Video streaming wars: Will the arrival of NetFlix topple StarHub’s supremacy?

The ubiquitous streaming media is set to launch next year.

A giant video streaming service is coming to town, and it’s knocking at the gates of an equally sizable telecommunications company.

As NetFlix gears for its launch at the very first day of 2016, one can only speculate as to how it would clash, or coexist, with incumbent telco StarHub.

According to analysts from UOB Kay Hian, the member of Singapore’s telco triumvirate is undaunted at the face of the potential heavyweight battle for video streaming dominance.

StarHub is confident that it could coexist with NetFlix, as the latter probably lacks Asian content, a vital fraction of Singaporeans’ viewing appetite.

“NetFlix’s content is mainly Western blockbuster movies and TV series, and probably lacks Asian content. StarHub could collaborate with NetFlix, given little overlap in their contents,” UOB Kay Hian said.

Meanwhile, UOB Kay Hian also says NetFlix can’t exactly replicate its success in the U.S. into the city-state, as its fame stems from its relatively cheap streaming service.

“Pricing for pay-TV services is lower in Singapore and the opportunity for NetFlix to undercut the incumbents is limited,” they added.

As an additional measure, StarHub will also rationalise its content portfolio.

“Content that is not popular will be weeded out, thus helping StarHub trim its cost of content,” UOB Kay Hian explained.