Customers subscribe for cable TV K+ in Ho Chi Minh City. Photo: Diep Duc MInh
The national broadcaster Vietnam Television will disinvest from the pay TV market by selling most of its stakes in three major providers, whose combined market share is almost 73 percent, local media reported.
VTV will sell 49 percent stake in VTVcab, which boasts two million subscribers mainly in the northern region, Hoang Ngoc Huan, CEO of VTVcab, was quoted in a Tuoi Tre report as saying.
The broadcaster will sell most of its shares in SCTV, which it owns 50 percent. A joint-venture between VTV and Saigontourist, SCTV now has more than 2.3 million subscribers.
It will also partially withdraw its investment in K+, where it has the controlling power with a 51 percent stake.
Founded in 2009 in partnership with France's Canal+ Group, the satellite TV provider with a strong offering of sports content boasts 800,000 subscribers.
Nguyen Thanh Luong, deputy CEO of VTV, said the national broadcaster will continue to focus on content production after the sales, which are slated to be completed next year.
All the proceeds will be submitted to the government investment arm SCIC, Luong said.