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Netflix and kill: Is pay TV losing?

Survey

Male boss preference

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s Netflix choking the life out of pay TV businesses? If the number of users choosing online videos over the usual TV content is anything to go by, the answer may be yes. More than 3 in 4 (76%) connected consumers in Singapore are watching online videos on a daily basis, a survey by Kantar TNS revealed. This is slightly higher than the number of viewers watching traditional broadcast TV (71%) – 18% of these consumers use paid-for subscription online services such as Netflix. These figures bring bad news to Singapore’s pay TV service providers such as Singtel and most especially StarHub, which just lost 11,000 pay TV subscribers. UOB KayHian analyst Jonathan Koh says this has been the telco’s fifth consecutive quarter of shrinking numbers, as management shared that a larger-than-usual proportion of its pay TV subscriber base completed their contracts. It also faces competition from alternative viewing options, such as over-thetop (OTT) video services, which are TV streaming options that can be purchased without a cable subscription. StarHub is obviously badly and directly hurt as its pay TV business makes up 18% of its service revenue. DBS analyst Sachin Mittal says, “Since Netflix entered the Singapore market

Should pay TV providers panic?

in early 2016, the giant telco already saw its pay TV subscribers drop 1.5% q-o-q in 1Q16 due to Netflix’s entry and it eventually ended its ‘TV lite’ promotion.” Lacking local content However, Mittal notes that Netflix does not offer comprehensive local language content and sports content, which is a key driver in the Singapore pay TV market. Analysts from RHB express a similar view. They note that whilst there are concerns that Netflix would cannibalise existing pay TV services of operators such as StarHub, they expect this to be mitigated by the lack of “local, iconic, and live content on Netflix including sports.” Netflix, however, plans to have more localised content.

StarHub is obviously badly and directly hurt as its pay TV business makes up 18% of its service revenue.

Mobile App Watch

DetecThink gives Dora the Explorer a run for her money Math practice is enmeshed in an engaging detective story. Whilst there are a lot of digital entertainment games for children, most lack educational content. A common concern amongst parents is their children spend too much time on digital games and not enough on their studies. Advocating the philosophy of “Learn + Play”, Intellipath Games designed DetecThink – an educational gaming app – to captivate children through an engaging detective mystery whilst integrating math practice seamlessly into the story that stimulates their problem solving and analytical skills. The only way to advance through the game is by completing addition and subtraction problems which progress in difficulty. It is an effective complement to fundamental concepts learned in school.

10 SINGAPORE BUSINESS REVIEW JANUARY 2017

A mix of learning and playing

Grace Chua, cofounder and director of Intellipath Games

A new survey by Randstand finds Singaporeans would rather have a man as a boss over a woman. Randstand’s global Q3 2016 Workmonitor looked at employees’ sentiment around the gender gap, measuring their preferences for a direct manager. It found out that globally, 65% of the respondents preferred a male boss. In Southeast Asia, it saw an even higher percentage of employees who preferred working for a male superior. Respondents in Singapore (76%), Hong Kong (78%), and Malaysia (73%) surpassed the global average by a good margin, the highest globally after Japan (80%) and Greece (80%). Equally rewarded Meanwhile, despite numerous research reports highlighting the continuous pay gap between genders, 79% of employees globally felt that men and women who are in similar roles were rewarded equally. This perception was equally reflected in the region, with respondents in Singapore (81%), Hong Kong (81%), and Malaysia (83%) expressing the same sentiment. Michael Smith, managing director for Randstad Singapore, Hong Kong, and Malaysia, has expressed his concern over the results. “The Workmonitor results show a worrying trend in this region with such strong preferences for having male bosses in the workplace - despite open discussions around the issue of gender equality going on around the world.” He says corporate and government initiatives are just a start. “For real change to take place, the issues around gender equality need to be recognised and mind-sets need to evolve.”


Singapore Business Review (December 2016 - January 2017)