Punters tune to broadcasting

With the deregulation of television broadcasting opening an opportunity for private invesment, the field is heating up, with more companies willing to face the high risks involved for an early stake in a potentially lucrative sector.

In a few short years, the nation’s television viewers have seen choices grow from a few national channels operated by Viet Nam Television (VTV), plus a handful of provincial channels, to nearly 100 channels nationwide, many privately operated.

In addition to the promise of growing advertising revenues, investors are also attracted to the potentially limited number of broadcast licences available, with the licences themselves likely to become increasingly valuable assets.

Among the companies to enter the broadcasting industry are YANTVJSC, FPT Media, Ocean Group, BHD, Cat Tien Sa and Lasta, and they have created such channels as SNTV, Shopping TV, SCTV, InfoTV, O2, VITTV and Today TV YANTV, all generating original programming. A number of channels have also come and gone due to a failure to attract viewers and advertising revenue in this high-stakes. Others, seeking a quick profit, try to lure advertisers with hastily produced films or game shows.

The industry is driven by sales of 30-second advertising spots. The VTV, for instance, agreed with BDH Co Ltd to buy rights to broadcast the television series The Ugly Girl (the Vietnamese remake of the popular overseas series Ugly Betty) for VND300 million (US$15,384), plus the right to sell 30-second advertising spots during the series daily timeslot of 9-0pm daily on VTV3.

With BDH facing production costs for the series of VND100 million ($5,128) per episode, BDH would be able to recoup VND200 million ($10,256) per episode selling the advertising time. VTV3 would sell additional advertising slots, making it profitable for all concerned as long as the series is popular and viewers are tuning in.

The broadcasting industry burns cash in a wink, quipped one industry insider.

BDH has been successful in producing a number of popular TV programmes, including MTV Magazine, Sunday at Home and the Vietnamese version of the veteran US game show The Price is Right. Rival Cat Tien Sa has seen success with its Singing with the Stars.

Relaxed regulation of the industry and the burgeoning of private companies in television production, many of which have invested heavily in production facilities and human resources, suggest that the quality of programming may falter as a consequence.

But television writer Dang Thanh said private companies were more careful to maintain quality but success was in their economic interest. Many attracted professionals who considered television as their career, Thanh said.

A number of investors in the industry have also already gotten their fingers burned. Techcombank invested in the healthcare channel O2 in 2007, only to be forced to resell at a loss, despite a built-in advertiser base, the nation’s growing pharmaceuticals market.

Ocean Bank has a similar problem with the Shopping channel. The VNT Media’s director, Hong Minh, said the channel responded by making programming more attractive to viewers and advertisers. TV Shopping was dedicated to providing consumers with an attractive retail channel, and Minh said she expected the channel to turn a profit in the near future.

Minh said competition in the broadcasting industry was not that fierce and was consistent with the country’s level of economic development.

Some advertisers were expressing concern, however. Tran Duc Minh of CG Viet Nam said the poor quality of some game shows had caused viewership and advertising revenue to decline. Many viewers had also complained about the large amount of advertising during some programming. — VNS

Tags: Vietnam broadcast