The relief was clear on the face of Mr Nguyen Truong Minh, an English Premier League football fan, after Vietnam Cable Television (VCTV), a subsidiary of Vietnam Television (VTV), finally confirmed it had struck a deal to broadcast Saturday matches of the Premier League during the 2010-2011 season. Like many VCTV subscribers in Vietnam, Mr Minh was pleased to hear the news because for many years he’s enjoyed a feast of weekend football. “At least I can watch the games on Saturday nights, which is better than nothing,” he said. 

Last season, subscribers to VCTV or the Vietnam Multi-Media Corporation (VTC) could enjoy live football matches, especially from the popular Premier League, on Saturday and Sunday nights. The situation, however, has changed. This season, VCTV customers can only see Premier League matches on Saturday nights. VTC customers were not so lucky, as they have to upgrade their digital receivers into costly High Definition Television (HDTV) receivers to see the Saturday games. Only Kplus subscribers can enjoy matches on both nights.

Analysts, consequently, are concerned that a monopoly may be emerging. Compared to the previous average of VND70,000 ($3.9) per month, the new Kplus subscription schedule has sent shockwaves through football lovers. In order to watch matches on Saturday and Sunday nights, they must now pay a subscription fee of VND3 million ($167) per year and buy a Kplus receiver for around VND1.5 million ($83). This is too much of an outlay for most Vietnamese people. 

But such is normal in business, as competition between broadcasters over TV rights has become a regular feature of the business environment as Vietnam gradually integrates into the world. It’s a bit of a surprise, though, that Vietnam Satellite Digital Television (VSTV), a newly established broadcaster that owns the Kplus service, got the upper hand in the battle with major broadcasters such as VCTV and VTC. It’s believed that Kplus paid $10 million to MP& Silva, a Singapore-based media company that holds the distribution rights for broadcasting Premier League games in Vietnam, to win the bidding war. MP& Silva also sold the rights to broadcast Saturday matches to Saigontourist Cable Television (SCTV) and VCTV, for $1.7 million and $1.8 million, respectively. VTC, meanwhile only secured the rights to broadcast Saturday matches on HDTV, for $300,000.

Understandably, Kplus was quick to dismiss suggestions of a monopoly being formed. According to Mr Cao Van Liet, General Director of VSTV, it operates as a pay TV provider and must earn a profit. “In order to survive and develop further, VSTV, like other enterprises, has to invest in areas such as infrastructure, technology, human resource and products,” he told local media. He added that Kplus’s customers can watch its programs without being disturbed by advertisements, as Kplus will not broadcast any advertising.

The battle for the TV rights closed with a victory for Kplus, and it seems that VTC is the most disadvantaged of the three losing bidders. Previously holding a competitive edge in sporting programs, it can now only broadcast Saturday matches on HDTV instead of on the cheaper cable television option as in the last two seasons. Consequently, their customers are unsettled by the higher subscription fees. VTC is expected to ask for around VND4.7 million ($261), including VND3.5 million ($194) for an HDTV receiver and a VND1.2 million ($67) annual subscription fee.  

Mr Le Van Khuong, Deputy General Director of VTC, said in an interview that the company is reluctant to broadcast on HDTV as it is costly. He also believes that the battle has driven prices to a much higher level than needed, and that foreign brokers benefit the most. “Why did we have to fight tooth and nail over the issue, while we all ended up getting a more expensive deal?,” he was quoted as asking. “The biggest beneficiary here is none other than the foreign brokers.” 

What seems strange is the way Kplus won the bidding war, since three out of the four bidders are VTV subsidiaries. While VSTV is a joint venture between VCTV and France’s Canal +, SCTV is also related to VTV as it is a joint venture between the travel chain Saigon Tourist Holding Company and VTV, covering Ho Chi Minh City. One possibility is that VTC had to fight an alliance of the three VTV subsidiaries, and it’s also plausible that an unspoken agreement was reached between the three to ensure that VTC did not win the bidding war.

Such conspiracy theories may be right or wrong, but when VTC was established it seemed that VTV had finally met some stiff competition. For several years now the two broadcasters have competed fiercely for the TV rights of famous events such as Miss World and international football leagues. 

Whatever the goings-on behind the scenes, consumers are angry and are asking questions. On social networks and forums, thousands of football fans have launched campaigns to boycott Kplus. Some VTC customers asked by VET said they would consider switching TV services if nothing changed in the time to come. As for VCTV customers, they will also have to make different arrangements if they want to watch Sunday matches. “I think I’ll go out with some friends on Sunday nights and watch the game at a coffee shop or bia hoi,” said Mr Minh.

In the latest move, the Ministry of Information and Communications (MoIC) has decided to intervene. According to Depuy Minister Do Quy Doan, Kplus must temporarily share the broadcasting rights for the Sunday games with those that have the same broadcasting infrastructure. VCTV, VTC and SCTV will have to negotiate with Kplus over the fee for this arrangement.

The Minstry is also working on procedure to establish a Pay Television Association. When established, it will benefit broadcasters and viewers alike when TV rights for popular international events are up for grabs.