ITV

Tag: ViuTV

  • PCCW Media reports lower half year video numbers, higher OTT numbers

    BENGALURU: Hong Kong based telecommunications, media, IT solutions, property development and investment and other businesses group PCCW Limited reported lower numbers for its video operations comprising of NowTV and improved revenue for its ViuTV and its OTT operations for the half year ended 30 June 2017 (H1-17) as compared to the corresponding period of the previous year. Overall, on a consolidated basis, the group’s revenue and operating profits were stable during the current year period as compared to the corresponding year ago period.

    For NowTV, the company reported a stable subscriber base of about 1.3 million and lower average revenue per user (ARPU) of HK$186 in H1-17. The company has mentioned ARPU of HK$ 194 for H1-16 and HK$192 for H2-16. Consequently, revenue in the current quarter declined 3 percent to HK$ 1,350 million from HK$ 1,391 million in the corresponding period of last year (H1-16) and from HK$ 1509 million in the immediate trailing half year period (H2-16).

    NowTV EBIDTA was HK$ 154 million, HK$ 184 million and HK$ 229 million for H1-17, H1-16 and H2-16 respectively.

    For its Free TV business – ViuTV, the company reported revenue in H1-17 of HK$94 million as compared to HK$ 52 million in H1-17, but lower than the HK$ 108 million for H2-17. ViuTV had a higher operating loss (negative EBIDTA) for H1-17 at HK$ 116 million as compared to HK$ 68 million in H1-16 and HK$ 115 million in H2-16.

    OTT services revenue increased 24 percent to HK$ 337 million in H1-17 as compared to HK$ 227 million in H1-16 and HK$ 312 million in H2-16. OTT services reported a higher operating loss (negative EBIDTA) of HK$ 125 million in H1-17 as compared to HK$ 109 million in H1-16 and slightly lower than an operating loss of HK$ 126 million in H2-16.

    Overall, PCCW Limited core revenue decreased by 5 percent to HK$ 17,576 million due to a slowdown in Mobile handset sales at HKT. Excluding Mobile handset sales, core revenue was steady at HK$ 16,549 million. The Solutions and over-the-top (OTT) businesses showed continued growth momentum with their revenues increasing by 6 percent and 24 percent, respectively, for the six months ended June 30, 2017, compared to a year ago

    PCCW Group managing director BG Srinivas said the Group’s strategy was to continue to develop and maintain our leadership in the relevant markets of each of our core businesses of IT solutions, media, and telecommunications, while seeking new growth opportunities.

    He said, “With an excellent track record in large-scale IT projects and a global data centre network alliance, PCCW Solutions will continue to benefit from the needs of enterprises and the public sector to go digital. The significant recurring nature of its business and the expanding demand for digital transformation capabilities should lead to a growing contribution from PCCW Solutions.”

    “Now TV has consolidated its market leadership in the pay TV industry in Hong Kong while ViuTV has broadened our reach into the TV advertising market. Although the environment in the media industry in Hong Kong has been very dynamic in the past year, we expect the competitive behavior to rationalize and lead to improved profitability. The OTT business has extended our geographic scope beyond Hong Kong and we now have a presence in 24 markets. Our goal is to build the leading digital media service in Asia with the best viewing experience and most relevant content,” added Srinivas.

    PCCW raises US$ 110million for video and music streaming

    In a press release, PCCW says that it has raised US$110 million to expand its penetration in its existing markets as well as to expand to other high growth markets its range of video and music streaming services. Hony Capital, Foxconn Ventures and Singapore sovereign fund Temasek have taken an 18 percent share in the enlarged issued share capital of PCCW OTT. PCCW Media will remain as the controlling shareholder of PCCW OTT. PCCW OTT is present in over in 24 markets globally. Its services include video streaming services under the Viu and Vuclip brands along with a music streaming service MOOV.

    The company says that this strategic investment will strengthen PCCW OTT’s ability to enhance its core value proposition of relevant content including distinctive original productions, and to continue to deploy the latest technologies and leverage its patents in video streaming and encoding to offer the best customer experience.

  • FILMART: Quality localised OTT content crucial

    HONG KONG: With the rapid advances in technology, people can tune into their favourite OTT platforms on different kinds of electronic devices anytime and anywhere. OTT refers to over-the-top distribution of multimedia content via the Internet. For online entertainment companies, the challenge is how to revise their strategies to adapt to rapid developments and high demand for such content. At the thematic seminar held yesterday (14 March), “New Opportunities in the Explosive Growth of Online Entertainment” at the Hong Kong International Film and TV Market (FILMART), representatives of four renowned online entertainment companies discussed how to tap into the tremendous OTT platform market by producing and sourcing quality localized content.

    User pays model is key 

    iQIYI senior VP Yang Xianghua pinpointed the fast-growing audience for OTT platforms in the Chinese mainland over the past few years. “It is estimated that within this year or next year, the number of people who watch streaming videos using mobile phone networks will reach half of the country’s population. In view of this, iQIYI is actively working with our partners to produce high-quality full-length online films.” He mentioned that there are two revenue models in place at present; advertisement revenue and user fees. The number of videos that generated more than Rmb1 million in profit for the company surged from 35 in 2015 to 122 in 2016, which points to a huge online market. 

    Conference moderator Variety Asia Editor Patrick Frater raised the question of how to tackle the issue of many online entertainment companies running at a loss. In his response, Yang noted that iQIYI has invested a lot in purchasing and producing content. In order to attract audiences, a significant portion of the content is free in the early stages. However, he predicted that the platform will turn the deficit into profit, as the number of subscribers and page views increases and the pay-per-user model is established. “Young Chinese viewers are relatively affluent, so they are willing to pay for higher-quality content,” he added.

    Localised vision to meet demands 

    PCCW Media Limited assistant VP – Content Management – Digital Media Meg Lee summed up the current trend: “Korean content is king.” Therefore, ViuTV is closely following the Korean trends and actively sourcing quality Korean entertainment video content such as dramas and variety shows, which have attracted a large numbers of fans of Korean trends to follow the channel.

    Regarding producing and sourcing content that caters to the tastes of local audiences, Lee noted, “ViuTV has its own team in each country, as well as an independent team that is in charge of collecting audience data and analysis. We also work with different local companies so as to quickly grasp the demand of the local market.” She added that ViuTV has its own team of translators who translate related content into local languages in a timely fashion. “We can only stay at the forefront by seizing the opportunities from the fast-changing trends.”

    Diversified video content attracts 

    As audience tastes change quickly, companies need to constantly explore new initiatives and adjust their strategies, which results in high investment risks. LINE Company (Thailand) content business director Dan Zonmani stated that LINE TV partners with various brands in co-productions of new online content, which in turns lowers investment risks. LINE TV also offers diversified video content. “Besides local content, we also feature content from Japan and Korea while refining our existing content to cater to the local audience’s taste.” In addition, LINE TV features re-runs of dramas and live broadcasts in a multi-pronged approach to attract audiences.

    He added that in providing content that caters to Thailand’s market, it is essential for the company to understand and respect the local culture while taking risks. “For instance, at the passing of the King of Thailand, we purchased a three-hour film whose content revolves around songs that are written about the King of Thailand. Broadcasting such a lengthy film on LINE TV was a new attempt, and a worthy one.”

    Japanese VoD platforms bloom 

    Among various markets, Japan was one of the last to join the OTT platform revolution, since the country’s traditional entertainment culture remains strong and it is difficult for industry players to break into the Japanese market. Mytheater DD director (animation division and new business development) Nakase Keiko stated that there will be a gradual increase in the number of Japanese audiences who watch videos on OTT platforms on mobile devices, and the market of VOD services platforms is expected to reach US$1.3 billion in value.

    Despite the tremendous market potential, there are also various challenges for companies who wish to enter the market. For instance, while Netflix and Amazon produce original dramas for their VOD platforms in Japan, the companies face competition from traditional TV stations. Nakase believed the companies must differentiate their programmes from traditional TV content. For instance, greater emphasis may be placed on star casting to arouse audience’s interest.

    In conclusion, online entertainment companies must cater to the audience’s tastes, keep a firm grasp on market trends and provide quality, localized content to attract more viewers, in order to tap into this fast-changing and tremendous entertainment services market.