SingTel loses BPL content as key differentiator but momentum likely intact

Built-up content and scale provides resilience.

Late last week, regulatory confirmation came on the cross carriage of Barclays Premier League (BPL) content, noted Barclays Research, wherein the Media Development Authority (MDA) has ruled that while stand-alone BPL content will have to be cross-carried by SingTel, bundles would be exempt.

Subsequently, SingTel has announced pricing for BPL stand-alone subscriptions at S$59.90 (materially higher than earlier pricing to match the tariff now with the cost) while keeping its Gold packs (which bundle in a lot more content) at S$64.90. Consequently, the stand-alone BPL subscriptions will also be available on StarHub's pay-TV platform at S$59.90 a month as well.

"This eliminates BPL content as a unique differentiator that has helped SingTel ramp up its cable TV subscriber share; hence, this appears marginally positive for StarHub as it likely reduces its market share leakage," said Barclays, commenting on the new regulation.

"However, SingTel has built up content and scale in the past three years on Mio TV, and the ruling should not impact SingTel’s momentum materially, in our view," it added.