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...analysis for action
...strategy for growth



Now Broadband TV - getting stronger
September 2005

PCCW’s Now Broadband TV in Hong Kong has signed agreements with a number of key content owners, including Star Group, Discovery and Home Box Office (HBO) Asia Pacific. HBO will also supply movies from Hollywood channels.

With over 400,000 IPTV subscribers, we believe the success of Now is primarily down to;

  • Low entry and subscription costs for subscribers by offering;
    • Differentiating packages – instead of long-term subscriptions to large bundles, users can choose smaller bundles of channels to subscribe to, and also shorter subscription periods (one, six, twelve months).
    • Free set-top boxes.
  • Availability of high bandwidth broadband to a greater portion of the residential market – Now offers upto 6Mbps to over 90% of Hong Kong.
  • Deals with key content providers. Now has deals with BBC, MGM, MTV, Bloomberg and Disney. Chinese language only bundles are also available via localized programming.

The above have led to the large number of IPTV subscribers in a short period of time, and this has resulted in further success i.e. more content providers signing up. We see this as crucial to what we believe will be the next step – upselling premium content to customers for increased ARPU.

 
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