Media execs query SingTel/StarHub Premier League joint bid

The study, reported in the local press today, argued that the arch-rivals would come together to secure the football rights. "We believe both StarHub and SingTel are planning on submitting a joint bid for the Premier League in order to prevent a bidding war and excessive content costs," it said "We view a joint bid followed by equal sharing as the best possible outcome for StarHub, while allowing SingTel to continue developing its pay-TV platform."

However, a media agency source who preferred not to be named said that he had "yet to hear of a more bizarre tie-up".

“Let's be realistic. Will they tie up? Doesn’t it go against the principle of fair practice?" he asked. "And why would EPL allow it? If they start allowing it in Singapore then how will they stop other markets adopting the same strategy?"

This source pointed out that the football channels contribute to 50 to 60 per cent of StarHub’s revenue and that the EPL is a core part of this. If SingTel's pay-TV arm Mio also gets it then StarHub’s strategy could fall down.

Another media agency source, however, feels that this joint bid is "purely a rection to EPL pricing" and that it "might make some sense". 
He added: “I think last time StarHub paid a huge amount for EPL rights and it might think it's not worth it this time round. Obviously a joint bid means that they will be able to reduce the articficial increase in rates, which happens during these bids, and pass on the savings to consumers.”

Some experts have pointed out that if the deal goes through the ultimate winner would be SingTel as it would be able attract more advertising and subscribers. A few months back SingTel won the Champions League rights, which caused a big stir in the market.

“SingTel has not managed to crack the market yet and this might be its chance. If it has both Champions League and EPL then some consumers might want to ditch StarHub,” said another source.

Media experts also suggested that even though StarHub might be compromising on its competitive advantage, it might partner with StarHub as it feels it has a better chance of winning. "StarHub might prefer to share the content than not have it at all, " the source said.

Other bidders for EPL in Singapore are likely to include ESPN Star Sports, free-to-air channel MediaCorp and Goal TV. The move is also likely to bring broadcasters on a head on conflict with content channels.