Singtel has launched an OTT video app that offers several thousand hours of movies, TV shows, children's programs and other video content, delivered over the operator's 4G network. The operator has partnered with Nickelodeon and Viu, the latter an OTT service launched by Hong Kong telco PCCW Ltd. (NYSE: PCW; Hong Kong: 0008) that has gained over a million subscribers since its launch in October 2015.
Interestingly, Singtel's own OTT streaming service HOOQ, launched with Sony Corp. (NYSE: SNE) and Warner Bros. Entertainment Inc. , is not part of the Cast package. It's available in the Philippines, India, Indonesia and Thailand, but not Singapore.
Singapore Telecommunications Ltd. (SingTel) (OTC: SGTJY) is citing the advantages of the 4G network as major drivers for this service, though users will be able to offload to WiFi as well. But its press release stresses "flexibility and freedom to enjoy it anywhere" and that "mundane daily commutes will be a thing of the past," clearly pushing out-of-home viewing. Subscribers are also offered the option of adding 1GB to their package for Singapore $3 per month.
Downloading for offline viewing is available for some content, which is becoming an important differentiator for OTT streaming services. The app is available on the Apple App Store and Google Play store.
Customers can choose from four "content packs" priced at S$4.90 per month, which include: Viu Premium, offering South Korean and Japanese dramas and variety shows; a kids' pack; an Asian Hits pack with programming from Hong Kong, China and Singapore; and a Hallyu pack, with popular South Korean broadcast content.
Monetizing OTT video traffic is probably the greatest challenge operators face today. It's clear video is going to account for the vast majority of network traffic, so operators need to create capacity for it. But how do you get a return on that investment? One of the benefits that 4G offers is more capacity, enabling higher quality video delivery.
Singtel has clearly decided to leverage its new network and launch an OTT service of its own -- but, crucially, with big partners. And it is offering the content closely coupled with low-priced data upgrades, which will help bump up ARPU.
This is an interesting approach which, if successful, might offer lessons for other operators looking to add value and/or monetize their 4G investments.
— Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation