Specific legal framework needed for OTT media service management

Hanoi (VNA) - Representatives of the Vietnam Pay TV Association (VNPayTV) said domestic pay TV service providers should be treated equally as foreign firms.

In order to provide and use VOD (video on demand) services  in particular and on-the-top OTT (content provided on the Internet platform) in general in accordance with practical conditions, representatives of many businesses and associations acknowledged that state management agencies should simplify procedures, without applying the licensing and content management mechanism like traditional pay television services.

These ideas were given at a recent workshop on “Digital transformation in the field of television and digital content services – international experience and suggestions for law development for Vietnam” that opened in Hanoi on May 14.

Economic benefits

According to economic expert of Alpha Beta, Konstantin Matthies, a recent study of the economic impact of video on demand (VOD) services show that video on demand services will receive investment of 10.1 billion USD in Asia by 2022.

For the Vietnamese market, video-on-demand brings numerous benefits, directly support the development strategy of the country’s film industry while helping Vietnam integrate internationally, becoming  one of the top countries in Southeast Asia by 2020 and in Asia by 2030 in terms of movies development.

“If we combine the country’s existing advantages, create favorable conditions for production and provide support, Vietnam can become a regional production center," said Alpha Beta representative.

Sharing the same opinion, Director of the Institute of Policy and Communication Development (IPS) - Vietnam Digital Media Association, Nguyen Quang Dong, said that the digital content industry (including games and entertainment services group of which VOD is an important component) has the potential to bring significant economic benefits to Vietnam.

Since then, many participants at the workshop said that the state management agency should build a flexible legal framework, creating favorable conditions for the development of this type of service, instead of combining it with the management of traditional broadcasting services.

Nguyen Quang Dong said: “The state management agency should study and build a new decree for the management of video-on-demand (VOD) services in particular and over-the-top (OTT) in general”.

The workshop takes place in Hanoi on May 14 (Photo: Organizer )

An equal game

Representative of IPS recommended that the revision of Decree 06 should be remained (focusing on traditional TV and radio broadcasting services) and in the direction of reducing strict regulations that are no longer suitable (related to promotional content, translation requirements ...) to reduce costs, increase the competitiveness of Vietnamese enterprises in the field.

Economist Konstantin Matties said that the regulation of ensuring the proportion of domestic programmes out of the total number of programs offered on demand on the internet is not lower than 30% will reduce the quality of the programs.

Besides, mandatory licensing regulations through requirements for establishment of a local facility or joint venture will create barriers to market entry, increase investment costs and risks, and be discriminatory between domestic enterprises and foreign businesses.

However, from a different perspective, representatives of many other units such as Vietnam Pay TV Association, Vietnam Digital Satellite TV, among others  said that domestic paid enterprises should be treated equally (in terms of management and licensing) with businesses that provide cross-border OTT services to Vietnam.

President of Vietnam Pay TV Association said “Each country has its own barriers and regulations for management. When entering to our country, foreign firms must comply with general regulations. We can not impose strict censorship on domestically produced films but treat more flexibly with the foreign-made content./.