#Asia Streaming TV: Is Asia ready to pull the plug on cable and satellite?

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The reports of cable TV’s death may have been greatly exaggerated

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In the US, some claim the death of cable TV is nigh. As user behavior shifts to internet and mobile, is there really need for a cable TV as we know it? The rise of video streaming services like YouTube and faster internet shifted users to view content through a variety of devices.

Large screens still have some appeal with manufacturers pushing for bigger, cheaper, and flatter screens, but television as we know it has changed. Even network TV has seen itself creep into YouTube with shows having their own channels featuring clips and extra content aimed at extending viewer engagement.

The rise of video-on-demand (VOD)

Thanks to Netflix and its successful disruption of film and TV, video-on-demand’s quite a big thing these days. There’s an increasing number of players in the region. In Southeast Asia, there’s the homegrown service iflix, HOOQ, and Hulu available. Netflix just entered the region quite recently. A new player – VIDGO – is now in limited release, promising build-your-own programming packages and combining network TV, sports, and on-demand content. Whether Amazon actually gets into the game in their entry to Singapore next year is to be seen.

Also Read: Move over, Netflix; Singtel-backed Hooq is finally streaming in Singapore

But what does it entail to enjoy these services? Tech developments have been slightly different this side of the globe, though. Pay TV is still regarded as a robust industry in Asia-Pacific despite slowdowns in adoption in some locales. Rather than seeing streaming video disrupt network and cable TV, we are seeing them complement each other and somehow mashed up into weird symbiotic service bundles.

The cost of cable and internet

In the Philippines, for example, cable TV has been seen as a luxury. Introduced in the early 1990s, cable TV’s nemesis wasn’t competition or disruption (as all the major players were eventually gobbled up by SkyCable). Rather, it was theft. People were literally hooking up coaxial cables to service lines and enjoying the service for free!

It was only in 2013 when a law was passed to outlaw illegal cable tapping. That and the entry of satellite TV provider Cignal and Dream (to compete with SkyCable), and the eventual shift of network TV to digital signal actually boosted adoption of paid cable.

A possible reason why streaming content on TV isn’t as widespread is because of high cost and slowness of internet connections in the region. With the exception of Singapore and Thailand, SEA countries like the Philippines, Indonesia, Myanmar, and Laos have to make do with glacial internet of less than 5 Mbps speeds. That should be enough for some 720p video streaming but the cost isn’t exactly cheap. Meanwhile, a basic standard definition cable TV package in Manila costs just a third of the price of the lowest internet service package.

Also Read: Singapore has world’s fastest Internet, but South Korea has the best: Akamai report

Internet, cable, and streaming video in overlapping bundles

Another interesting angle is that streaming services often come bundled with other services. In the Philippines, SkyCable also offers cable and mobile internet and video-on-demand (VoD) from their partner channels. Cignal satellite TV is owned by major telco PLDT which also offers DSL, mobile, and even fibre internet. PLDT is also partnered with SEA VoD platform iflix. Globe, the other major telco player offers both mobile and DSL and is partnered with VoD player HOOQ.

Across the region, cable and satellite TV providers are doing the same. Malaysia has Astro On the Go, Singapore has Singtel TV, and Indonesia has HomeCable OnDemand. It’s this weird symbiosis that makes consumers not really care about making a choice between cable TV, internet, or streaming. Perhaps only those with a miserly approach to monthly bills would nitpick on how to configure service packages to get the most out of these services.

A challenge of infrastructure and positioning

The challenge then, for streaming and VoD is the infrastructure and positioning. Can these services work without a hitch given the slow internet speeds in the region? Netflix’s guide mentions these recommended speeds:

  • 3 Mbps for SD quality
  • 5 Mbps for HD quality
  • 25 Mbps for Ultra HD quality

Comparing these with average SEA speeds mean that they are enough for streaming in SD, so there’s a chance right there. However, this only means that, to enjoy VoD, you have to have an internet connection alongside your VoD subscription. In addition, if you want to watch it on a big screen, you need either a smart TV or a streaming device. This just makes it a toss-up between just getting the bundles provided by the telcos and cable TV companies and the wide selection of programs and films available on these streaming services.

Also Read: Biggest threat to OTT industry is not Netflix, but another video giant

Oh, and there’s always the competition from illegal streams and piracy to contend with. Still, for many TV and film aficionados, developments in tech and services in this arena would be interesting to watch as we enter a new year.

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The views expressed here are of the author’s, and e27 may not necessarily subscribe to them. e27 invites members from Asia’s tech industry and startup community to share their honest opinions and expert knowledge with our readers. If you are interested in sharing your point of view, submit your post here.

Featured Image Copyright: zinkevych / 123RF Stock Photo

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