K+ keeps ‘clean’ channels despite loss

The Vietnam Satellite Digital Television Company Limited (VSTV or K+)-  a foreign joint venture (JV) between Vietnam Television (VTV) and France’s Canal +, a leading corporation in pay TV in Europe- was reported to run at loss in the past three years.

Despite the loss, the JV later recently held a media meeting to announce its continued transmission of English Premier League (EPL) during the 2013-2016 season and the launch of its new channel K+PM earmarked for men.

“Like any other pay TVs, K+ willingly accepts running at losses in the initial period as we have spent round sums into leasing satellite as well as equipment and technology investments. To break-even, K+ must possess a certain subscriber amount,” said K+ deputy general director Jacques Aymar.

In Vietnam, only K + channels do not broadcast ads, though this is the largest source of revenue of TV channels.

Being queries why K+ denied putting ads on its channel albeit running at loss Aymar said: “Canal Overseas (part of Canal +) has been investing in seven satellite television systems in five continents and Canal + has followed the ‘clean channel model’ in all the systems. We pledge to keep our channels clean, not to upset the audience when the programmes are interrupted.”

K+’s representative said that the firm had counted the cost of EPL exclusive pack on its business plan which was outlined from 2010 and identified it as one of the most important investments of the firm.

According to IMG Media Southeast Asia Sales and Marketing vice president Dale Levin, IMG sold K+ two most attractive packages of the three packages divided by IMG and is under negotiations with Vietnam’s remaining paid TV stations on the sale of the third package consisted of about 280 matches not belonging to packages 1 and 2.

IMG Media is the legal sales agent of EPL broadcasting right in Vietnam.

“Auction of EPL broadcasting right was transparent. The IMG chose K+ not due to the financial factor, but because IMG highly appreciates the prestige, content production capacity, transmission infrastructure and strategy of K+,” said Levin.

In respect to strong reaction from Vietnam Pay Television Association (VNPayTV) upon K+’s exclusive EPL broadcasting right in Vietnam K+’s chief executive officer Cao Van Liet said the firm was willing to cooperate with other broadcasters to serve fans.

K+ is partnering with FPT, Viettel and VTVcab in broadcasting the EPL in Vietnam.

The firm sold two packages K+1 and K+NS (and the new channel K+PM from August 1, 2013) to these three stations whose subscribers could access these channels at VND150,000 ($7) subscription fees per month.