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VIETNAM MARKET REPORT Q1/2018 Abbreviations

AVG An Vien Television

MIC Ministry of Information and Communications

SBV State Bank of

SCTV Saigontourist Company

GSO General Statistics Office

CT Cable television

PT Pay TV

VIRAC Vietnam Industry Research And Consultant

VTC VTC Digital TV

VTVcab Vietnam Cable Television Center

2 Content

Executive summary 2.2.2 The technology of pay TV nowadays 41

1. Business environment 5 2.2.3 Typical pay TV companies and products 50

1.1 Macroeconomic situation 5 2.2.4 Pay TV product groups comparison 58

1.2 Legal framework 9 2.3 Development trend of Pay TV 67

2. Market overview 17 2.4 Industry planning 69

2.1 Current status of the world television market 17 3. Enterprise analysis 72

2.1.1 History of the world television market 18 3.1 Revenue and profit 72

2.1.2 Pay TV in the world 20 3.2 Subscribers and market share 74

2.2 Current status of Vietnam's television market 25 3.3 Number of employees 78

2.2.1 Current status of Vietnam's television market 25 3.4 Technology used 80

3 Executive summary

Television technology in the world has gone through three main stages: electronic television, electromagnetic television, digital television.

Revenue from pay TV services in North America and has always accounted for the largest share of the region

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In 2017, SCTV and VTVcab continue to be the two leading players in subscription and market share in pay television.

Later on, pay-TV (IPTV) technology has made significant progress in terms of revenue. On 17/10/2017, Minister of Information and Communications signed Decision No. 1761/QD-MICT

4 Content

1. Business environment

1.1 Macroeconomic situation

1.2 Legal framework

5 1. Business environment 1.1 Macroeconomic situation

GDP in 2017 was estimated to increase by 6.81% compared to 2016, of GDP growth, 2011 - 2017 which increasing by 5.15% in Q1; 6.28% in Q2; 7.46% in Q3; 7.65% in Q4.

Content is intentionally removed for demo purposeSource: VIRAC, GSO

Urbanization rate, 2010-2017

Source: VIRAC,GSO

6 1. Business environment 1.1 Macroeconomic situation

Vietnam's population has grown rapidly over the last few decades. Population pyramid, 2016

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VND/USD exchange rate, 2013-2017 Source: VIRAC, GSO

In 2017, the VND/USD exchange rate was quite stable around VND 22,400.

Source: VIRAC, SBV

7 1. Business environment 1.1 Macroeconomic situation

Disposable income and household expenditure, 2008 - 2017f VND million

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Retail sales of electronic products by group, 2017 VND billion

Source: VIRAC, GfK 8 Content

1. Business environment

1.1 Macroeconomic situation

1.2 Legal framework

9 1. Business environment 1.2 Legal framework

Telecommunications Law:

Radio Frequency Law:

There are also decisions, decrees and circulars that regulate actors and behaviors in the field of television.

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10 1. Business environment 1.2 Legal framework

• Decision No. 2451/QD-TTg of the Prime Minister on the project on digitization of transmission and broadcasting up to 2020

APPENDIX LIST OF PROGRAMS, PROJECTS FOR DIGITALIZING TRANSMISSION, BROADCASTING TELEVISION IN LAND TO 2020 The host Expense No. Name of theContent program/project is intentionallyCoordination Unit removedCapital for demoExecution purpose time institution (VND billion)

11 1. Business environment 1.2 Legal framework

AVG's DVB-T2 digital terrestrial coverage (MobiTV) as of July 2015.

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Source: VIRAC, MIC

12 1. Business environment 1.2 Legal framework

VTV DVB-T2 terrestrial television coverage map as of August 2016.

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Source: VIRAC, MIC

13 1. Business environment 1.2 Legal framework

RTB digital terrestrial TV coverage of DVB-T2 DVB-T2 digital terrestrial television coverage of SDTV

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Source: VIRAC, MIC

14 1. Business environment 1.2 Legal framework

Circular No. 165/2014/TT-BTC dated 14/11/2014

Decree No. 06/2016/ND-CP issued by the Government on 18/01/2016:

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For foreign programs provided on radio and services in Vietnam, the following requirements must be satisfied: The number of foreign programming channels operated on the radio and television pay service system shall not exceed 30% of the total exploitation channel;

15 1. Business environment 1.2 Legal framework

Circular No. 18/2016/TT-MICT

On 15/11/2016, the Minister of Information and Communications signed the Circular No. 24/2016/TT-MICT regulating the quality of radio and television broadcasting services.

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On 17/10/2017, Minister of Information and Communications signed Decision No. 1761/QD-MICT

16 Content

2. Market overview

2.1 Current status of the world television market

2.2 Current status of Vietnam's television market

2.3 Development trend of Pay TV

2.4 Industry planning

17 2. Market overview 2.1 Current status of the world television market – 2.1.1 History of the world television market

History of the world television market:

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18 2. Market overview 2.1 Current status of the world television market – 2.1.1 History of the world television market

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19 2. Market overview 2.1 Current status of the world television market – 2.1.2 Pay TV in the world

Revenue from pay TV services in North America and Europe has always The share of global pay TV revenues by region, 2015 - 2016 accounted for the largest share of the five regions.

Content is intentionally removed for demo purposeSource: VIRAC, Digital TV Research The proportion of paid television revenues by technology, 2014 - 2015

Source: VIRAC, Digital TV Research

20 2. Market overview 2.1 Current status of the world television market – 2.1.2 Pay TV in the world

USD billion Worldwide Pay TV Sales, 2010 - 2017f

Content is intentionally removed for demo purpose Source: VIRAC, PWC World TV market share, 2009 - 2015

Source: VIRAC, Statista

21 2. Market overview 2.1 Current status of the world television market – 2.1.2 Pay TV in the world

IPTV Television Sales in the World, 2010 - 2016e USD billion

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Number of IPTV subscribers in the world, 2010 - 2016e Million subscribers

Source: VIRAC, Digital Research Ltd

22 2. Market overview 2.1 Current status of the world television market – 2.1.2 Pay TV in the world

Number of DTH subscribers, 2010 - 2016e Million subscribers

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Source: VIRAC, Digital Research Ltd

23 2. Market overview 2.1 Current status of the world television market – 2.1.2 Pay TV in the world

Top 10 countries with the highest paid TV service revenue in 2015 America is a leading and very early country in the pay USD billion television industry.

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Top 5 pay TV service providers in the world in 2015

Number of Service provider Form of technology Country subscribers

Source: VIRAC, Digital Research Ltd 24 Content

2. Market overview

2.1 Current status of the world television market

2.2 Current status of Vietnam's television market

2.3 Development trend of Pay TV

2.4 Industry planning

25 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.1 Current status of Vietnam's television market

History of Vietnam Television

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26 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.1 Current status of Vietnam's television market

Current status of Vietnam's television market:

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On the form of broadcasts:

27 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.1 Current status of Vietnam's television market

Domestic television:

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28 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.1 Current status of Vietnam's television market

Pay TV definition – Pay TV

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29 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.1 Current status of Vietnam's television market

Turnover across the pay television industry has increased steadily over VND billion Paid TV revenue, 2012 - 2017 the years.

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Subscribers of PT in Vietnam, 2011 - 2017e Thousand subcribers

Source: VIRAC, MICT

30 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.1 Current status of Vietnam's television market

Average revenue per subscriber per month, 2015 USD

Content is intentionallySource: VIRACremoved for demo purpose Number of PT subscribers in some cities, 2017e and are the two leading cities in terms of the number of paid television subscribers.

Source: VIRAC

31 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.1 Current status of Vietnam's television market

The proportion of PT subscribers among 5 major cities, 2017e

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Number of television subscribers by technology, 2011 - 2017e Thousand subcribers

Source: VIRAC

32 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.1 Current status of Vietnam's television market

Pay television revenue by technology, 2015 - 2016 VND billion

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Proportion of paid television technology in Vietnam 2016

Source: VIRAC

33 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.1 Current status of Vietnam's television market

Some typical TV stations:

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34 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.1 Current status of Vietnam's television market

Some typical TV stations:

• Vietnam Television – VTV.

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35 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.1 Current status of Vietnam's television market

Typical broadcasting channels of Vietnam Television

Channel Logo Content Duration Official broadcast date

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36 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.1 Current status of Vietnam's television market

Organizational structure of Vietnam Television - VTV

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37 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.1 Current status of Vietnam's television market

Some typical TV stations:

• VTC Digital.

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38 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.1 Current status of Vietnam's television market

Typical channels of VTC Digital TV

Year of No. Channel Logo Content deployment

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39 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.1 Current status of Vietnam's television market

Some typical TV stations:

• MobiTV (former name– An Vien Television).

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40 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.2 The technology of television – Internet TV

IPTV Television (Internet).

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41 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.2 The technology of television – Internet TV

Internet Television (IPTV)

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42 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.2 The technology of television – Cable TV

Cable TV (CATV)

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43 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.2 The technology of television – Cable TV

Cable TV

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44 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.2 The technology of television – Mobile TV

Mobile TV (Mobile -TV).

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45 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.2 The technology of television – Digital TV

Digital TV

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46 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.4 The technology of television – Digital TV

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47 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.2 The technology of television – Digital TV

Satellite Digital TV

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48 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.2 The technology of television – Digital TV

Digital terrestrial TV

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49 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.3 Typical companies and products

Introduction of Cable TV Vietnam VTV Cab.

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50 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.3 Typical companies and products

Introduction of Saigon Cable TV Company (SCTV).

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51 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.3 Typical companies and products

Introduction of Vietnam Satellite Television Company Limited.

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52 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.3 Typical companies and products

Introduction of Audio Global Corporation (AVG)

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53 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.3 Typical companies and products

Introduction of VTC Multimedia Corporation.

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54 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.3 Typical companies and products

Introduction of Viettel Telecommunications Corporation.

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55 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.3 Typical companies and products

Introduction of FPT Telecom Joint Stock Company.

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56 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.3 Typical companies and products

Introduction of the television service development company (MyTV Television Company).

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57 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.4 Comparison among Pay TV groups

Type of Subscri Pack of data Roaming Internet Promotion Function television ption

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58 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.4 Comparison among Pay TV groups

Type of Pack of data Roaming Subscription Internet Promotion Function television

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59 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.4 Comparison among Pay TV groups

Type of Pack of data Roaming Subscription Internet Promotion Function television

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60 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.4 Comparison among Pay TV groups

Type of Pack of data Roaming Subscription Internet Promotion Function television

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61 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.4 Comparison among Pay TV groups

Pack Type of of Roaming Subscription Internet Promotion Function television data

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62 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.4 Comparison among Pay TV groups

Type of Pack of data Roaming Subscription Internet Promotion Function television

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63 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.4 Comparison among Pay TV groups

Type of Pack of data Roaming Subscription Internet Promotion Function television

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64 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.4 Comparison among Pay TV groups

Type of Pack of data Roaming Subscription Internet Promotion Function television

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65 2. Market overview 2.2 Current status of Vietnam's television market – 2.2.4 Comparison among Pay TV groups

Type of Pack of data Roaming Subscription Internet Promotion Function television

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66 Content

2. Market overview

2.1 Current status of the world television market

2.2 Current status of Vietnam's television market

2.3 Development trend of Pay TV

2.4 Industry planning

67 2. Market overview 2.3 Development trend of Pay TV

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68 Content

2. Market overview

2.1 Current status of the world television market

2.2 Current status of Vietnam's television market

2.3 Development trend of Pay TV

2.4 Industry planning

69 2. Market overview 2.4 Industry planning

Oriented development:

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70 2. Market overview 2.4 Industry planning

Development targets

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71 2. Market overview 2.4 Industry planning

TheContent roadmap for the is digitization intentionally of television and land removed-surface television forbroadcasts demo of the Government purpose

72 Content

3. Enterprise analysis

3.1 Revenue and profit

3.2 Subscribers and market share

3.3 Number of employees

3.4 Technology used

73 3. Enterprise analysis 3.1 Revenue and profit

Revenue of some companies in the pay television sector in 2016 VND billion

Content is intentionally removed for demo purpose Source: VIRAC Profits of some companies in the pay television sector in 2016 VND billion

Source: VIRAC

74 Content

3. Enterprise analysis

3.1 Revenue and profit

3.2 Subscribers and market share

3.3 Number of employees

3.4 Technology used

75 3. Enterprise analysis 3.2 Subscribers and market share

Number of subscribers by business, 2017 Subcriber Pay TV market share according to the number of subscriptions, 2017

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76 3. Enterprise analysis 3.2 Subscribers and market share

Subscription share of the Cable TV group, 2017e Subscription share of digital satellite TV, 2017e

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Source: VIRAC

77 Content

3. Enterprise analysis

3.1 Revenue and profit

3.2 Subscribers and market share

3.3 Number of employees

3.4 Technology used

78 3. Enterprise analysis 3.3 Number of employees

Number of employees at some pay television companies in 2016

Unit: Person

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Source: VIRAC

79 Content

3. Enterprise analysis

3.1 Revenue and profit

3.2 Subscribers and market share

3.3 Number of employees

3.4 Technology used

80 3. Enterprise analysis 3.4 Technology used

Types of TV technology used at some companies that offer paid television services

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81 REPORT DISCLAIMER

REPORT DISCLAIMER

This document has been prepared in good faith on the basis of information available at the date of publication without any independent verification. VIRAC has produced this report for private circulation to professional clients only. All information and statistical data herein have been obtained from sources we believe to be reliable and made to ensure the accuracy of the contents of the pages of the report at the time of preparation. Such information has not been independently verified and VIRAC makes no representation or warranty, whether express or implied, of any kind with respect to the document and its contents, information and materials. The content found in this report is proprietary to VIRAC and is provided solely for your personal and non-commercial use. You agree that you will not use this report for any purpose that is unlawful and that you will not reproduce the report or redistribute it outside your organisation, or place it on a website for public access without the express written permission of VIRAC.

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