Best Content strategy | PCCW |
| Last year's winner: | New category in 2010 |
| Business segments: | Mobile, fixed-line and broadband; IPTV; IT services and BPO |
| Chairman: | Richard Li |
| Group managing director: | Alex Arena |
| Key shareholders: | Pacific Century Regional Developments (23%), China Unicom Group (20%) |
| Key stats (2009): | Profit $193m, up 18% from 2008, revenue $3.21b; broadband subs 1.29m, fixed-line residential subs 1.4m, 1.42m mobile subs |
PCCW's content strategy for its IPTV offering has evolved with the growth of the business and after years of heavy investment, is reaping the benefits. The company's earnings last year increased 18%.
The number of Now TV subs passed the one-million milestone in the second half of last year and ARPU has doubled over the last four years to $22.50.
It offers 19 free Now TV channels and four self-produced channels, including a local news channel (Now News), a business finance news channel (Now BNC) and Now HK (a general entertainment/lifestyle channel). The company says it intends to apply for a free TV service license in Hong Kong.
"We developed our strategy according to the competitive landscape, understanding what is important for customers as subscription drivers, and we grew our content through a customer segmentation approach," Janice Lee, PCCW's EVP for TV and new media, told Telecom Asia.
The company initially started by targeting the premium and affluent market, and signed up content appealing to this group, mostly international content and channels that were not available in the market at the time.
Lee said that as it expanded its business and started reaching more of a mass market, it ventured into more local production, such as local news, financial news and general entertainment in Cantonese.
"Having achieved a critical mass of subscribers, we then acquired and produced sports content and channels that are premium ARPU drivers," she said.