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Hutchison Global Communications (HGC) announced in July 2005 that it will also offer pay TV services by distributing Galaxy Satellite Broadcasting Limited’s satellite pay TV service, SuperSUN, over its broadband network. HGC has now become the territory’s second triple play operator and will compete head-to-head with incumbent PCCW’s “Now” broadband TV service. HGC will benefit from its critical mass of customers, superior broadband access, and a different content management model.
As of July 2005, HGC’s residential offerings were limited to broadband and voice services only. For broadband access and pay TV services, HGC will charge nearly US$10 more than PCCW’s broadband and NOW Broadband TV service bundle. To justify the cost, HGC is emphasizing the viewing experience. HGC will deploy SuperSUN ‘s pay TV services via its fiber optic network, which is more extensive than what Galaxy originally had. HGC’s network covers more than 4000 residential buildings and has passed 1.2 million homes. The technical superiority implies that HGC is already able to support richer content to customers, who up to now only have one triple play supplier.
Another differentiator is HGC’s (and thus SuperSUN’s) content management model. Content is from TVB, a premium local broadcaster, targets different customer groups from PCCW’s. To elaborate, Galaxy is a wholly owned subsidiary of TVB, a well entrenched broadcaster and content provider. As such, this means that HGC does not need to market new content because such content is already familiar in the market. HGC also does not need to incur exorbitant expenses to secure exclusive content nor does it need to find those elusive exclusive relationships with premium or established content providers. As such, HGC’s differentiators are in its delivery standard that improves viewing experience and a different approach of content management. These factors are sufficient to allow HGC a sizable market position.
To learn about PCCW’s value proposition and the Triple Play landscape in Hong Kong, purchase the latest Asia-Pacific Perspective in the online store.
Also available is the Pyramid Research report Demystifying Triple Play.
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