HÀ NỘI — The picture of Việt Nam’s pay TV market reveals many worrying signs of decline in the first half of this year, despite the growth of OTT television services.

According to the Ministry of Culture, Sports and Tourism (MCST), both the number of subscribers and revenue from pay TV services declined in the first six months of this year, compared to the same period last year.

This reflects the fierce competition and shifting trends in digital content consumption.

Specifically, the number of pay TV subscribers is estimated at 20.52 million, a 2.28 per cent decrease compared to the same period last year.

Revenue from pay TV services (including VAT) reached only about VNĐ4.88 trillion, down 2.4 per cent year-on-year.

There are currently 36 licensed pay TV service providers in Việt Nam, 22 of which operate in the OTT television sector – a model that is rapidly gaining momentum.

The shift toward digital platforms is inevitable but also poses significant challenges for traditional broadcasters.

Although the radio–television sector ended last year with a modest revenue increase of 1.7 per cent, reaching VNĐ12.5 trillion, many major broadcasters recorded substantial declines.

Vietnam Television (VTV) earned only VNĐ3.64 trillion last year, down 12.3 per cent compared to 2023.

Ho Chi Minh City Television (HTV) saw a 20 per cent drop, with revenue falling to around VNĐ839 billion.

Both VTVcab and SCTV also experienced declines compared to the same period last year.

In contrast, the OTT market last year saw a significant surge, with the number of subscribers increasing from 5.56 million to 7.4 million – a 33 per cent rise.

Revenue from OTT services reached nearly VNĐ1.7 trillion, up 7 per cent year-on-year. However, the growth in subscriber numbers did not keep pace with revenue growth, indicating intense price competition among OTT providers to maintain market share.

A major issue in the current OTT market is the uneven playing field with cross-border platforms such as Netflix, Amazon TV, Apple, WeTV, iQIYI and MangoTV.

Although these platforms are not legally allowed to offer pay TV services in Việt Nam under existing regulations, enforcement remains limited.

Last year, several platforms were ordered by regulators to remove certain content or adjust their service offerings to comply with Vietnamese law.

Netflix, for instance, was required to take down certain TV shows and is now only allowed to stream films under a licensed film distribution model.

iQIYI was compelled to remove all non-film content and is no longer permitted to offer radio or pay TV services in Việt Nam.

These actions reflect growing efforts to tighten control over cross-border digital broadcasting.

Additionally, in the first half of this year, the MCST issued and revoked numerous broadcasting, television and electronic information licences.

Specifically, four new radio licences and five television licences were issued, along with dozens of licences for editing and registering programme channels.

At the same time, five TV operation licences, 13 domestic channel production licences, and 18 foreign programme editing licences were revoked.

Việt Nam’s television market is undergoing a period of significant turbulence. The rapid development of OTT television, fierce competition among domestic and international players, and evolving consumer behaviour are pushing the industry to adapt with new strategies, technologies, and business models. — VNS