVIRONMENT AND QUALITY OF
PAY-TV SERVICES AT VIETNAM SATELLITE DIGITAL TELEVISION........... 27
2.1 Introduction on Vietnam Satellite Digital Television ........................................ 27
2.1.1 History of foundation and development .......................................................... 27
2.1.2 Results of business activities and K+ Pay-TV services of the company ........ 32
iii


2.2 Analysis of the reality of the business environment of K + television service
business at Vietnam Satellite Digital Television ...................................................... 33
2.2.1 External environment ...................................................................................... 33
2.2.2 Analysis of industry environment ................................................................... 37
2.2.3 Analysis of internal environment .................................................................... 45
CHAPTER III: SOLUTIONS AND RECOMMENDATIONS ..................................... 56
3.1. Developing orientation for K+ in Pay-TV industry .......................................... 56
3.2. Proposing solutions ........................................................................................... 57
3.2.1. Technical investment and development ......................................................... 59
3.2.2. Content development and copyright of exclusive channels ........................... 61
3.2.3. Marketing strategy .......................................................................................... 66
3.2.4. Human resource .............................................................................................. 66
3.2.5 Approaching customers in the form of B2B, actively developing in the
direction of Blue Ocean ............................................................................................ 68
3.2.6 Supportive solutions ........................................................................................ 68
3.3. Recommendations ............................................................................................. 70
3.3.1. To the government .......................................................................................... 70

3.3.2. To the Ministry of Information and Communication ..................................... 70
3.3.3. To K+’s Board of Directors ............................................................................ 70
CONCLUSIONS, LIMITATIONS AND IMPLICATIONS ......................................... 72
REFERENCES................................................................................................................... 74
APPENDIX
Appendix 1: Survey form
Appendix 2: Data analysis result

iv


LIST OF TABLES
Table 1.1: SWOT Matrix ................................................................................................... 26
Table 2.1: Main activities of the Company ...................................................................... 27
Table 2.2: Results of business activities of the company ................................................ 32
Table 2.3: Some legal documents affecting the development of pay-TV services ........ 34
Table 2.4: Some current economic norms in Vietnam .................................................... 35
Table 2.5: Some current competitors of K+ ..................................................................... 37
Table 2.6 Evaluation on the contents of K+’s channels .................................................. 41
Table 2.7: Evaluation on the rates ..................................................................................... 42
Table 2.8: Evaluation on the quality of signal .................................................................. 43
Table 2.9: Evaluation on the quality of sound and images .............................................. 44
Table 2.10: General evaluation on customer satisfaction ................................................ 44
Table 2.11: Human resources of the company ................................................................. 45
Table 2.12: Average salary of office staff of the company ............................................. 46
Table 2.13: Some rates of service products provided by K+ .......................................... 47
Table 2.14: Advertising activities of the company .......................................................... 48

v

LIST OF FIGURES AND CHARTS
Figure 1.1: Model for evaluating customer satisfaction toward the quality of Pay-TV
services ................................................................................................................................ 20
Chart 2.1: Figures of the number of weekly visitors of online videos of Nielsen ......... 39
Chart 2.2: Advantages of some technologies ................................................................... 50

vi


ABBREVIATION TABLE
Abbreviation

Definition

AVC

Advanced Video Coding

AVG

Audio Visual Global Company

B2B

Business to Business

B2C

Business to Consumer

BHD

Công ty TNHH Bình Hạnh Đan

CJ

CJ Group

DTH

Direct to home

DTT

digital terrestrial television

EPL

English Premier League

GDP

Gross Domestic Product

GOP

Group of picture

GPON

Gigabit-capable Passive Optical Networks

HCATV

Hanoi cable television company

HD

High definition

HEVC

High Efficiency Video Coding

HFC

Hybrid Fiber Coaxial

HTV

Ho Chi Minh City Television

HTVC

Hochiminh cable television company

IPTV

Internet Television

IT

Information technology

MC

Master of ceremonies

OTT

Over the top

R&D

Research and development
vii


RCEF

Regional Comprehensive Economic Partnership

SCTV

Saigon Cable Television

SWOT

Strength - Weakness - Opportunity - Threat

VCTV

Vietnam Cable Television Company

VKFTA

vietnam korea free trade agreement

VNPT

Viet Nam Posts and Telecommunications

VOD

Video on demand

VSTV

Vietnam Sattellite Digital Television Company

VTC

Vietnam Television Corporation

viii


INTRODUCTION
1. Rationale

Accompany with the quickly development of science is the appearance of
many entertainment services that meet the abundant entertainment demands of
people. Along with traditional types of recreational facility such as magazine,
newspaper, journal…and now, television service is considered as the first class one
in the world that indispensable to everyone and every family. Television services
supply the huge amount of information and entertainment that satisfied demand of
all people.
It is very clear that television service plays an important role in modern
society that improves spiritual and emotional life for human worldwide. And,
nowadays, television service is not only considered as entertainment tool but also
specialized one that take part in the social management and supervisory, educational
and cultural popularization and others. Television shows audience at the same time
both truthfully image and lively sound that able to directly impact on audiences all
over the country (even worldwide). Together with free tradition channels of
government, there are nowadays more and more special high tech and quality
services that required paying in use for any options of audiences. Numbers of pay
channels are quickly increased together with a huge number of subscribers. And
therefore, there are a lot of suppliers in this service such as: VTC (Vietnam
Television Corporation), SCTV (Saigon Cable Television), and FPT Television
(FPT group) ...and K+ (VSTV- Vietnam Satellite Digital Television). Sông Thu,
VTV Cab, MyTV (VNPT), Next TV (Viettel)…
Vietnam Satellite Digital Television Company (VSTV) is one of the top
market leading companies in service of paid television in Vietnam. VSTV supply
many options to audiences with high quality image line (HD and full HD channels),
plentiful channels for all age groups, nationwide coverage…In recent years, VSTV
has implemented several strategies and solutions to increase the number of
customers to enhance the competitiveness, such as: discounts on equipments, 50%
discount on monthly subscription fee, monthly data bonus, increase investment in
content, quality of service and network. However, under the pressure of severely
1

competition of other new suppliers, the business results of VSTV are not fit to its
potential. In addition, due to the unhealthy business environment, influence of
economic depression... the VCTV business results still very ominous, despite the
efforts mentioned above. To the end of 2015, the VSTV’s accumulated losses of up
to 1,979 billion.
As one of the leaders of the company, I would like to contribute my small
effort to help our company developing stronger and stronger. That is the reason I
chose this topic to research and find out the solutions to increase the number of
subscribers more stable in the next five years (2016-2021).
Therefore, to find solutions to support the development of VSTV (namely the
development the K + channel), the author selected the topic "Solutions to increase
numbers of K + subscriber for the Vietnam Satellite Digital Television Co.,
Ltd" to complete the master thesis.
2. Literature review
Nowadays, television has become a spiritual food for everyone in the world in
general as well as for Vietnamese in particular; most of the households have at least
one television in their houses for their entertainment demands.
This research will bring viewers all the richest, newest and hottest contents to
satisfy the need of TV viewers of all ages. For the Pay TV sector in general, this
research will create and activate the competition amongst providers, which helps
TV viewers have much more options with many special and attractive contents.
This research will also be a solution to increase the number of K+ subscribers
quickly and stably. Moreover, it helps K+ to become a famous and premium
channel in Vietnam, providing all the news over the world updated continuously,
blockbusters, special series, many original sport shows and some interesting
gameshows…K+ channels will be known not only for football but also for many
others attractive non-sport contents by viewers.
In 2005, Abel Adamu carried out a study of the satisfied of audiences with the

Amharic language night shows on television of Ethiopia (most of the television
shows in Ethiopia are broadcasted with this language):

2


-

Methodology: to complete this study, Adamu Abel carried out a survey
with group of 300 audiences who usually view this show in three locations:
Bahir Dar, Dessie and Gondar.

-

Framework: questionnaires focus on 11 factors that may have strong effect
to the satisfied of audiences. The results shown that, most of audiences
were not completely satisfied with Ethiopian television services at quality
of image and sound, content of shows (channels), are not interested. Thus,
the author suggested some solutions to enhanced the satisfaction of
audiences. However, this study just concerned with night shows only and
the whole sample just focused on audiences who use the free television
service.

-

Conclusion: the solutions in this study are only fit with free television
programs but payable one.

Ngigi Sarah Wanjiru (2013) took a research on service quality and
performance of paid television services of Zuku Co., Ltd of Kenya:

-

Methodology: survey, descriptive statistics, comparision, analysis

-

Framework: building model of the relationship between television service
quality and customer satisfaction; proposing solutions to enhance customer
satisfaction.The author confirmed a closed link between service quality and
performance, in which the reliability and network quality are key factors in
evaluating overall service quality of this company. However, solutions in
this study just focused on improve the customers satisfied with the paid
television services but concerned to the way of development services for
Zuku Company in the future.

-

Conclusion: Not paying much attention to the development of television
services in the coming time of the company in the fierce competition
among pay television companies in Kenya.

In Vietnam, Nguyen, V.N (2015) carried out a study that measure the
customer’s satisfaction with the Dong Nai 1 channel:
-

Methodology: in this study, the author applies two both of qualitative and
quantitative research methods.
3

-

Framework: for the first method (qualitative research) aims to explore the
factors that affect audience’s satisfaction of Dong Nai 1 channel. And then,
for the quantitative method was applied to measure the actual level of
audience’s satisfaction with the Dong Nai 1 channel. The results show that,
quality of television line (image and sound) and the MC (master of
ceremonies) are two key factors that have strong effect on the audience’s
satisfaction.

-

Conclusion: this study just covers a small-free local television channel and
this local program is not high quality television service. Hence, this study
is not suitable with paid one.

Nguyen, B.T (2014) took a research on development strategy of paid
television services of Vietnam national television (VTV) to 2020.
-

Methodology: the author focused on analyzes the performance results of
VTV’s development strategies by some main indicators as: number of
customers (subscribers), market share, profit and customer’s satisfaction.

-

Framwork: the author didanalyzetools of development strategies such as:
financial, equipment, labor resources, research and development activity
(R&D), technical innovation, international cooperation… to find out the
strengths and weaknesses of VTV.

-

Conclusion: the findings and conclusions in this study may be biased due
to the analysis based on secondary data. Moreover, due to research scope
rather wide, the author did not focus on finding solutions to increase
number of subscribers.

Thus, after the review of the literature, the author finds that, there are quite a
lot of researches on the development strategy for paid television services (also study
on customer satisfaction on TV service). Most researches usually base on wide
range (the entire field of free TV or pay TV), so the solutions just are generally
oriented without specific solutions. At the same time, the lack of research on the
increase of the number of subscribers to pay TV services as the foundation for the
development of the business. In addition, no studies on the improvement of K +

4


subscribers. Therefore, this study will be valuable both in terms of theory and
practical.
3. Aims of research
3.1. Overall
Find out solutions and make some changes to increase K+ subscribers in the
next five years.
3.2. Specific
-

First: Building a theoretical framework about the paid TV services and
process of building solution to increases the number of customers who use

paid TV services

-

Second: Propose solutions to increase number of K + subscribers

-

Third: Recommendation to support for solutions be high efficiency in
practice

4. Objects of research
The objects of research are K+ subscribers, non-K+ subscribers, leaders and
staffs of K+
5. Scope of research
Time of research is the time to do this thesis: 2016
This thesis will focus to analysis on pay-TV market, competitors, business
environment
This thesis will user survey result to do analysis
This thesis will be carried out in Hanoi area
This thesis will focus on the main solution: K+ contents development, and
some other solution related to HR, technical, marketing and commercial.
6. Research methodology
The study reviews theoretical framework and relevant researches of the
research topic.
Data and time:
+ Secondary data: is collected in the period of 2012-2016 of K+’s paid
television service in Hanoi market that includes: Revenue from K+, market

5

share, number of K+ channels, subscribers, actual strategies that K+
implemented in the period 2012-2016 to develop this service
+ Primary data: is collected through sample survey with customers who use
the K+’s paid television service at least 6 months ago, to now (time of
survey-interview). This will be implemented in Jan and Feb /2017
The research questions will be addressed by the both qualitative and
quantitative method. Based on theoretical framework, key indicators (and key
measurements) will be detail described. In addition, statistical and descriptive
analysis methods are used.
+ Comparative analyze: this method will be used mainly in analyze the
development of K+’s paid television service in period 2012-2016, andIt will
have used in comparison with other suppliers in the same period.
+ Quantitative method: This method will be used in measure the satisfaction
of customers who use the K+’s paid television service (data from survey),
The scale is based research models of Parasuaraman et al (reliability,
responsiveness, assurance, empathy, tangibles. The authors Hair & CTG
(1988) say that to ensure the accuracy of research results, the minimum
samples must be from 100 to 150 samples. Author Roger (2006) thinks that
the minimum samples for the research is from 200 to 250 samples. Some
others say that for multivariate regression analysis: minimum necessary
samples must be calculated by the formula of 50 + 8 m (m is independent
variable) (Tabachnick and Fidell, 1996). There are five independent variables
in the thesis and minimum necessary samples are 95. Because the data
collection process is simple, the author delivers 300 questionnaires. All
observed variables in the factors use 5- level Likert scale with bellow
choices:
o Strongly dissatisfy
o Dissatisfy

o Normal
o Satisfy
o Strongly satisfy
6


7. Thesis structure
The thesis structure included three main chapters:
CHAPTER 1. BASIC THEORY ON PAY-TV INDUSTRY
CHAPTER 2: REALITY OF BUSINESS ENVIRONMENT AND QUALITY
OF PAY-TV SERVICES AT VIETNAM SATELLITE TELEVISION
CHAPTER 3: SOLUTIONS AND RECOMMENDATIONS

7


CHAPTER 1: BASIC THEORY ON PAY-TV INDUSTRY
1.1 Pay-TV services
1.1.1 Definition of pay-TV service
There are several definitions of pay-TV service as follows:
Pay-TV is a form of television watching with fees, as a monthly subscription.
Television is capable of transmitting lots ofchannels to households, social sectors,
and providing many other value-added services (Le Doan Huy, 2011).
Pay-TV is a television service where viewers pay service providers a fee to
watch the channels of their choice. Pay-TV enables viewers to be more proactive in
choosing the programs to watch to their preferences. Pay-TV has several forms such
as cable television, digital terrestrial television (DTT), satellite television (DTH),
Internet TV (Encyclopedia, 2016).
Pay-TV service is an activity that provides the transmission and distribution
of information content in the form of pay-TV and value-added services on the

technical infrastructure that provides pay-TV services to paid television subscribers
under service contracts or equivalent compulsory agreements; in which,pay-TV
programs are domestic and foreign programs which are offered to pay-TV
subscribers (Nguyen Hoang Phuc, 2013).
Targetedcustomers of Pay-TV:
- Final consumers
- Customers who redistribute products.
- Customers whouse value-added services on Pay-TV infrastructure
1.1.2 Types of pay-TV services
+ Basic services
Basic services are traditional and modern pay-TV services which are
currently available in the world including the following common services:
- Multiprogram Multipiont Distribution Sytem
- Community access television
- Digital terrestrial television
- DTH satellite television
+ New Generation Transmission Service: include the following services
8


- On-demand television service
- High definition digital television service
- Internet television (IPTV)
- Mobile television (MobileTV)
+ Value added services: now includes:
- Advertising and co-production services with shared revenue
- Broadband internet services on television network infrastructure.
- Gaming service on cable network infrastructure.
- On-demand karaoke services
- Television shoping services

- Voting service for programs or candidates
1.1.3 Role of pay-Tv services in Vietnamese spiritual life
Pay-TV is a form of television watching with fees, as a monthly subscription.
Consequently, television is capable of transmitting lots of channels to households,
social sectors, and providing many other value-added services.
Pay-TV has become an increasingly developing trend with modern technology
since it not only plays the role in transmitting radio and television channels, but also
serves the political tasks of the Party and the State and meets the demand for diverse
information and entertainment of people.
Pay-TV is received through broadcast stations and is transmitted throughout
the country across all territories, serving viewers with the highest quality that
crosses the geographic distance, especially in remote areas. In addition, since payTV uses modern technology, this type of service offers the best sound and picture
quality, eliminates unhealthy channels, and suits the developing trend of today’s
world.
Pay-TV has a lot of high-quality television channels with superior technology
that brings customers high quality television, high-quality image and sound,
especially the quality of the contentsof domestic and foreign channels.On the one
hand, itmaintainsthe cultural character in the integrating stage. On the other hand,
through foreign channels we canacquire the cultural quintessence of the world.

9


Pay-TV broadcasts some exclusive channels which free-TV does not offer. In
terms of quality, the contents aremuch better than free TV.
Pay-TV is day by day familiar with Vietnamese and number of subcribers is
increasing, count to 2014 number of subscribers are almost reach to 8 million:

Source: Ministry of information and communication
More over, in the modern age, the demand of people is increasing; freeTVwith outdated technology will not be able to meet the demand for diversified

entertainment information of people. Therefore,the emergence of pay-TV will play
a role in meeting the need to access and enjoy information and culture in the world
in the best way for all subjects and all economic components in society...
1.2 Process of building solutions to increase Pay-TV’s subscribers
1.2.1 External environment analysis
1.2.1.1. Macro environment
Laws and State policies
The strategic solutions to increase the service revenue of Pay-TVenterprises
are strongly influenced by themovements in the political environment. This
environment includes laws, government agencies, and pressure groups that
influence and limit the various organizations and individuals in society. Enterprises
must

carefully

analyze

the

new

related
10

philosophies

and

policies

of


Stateadministration. Antitrust laws and tax laws are policies that can affect the
performance and profitability of Pay-TV services.
Moreover, on a globalscope, service companies also face a range of political
and legal issues such as trade policies and national protection barriers.
In addition, special services such as television in general and Pay-TVare also
paid attention by our government to protect consumer rights and security.
Therefore, strict regulations are also a significant impact on the strategies and
solutions to increase sales of Pay-TV service providers in Vietnam.
Economic factors
Businesses in general and Pay-TVenterprises must pay special attention to
the economic factors when proposing strategies and solutions to increase sales.
Since the demand for using television services of the people will be directly affected
by the income levels or consumption amount of people. In addition, this income is
affected by factors in the economy such as inflation, interest rates, exchange rates,
etc.
The high inflation rate will cause the real incomes of people to decrease due
to the CPI increase. Since then, people will tighten their spending and reduce their
demand for using services.
Interest rates: When the bank interest rates increase, people will accumulate
to deposit money into banks to enjoy interests instead of spending. Base on result,
the demand for using Pay-TV services will also decrease.
Thus, when building strategies and solutions to increase the number of PayTV subscribers, enterprises need to analyze and evaluate the economic factors to
propose appropriate solutions.
Social factors
The society in which people grew up has shaped their basic beliefs, values,
and norms. Man absorbs, almost unconsciously, a worldview that determines their
relationship with oneself, with others, with nature, and with the universe. Social

factors include norms and values that are accepted and respected by a society.
Social factors have a very slow impact on businesses in general and Pay-

11


TVenterprises. But if enterprises do not analyze and evaluate these factors, they will
find it difficult to realize solutions and strategies suitable to them.
Social factors such as people’s personalities in each region, ways of life,
beliefs, customs, habits, working habits, cultural characteristics of the workplace are
socio-cultural factors that must be respected and noticedso that managers can
buildthe solutions to increase the revenue fromPay-TV services.
Natural factors
Natural factors such as climate, rivers, etc. are factors that people can not
intervene or changeto a positive direction to benefit their business. These factors
have a common affect on all companies and enterprises. It can affect the working
ability of people. Phenomena such as sunlight, rain, storms, etc. can cause work
delays. Companiescan not avoid the effects of these natural factors.
Consequently, those who work to build up solutions to boost the sales of
Pay-TV services should be sensitive to the threats as well as opportunities
associated with these natural environment factors.
Technological factors
There are very few sectors that are not affected by technology factors.
Especially in the field of Pay-TV business, providers that hold high technology will
dominate. Therefore, solution planners in these businesses need to understand the
industry's current technological environment and understand how new technologies
can serve human needs. They need to work closely with the research
anddevelopmentstaff to encourage them to move towards market-oriented research.
They must be wary of the unwanted consequences of any innovation that could
cause damage to the users and a loss of credibility and the resistance of consumers.

However, the technology environment is also a big challenge for pay-service
companiessince technology is constantly developing.It is not easy for companies to
follow this development due to many reasons such as finance, infrastructure, staff
levels, etc. Therefore, the technological environment factors are both an opportunity
and a challenge for the Pay-TV service providers in building the solutions to
increase sales.
Population factors
12


Vietnam is a densely-populated developing country that has been
transitioning from the rigidities of a centrally-planned economy since 1986. It is a
significant market, with 95.4 million people; 24,9 million households and 9,13
million pay TV subscribers.Viewers are young with an average of 28. TV is the
dominant media with a daily reach among adults approaching 90%.
1.2.1.2. Micro environment
Current competitors
Current competitors are businesses that are currently providing Pay-TV
services. These companies compete in prices, product quality, technology, and
levels of prestige and trust in the market.
The large number of competitors is a driving force for businesses to improve
and enhance their service quality. However, it also reduces the market share of
service providers. Hence, the pressure from the current competitors requires the
Pay-TVservice companies to plan strategies and solutions to increase suitable their
sales volume to attract customers and strengthen theirbusiness efficiency. Let’s see
the Pay TV market in 2016:

Source: Media partner 2016 and K+
There are three kind of competitors: Cable, DTH and IPTV:
-

Cable Pay-TV:
13


o Focus in Hanoi and the North: VTVCab

Offers

Strengths

Weaknesss

Analog offer:
- Normal package: 70 channels, price: 110 KVND/month
- HD package: 240 channels (70 HD channels), price:
160 KVND/month
- K+ package: 4 channels, price 125 KVND/month
Digital offer:
- HD package: 200 channels (60 HD channels), price: 50
KVND/month
- NHK package: 1 channels, price: 800 KVND/month
- K+ package: 4 channels, price 125 KVND/month
More than 60 HD channels and Vietnam local channels
Co-distribution with K+: K+1, K+NS, K+PC, K+PM
Coverage of main northern urban areas of the country;
target: 21 cities
Cooperation EVN Telecom and Pinet (Pamanet) for high
speed internet (from 09/2011)
Compulsory to subscribe to analog TV to get SD or HD

packages (110 KVND/month)
High HD equipment price
No personal video recorder
Digital quality not stable

o Focus in the South and Mekong delta: SCTV

Offers

Strengths

Weaknesss

Analog offer: 61 channels, price 88 KVND/month
Digital offer:
- SD package: 125 channels, price: 99 KVND/month
- HD175 channels (50 HD channels), price: 110
KVND/month
Largest cable TV network
Many southern local channels
Cheapest equipment price
Value added services: personal video recorder,
multiroom, karaoke on demand, SMS
Internet and IPTV: SCTVnet
New football rights (Liga, Serie A) and tennis rights
(Master 1000)
Spreading in the northern area
Compulsory to subscribe to analog TV to get SD or HD
packages (109 KVND/mo)
Few channels for children: only 2

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o Forcus in Ho Chi Minh City: HCMC

Offers

Strengths

Weaknesss

-

Analog offer:
- Normal package: 81 channels, price 99 KVND/month
Digital offer:
- Analog+HDTV package: more than 81 channels, price:
120 KVND/month
- Analog+HDTV+Internet package:more than 81
channels, price: 250 KVND/month
Pay-TV affilialte of HCMc TV (HTV), the main
broadcasting body for HCMc
Value added services: cooperation with FPT for service
of VOD for Vietnamese movies Mobile TV, game
online, interactive online TV guide, time shift (replay),
video conference
Good value-for-money esp.SD free subscription fees
11 HD channels
9SD + 1HD thematic home-edited channels (FBNC:

news, HTVC for women, HTVC sport, …).
Compulsory to subscribe to analog TV to get HD
package (99 KVND/mo)
No PVR
Not many movie channels: 6 vs. 9 on K+

DTH Pay-TV
o VSTV (K+)
o VTC
Offers

Strengths

Weaknesss

- SD Package (digital): 88 SD channels, price 60
KVND/month
- HD Package (digital): 88 SD + 12 HD channels, price
100 KVND/month
VTC is part of Ministry of Communication, as a
subsidiary of the VN Post and Telecommunications
Group (VNPT)
Good brand awareness in rural areas
Value added services: VTC stores: shopping online
Good value-for-money for HD channels
Cooperation with local TVs de develop DVB-T
HD channels are not all HD native
No PVR
Bad quality of signal
Is losing momentum

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