Pay-TV – Cooperation and competition PDF  | Print |  E-mail
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Friday, 25 April 2008 07:00

Rapid, continuous development of Vietnam’s economy has created a necessity for leaders and Party members to set objectives for sustainable development in the next few years. The entertainment industry, including publishing of books, newspapers, and magazines, music, movies, and broadcasting, plays an essential, direct role in this. The intense growth and competition that accompanies is quite a big challenge to overcome. In addition, potential is also an advantage. We should make use of this advantage in order to develop. This article will  find out an answer from Pay-TV industry

Law environment

Literary, artistic, and scientific organizations and persons are protected all over the world under international treaties that are co-managed by the World Intellectual Property Organization (WIPO) and others including organizations in Berne, Rome, Geneva, and Brussels. Among them, the Rome Convention has provisions to protect the rights of broadcasting organizations, the Brussels Convention protects the distribution of program signals transmitted by satellite and technology measures that manage the rights of broadcasting organizations. Vietnam is a member of the Berne, Rome, Brussels, and Geneva Conventions, as well as the Trade Related Aspects of Intellectual Property Rights or TRIPS Agreement. Member countries of such international treaties have the duty to protect the legal rights of other members under international treaty and national legislation. Contrariwise, citizens and legal persons of the member countries of the international treaties shall enjoy the rights according to the international treaties and national legislation.

Vietnam has signed three bilateral agreements with the United States of America and Switzerland, which include stipulations for copyrights and related rights. In addition to the obligations and rights granted in 5 multilateral international treaties, Vietnamese organizations and individuals have to implement the obligations according to these 3 bilateral treaties in order enjoy the protection of their own rights.

National legislation provides for protection in Vietnam, and ensures international integration. The Civil Code of 2005, the Intellectual Property Law 2005, and Decree 100/2006/ND-CP of Government instruction for these laws marked important legislative standards that encourage and protect talent and creativity. Provisions for rights, limitations, exceptions, terms of protection, owner rights, transparency, and assignment of broadcasting organizations were also included in these laws. However, the rights of Broadcasting Organization is related to copyright, so that these rights only arise when the broadcasting organization doesn’t  harm  to copyright

National and international laws protecting broadcasting organizations are consistently open and transparent, leaving enforcement of the laws the most important task remaining unfulfilled. Broadcasting organizations and TV Service Corporations, which must take initiative in applying measures that are not prohibited by law to protect their legal rights. An example of this is the implementation of obligations with respect to owner rights when broadcasting performances, recordings and programs. Enforcement authorities must try their best to protect the intellectual property rights of broadcasters and owners effectively and according to ordinance law. Among themselves, they must enhance monitoring systems and settle disputes and infringements competently. This challenge is not only limited within the national borders of individual countries, but also across borders throughout the globe. Vietnam is not only a member of many bilateral and multilateral international treaties, as mentioned above, but has also joined the World Trade Organization (WTO).

Violation – Law’s role

All countries in Asia have legislation protecting the rights of broadcasting organizations, and many international treaties have been put into effect in these countries. But Asia is the world’s most diverse region in terms of television broadcasts. Estimated losses in Asia from Pay – TV piracy in 2006 were US$ 1.13 billion. According to the Cable & Satellite Broadcasting Association of Asia (CASBAA), the violation of domestic and international copyright laws by broadcasting organizations saps the economic vitality of the industry. Theft of signals and decoding, and distributing programs to subscribers by national cap services companies happens everywhere.  This includes taping into cable lines, illegally distributing codes, using the same internet line or satellite, and reproducing cards. These activities play out at different levels around the region, which damages investors in broadcasting and pay-tv providers. Under the eye of investors, Vietnam is considered an unfriendly marketplace because these behaviors are widespread

Infringement on the rights of broadcasting organizations which limit economic growth, damage investments, creativity, government finance and legislation, and digital developments.

To resolve this situation, there is an effective piece of legislation with a number of criterions as follows:

- Create an equal, transparent and feasible play ground;

- Promote competition, increase selection for consumer, attract investment in the key fields such as digital technology;

- Do not restrict distribution or the provision of programs;

- Do not limit advertisements;

- Promote television activities to reserve and develop national culture, and science and modern technology;

- Protect copyrights and related rights effectively (rights of performers, phonogram  producers, and broadcasting organizations), especially electronic rights.

Copyright holders must apply technology, within the limits of the law, to protect rights management information, and to prevent accession and illegal exploitation. Rights management information is attached to works or copies of works about authorship, ownership, and conditions of usage and payment.

In this case, the technology measures are barriers, step-by-step solutions, and can be changed to optimize security and prevent infringement of copyrights. Passwords are just one tool that legal users have to ensure safety when dealing with sensitive materials. This means investors need to deploy the most advanced security technology in existence to protect the rights of authors, producers, and others.

Cooperation and competition

In the current period of rapid globalization digital technology and broadcasting have reached far beyond the traditional, local markets connected to a specific place, in order to meet the demand of an increasingly extensive and diversified, global market. Thus, cooperation and competition are must happen in conjunction with the development of the entertainment industry. Partnership implies counterweight and vice versa. Counterweights result in the solutions of existance and development. Monopoly market is abolished because competition among television channels in distribution have attracted many investors. Broadcasting organizations and investors compete and cooperate in the provision of technologies and services, such as satellite, cable, and mobile TV.

Organizations that have high quality programs and competent service have a better chance of controlling the market and attracting many customers.

According to forecasts, there will be 120 million Mobile TV users world-wide in 2011, a major boost from the 2.56 million users in the year 2006.  It is also predicted that there will be 146 million Pay-TV subscribers in the Asian - Pacific Ocean by 2011.

With 20 million households using tivi, 17 million mobile telephone subscribers, and 1,1 million subscribers of pay-television, Vietnam is a potential market for local and foreigner investors. Many big firms associated with Irdeto provide Vietnam with services such as DTH, DHT, Cable, IPTV, DVTV, DVB- H, and DMB. Presently Vietnam's partners include VTC, BTV, HTVC, SCTV, VCTV, HTV, VTV, VNPT, FPT, VDC, Vinaphone, Mobiphone, Vietel, and Sphone.

The ultimate investment package is the cooperation between:

TV Firm+ Exploiter DTH, DHT, Cable, IPTV, Mobile TV+ Business model uses conditional access technology + digital rights management

Economic growth tool.

It be industrial branch entertainment "coin money", television is one of quality banyan field invested attractive, vantage exploitation of many modern technologies, multi - feature.

A typical example of this is Time Warner, is a communication and entertainment corporation with the first world trademark for communication services on demand, cable transmissions, films, television, and publishing networks. CNN, Cartoon Network, Turner, HBO, Cinema, and Time Inc are names that are provided all over the world. The Turner Corporation has developed all over the world, including Asia with its attractive market place in China, India, Pakistan, Bangladesh, Thailand, Indonesia, Philippines, Singapore, Malaysia, Australia, Japan, Korea, and Vietnam.

The STAR Firm was damaged by a copyright violation in the 1960s, but has recovered with 400 channels and 87 million subscribers. wider band is 30 million subscribers, GDP growth is 3, 2%, 70 milliard USD income.

In Malaysia, with 3% of television copyright infringement, the income of TV broacasing was nearly USD 60 million in 2000, and increased to 150 million USD in 2006. In Thailand,  with a rate of  television copyright infringement 71%, the income was only USD 40 million in 2000 and increased to  USD 60 million in 2006. Similarly, in Philippines, the income was USD 10 million in 2000 and raised to USD 40 million in 2006 while the rate of television copyright infringement was 70%.

The evidence above reflects significant business expansion and added investment value of Pay -TV services, although it still is unknown in Vietnam. It is also clear that television infringement is a global problem, especially in Asia.

Pay -TV has two income sources. Besides revenue earned on subscription fees, they also collect money from advertisers. According to international experts, the turnover of television advertising is 60% lower than the rate of subscription turnovers. In an industrial base on those both the income source who is chance as well as challenge. According to the situation of CASBAA, the Vietnamese market has an advertising and subscription “cake” (that has the potential to reach, or that reached?) 350 million USD  in only 5 years time.

For this reason CASBAA and the Copyright Office of Vietnam organized a workshop on Pay -TV in Ho Chi Minh City on 10th July 2007. It provided a good opportunity for foreigner investors, as well as broadcasting organizations, television companies, and technology and service providers to cooperate with each other for successful, legal economic growth.

DR. Vu Manh Chu (COV)



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