COMMENT: Singapore telcos should combat rising costs of sports TV rights with joint bids
Once again, football fans in Singapore were left agonising and wondering if they could catch the telecast of the opening matches of the Uefa Champions League group stage.
The latest instance occurred this week, with Singtel unable to confirm a deal with the Champions League broadcast rights owner DAZN, even after the opening 16 group-stage matches were played in midweek.
If Singtel and StarHub truly care about their customers, the telco heavyweights should set aside their competitive impulses and join forces to bid for broadcast rights of major sporting events in the future.
In fact, if MediaCorp wants to come on board, then all the better, because the three local players will need all the financial muscle they can muster to counter the exorbitant pricing which the rights owners will slap on them to broadcast matches.
The bottom line is that the viewing public has been repeatedly frustrated in recent years by the frequent impasses in the telcos’ negotiations with various rights owners, and are seeking alternative – and often illegal – sources to watch their favourite sports events.
Although SingTel managed to secure a last-minute, temporary arrangement to air 10 of the 16 opening Champions League matches, football fans who paid at least $69.90 per month to subscribe to Singtel TV’s football channels were understandably livid at the uncertainty surrounding the live telecasts since the “must-watch” competition is part of the subscription package.
Coupled with their discontentment of being made to pay ever-escalating premium to watch top sporting events like the English Premier League and the Fifa World Cup Finals, it is perhaps understandable why many fans have resorted to visiting online streaming sites or buying TV streaming devices to get their sporting fix.
Yet, it must be said that the local broadcasters are also caught in a quandary.
On the one hand, they have to keep prices competitive so as not to drive away their potential customers. On the other hand, they are at the mercy of broadcast rights owners, who view the Singapore viewership market as a small but rich cash cow which they are eager to milk as much profit from.
Who should Singtel and StarHub appease then? If their answer is (hopefully) their customers, then there is an obvious solution: hold out an olive branch, and stop fighting between themselves for screening rights to these sports events.
It is unhelpful and unhealthy if the two telcos are devoting a large chunk of their efforts to outbid each other, while the rights owners sit back and gleefully watch the bid prices skyrocket.
Since the sports fans are increasingly fighting back by eschewing legal viewing methods and cancelling their subscriptions, the telcos are caught in a no-win situation unless they combine their financial strengths and submit a strong bid to convince the rights owners.
And if they truly believe that their customers deserve the best sports content-providing service they can get, then don’t just stop there: get regional broadcasters on board too.
Why not explore the possibility in reaching out to Malaysia’s Astro? The pay TV service provider is also troubled by the rising cost of rights ownership, and had contemplated on not broadcasting this season’s Champions League before backing down due to customer complaints.
Surely any kind of combined bidding effort for this region is far more viable than the current situation where there is persistent consternation among the service providers and the paying fans.
So if Singtel and StarHub are really committed to providing reliable live telecasts to its sports-loving customers, then they should stop worrying about trying to outdo each other.
No one wins in this small but lucrative TV market unless there is unity against greedy rights owners. It is up to the telcos to show that this cash cow is not to be trifled with.
Disclaimer: The views expressed in this article are the personal opinions of the author.
Related story:
Singtel secures temporary deal for Champions League broadcast in Singapore
