News

Telecom & Internet

Staff Reporter

, Singapore

Published:

9 years ago

Will Starhub's Pay TV business be able to hold on as Netflix gains popularity?

Its subscribers saw a 1.5% drop already.

Aside from the looming threat coming from a possible fourth telco, Starhub also has to keep its eyes on its Pay TV business.

According to a report by DBS, its Pay TV business, which comprises 18% of its service revenue, may face threats as Netflix gains popularity.

The report pointed out that when Netflix entered the Singapore market in early 2016, StarHub saw its pay TV subscribers drop 1.5% QoQ.

Aside from the Netflix threat, StarHub ending its 'TV lite' promotion also contributed to the subscriber loss.

More so, Netflix subscription of $11 per month is 60% cheaper than Starhub's entry level of $27.

However, not all is lost for Starhub, as Netflix does not offer comprehensive local language content and sports content, which is a key driver in the Singapore pay TV market.

"As a result, we may see only a marginal impact (2-3%) on Pay TV revenue going forward," DBS claimed.

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