Tuning out: StarHub’s pay TV subscriber figure slips 1.5% in 1Q16

Is it losing the battle against Netflix’s cheaper monthly charge?

StarHub lost some avid audiences as the number of its pay TV subscribers slid 1.5% QoQ, no thanks to a fresh competition from Netflix on top of its “TV Lite” promotion windup.

DBS Group Research revealed that Netflix has a price tag of S$11 per month, at around 60% discount to StarHub’s entry level of S$27.

StarHub’s pay TV business contributes 18% of service revenue to the group, but it can still ignore the recent subscription downturn as it faces little threat in the medium term, DBS Group Research said.

Besides, Netflix, which joined the game in early 2016, does not offer in-depth local language and sports contents as these are key drivers in the Singapore pay TV market, it added in its report.

“As a result, we may see only a marginal impact, 2-3%, on pay TV revenue going forward,” DBS Group Research added.