Comparing the Current Status of Digital Content Production at VTC Station with Other Television Stations


Last year, 205 billion in cash revenue. According to the leader of this center: in 2019, the total revenue for television advertising is expected to decrease by about 5%, but the market share on digital content will increase from 30-40%.

In 2019, VTC Now expects to earn 10 billion VND, but for a self-accounting unit, this amount is only enough to support the "VTC Now army".

Former Director of VTC Station, Mr. Nguyen Kim Trung, said that the Station has set appropriate goals for development in 2019: “VTC Station will become a multimedia content production and distribution system. Good content production products on all platforms for the VTC ecosystem. Especially interactive and personalized content, applying information technology, especially Big Data, IOT, AI. Focus on developing 3 key channels, TOP 10 in the market VTC1, VTC3, VTC9. Develop online systems VTC Now, VTC News”. [5]

All of the above goals aim towards specific indicators for 2019: 80% of Vietnamese households can receive and watch VTC through various types and methods of multimedia content distribution; maintain total revenue at over 1,000 billion; maintain a growth rate of over 10%, increase the revenue ratio from digital content products to 10% of total revenue, and reserve 25 to 50 billion for investment, development and debt repayment," said Mr. Trung . [5]

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From there, VTC Station moves towards the 2020 - 2023 indicators: Keeping up with the shift rate between traditional television and new media trends; achieving and maintaining the No. 2 position in traditional television, being in the TOP 5 multimedia communication units in Vietnam in terms of both social influence and revenue". [5]

2.5. Comparing the current status of digital content production at VTC with other TV stations

Comparing the Current Status of Digital Content Production at VTC Station with Other Television Stations

2.5.1. Vietnam Television Station VTV

Vietnam Television Station VTV is still affirming its position as number 1 in the Vietnamese television industry. With its position, brand, and quality of VTV content.


also wants to become a giant in both traditional and digital markets. On April 24, 2014, VTV officially established the VTV Digital content center with the vision of becoming the largest multimedia content provider in Vietnam. Revenue reached thousands of billions by 2020. However, according to research, VTV Digital's total revenue in 2015 only reached approximately 37 billion VND. The revenue target of thousands of billions by 2020 is not easy to achieve.

The leader of Vietnam Television VTV said: in the coming time, they will build a digital content production and distribution system, build a multi-service ecosystem. Specifically:

- The digital content production and distribution system has the following workflow: Collect, process content – ​​Add Metadata, add added value, manage context – Package – Publish.

- Multi-services: television services, e-Learning, Healthcare, TV, Video chat, audio/video conf, other services on the internet, …

- VTV (television) ecosystem: production, management, distribution, business, customer connection management, subscriber management, customer terminals (viewing devices), strategy with TV manufacturers, Settopbox, ...

+ Building a unified, synchronized technology platform, from DC - towards cloud computing technology. The content production and resource management system must have Big data, data linkage, ...

According to the leader of Vietnam Television VTV, the new generation of television does not simply stop at broadcasting content on many devices, but it also has to demonstrate the ability to help viewers search and experience. Therefore - Metadata allows powerful search capabilities, personalizes search and content identification, and creates revenue sources.


new potential through enhanced product placement and targeted advertising.

2.5.2 Vinh Long Radio and Television Station

With more than 40 years of establishment and development, especially in the 10-year period of 2006 - 2016, Vinh Long Radio and Television Station has demonstrated its typical role in the field of radio and television. The station is a pioneer in self-producing programs for broadcasting, with the program building criteria: Serving what the audience needs, not what you have. Reality TV shows/game shows in the 9pm time slot every day always create great attraction for audiences nationwide. These programs are both light entertainment and promote national cultural identity, arousing love for the homeland and country. In particular, to serve the entertainment needs of the people, the station has invested in producing and purchasing the copyright to broadcast feature films, especially Vietnamese feature films.

According to survey data from the Audience Market Research Company in Ho Chi Minh City (Kanta Media Vietnam), Vinh Long Radio and Television Station is the leading unit in terms of audience index compared to other Radio and Television Stations in the Mekong Delta region and second in Ho Chi Minh City...

Vinh Long Radio and Television Station is also a public service unit that effectively implements the regulations on financial autonomy. Its operations also bring great socio-economic efficiency . Thanks to its efficiency and stability in operations, over the past 10 years, Vinh Long Radio and Television Station has been one of the leading public service units in contributing to the local budget revenue.

To achieve that success, in addition to the two channels THVL1, THVL2 and Vinh Long Radio Channel, Vinh Long Provincial Radio and Television Station also promotes content distribution on the internet. Specifically:

o Website: thvl.vn


o Internet TV: thvli.vn and THVLi application via mobile phone, tablet, SmartTV (Sony, LG, Panasonic).

o Youtube Channels: Vinh Long Television, THVL Entertainment, THVL Movies, THVL General, THVL Music, THVL Children.

o Daily Motion Channels: THVL Entertainment, THVL Movies, THVL General, THVL Music, THVL Children.

With nearly 500 employees, 2018 revenue reached nearly 2,000 billion VND, currently, the station has 6 channels on Youtube reaching over 8 million followers. An average of 8.5 million views/day. Currently, 03 Youtube channels of Vinh Long Radio and Television Station have been awarded the Gold Button by Pops Worldwide Company - one of the international YouTube partners for channels with the number of subscribers exceeding 1 million. At the same time, THVL's Youtube channel received the Most Viewed Online TV Channel Award at the POPS Awards 2015 and the TV Channel of the Year Award at the POPS Awards 2016.

With its proactiveness, creativity and innovation in content and form of program presentation, THVL has become the most favorite Radio and Television Station in the Mekong Delta region, especially THVL1 channel always has a high and stable audience index in the top of the country. The quality of the Station's programs is also demonstrated through its achievements at annual national television film festivals, National Press Awards, film festivals, documentary reports in the Southern region, nationwide and Southeast Asia.

Vinh Long Provincial Radio and Television Station always focuses on training and improving the political and professional qualifications of its staff. In 2018 - 2019, the Station focused on training and improving knowledge for staff in a number of new fields such as: digital marketing, digital television, multimedia communications, digital signal measurement, film scriptwriting, and technical


news writing skills... These are important knowledge that reporters, editors, and technicians need to grasp to keep up with the development of modern media methods. In 2018, the Station sent 270 staff to attend training courses. In the first 6 months of 2019, this number was 91 staff.

2.5.3. Ho Chi Minh City Television Station HTV

Ho Chi Minh City Television Station, abbreviated as HTV, is under the People's Committee of Ho Chi Minh City with its first broadcast being made at a crucial moment for the country, the evening of May 1, 1975.

From the 2 broadcasting channels of the early period of establishment, after more than 40 years of construction and development, HTV has made strong progress, with:

o 7 promotional TV channels (HTV9, HTV7, HTV1, HTV2, HTV3, HTV4, HTV-Sports)

o 10 pay TV channels (HTVC-Pure Vietnamese, HTVC-Family, HTVC-Women, HTVC-Movies, HTVC-Music, HTVC-Life Travel, HTVC+, HTVC-Coop, HTVC-Consumer Shopping, FBNC)

HTV has deployed two OTT services, HTVonline and Hplus, operating on iOS, Android, smart TVs, smart boxes, etc. HTV TMS has also cooperated with VNPT Technology to launch the HTVC tvod service package, with smart boxes operating on the Internet, etc. The station's digital content department continues to deploy the provision of HTV program content on Youtube and for a number of digital content businesses such as FPT Play, ZingTV, Viettel, HD Viet. In the coming time, the station will continue to promote the combination of online and broadcast content distribution, moving towards producing content suitable for many platforms, many audiences for many distribution environments.

2.6. Evaluation of success and limitations

2.6.1 Success


It can be seen that the launch of the OTT application VTC Now in April 2018 was the first successful step for the ambition to become the leading multi-platform content distributor in Vietnam. After more than 4 months of launch, with the copyright of ASIAD 2018, VTC NOW has had 1 million application downloads. This is also a spectacular number, beyond the expectations of VTC Station. Thanks to this strong spread, in 2018, VTC Station's advertising revenue also went against the general level. In the first 10 months of 2018, the revenue of the Advertising Center reached 370 billion, an increase of 255% over the same period in 2017. In the first 10 months of 2018, the revenue of the Advertising Center reached 370 billion, an increase of 255% over the same period in 2017.

Along with many major television and press names in the world such as Bloomberg, CBS News, NBC News, The New York Times, The Washington Post... VTC Now is on the list of channels receiving financial support from the Global Youtube Creative Fund, with an investment of 3 billion VND/year. VTC Station is supported by this Fund with financial support to develop authentic news content for publishing on digital platforms. All content is produced, managed and censored by VTC Station.

In addition, VTC Now also received an advertising package worth 7 billion/year. From here, business connection activities with other attractive digital content providers are deployed and cooperated by VTC Now for mutual development.

2.6.2 Limitations

a. Does not own its own platform, is not a strong technology business

Separated from VTC Corporation, VTC Station almost does not own any separate platform established in the digital environment. This is a weakness that has a negative impact on the development of the Station's digital content sector because the distribution of content on platforms of Facebook, Google, Youtube... is also


This means that revenue, audience, resources... are forced to be shared with these giants.

b. Lack of skilled personnel in digital content. Slow change in thinking. Traditional television thinking

Most of VTC's staff are familiar with the traditional environment. The more difficult it is to move to a new environment, the more difficult it is to find and train staff to serve digital content. Not to mention the constraints on income mechanisms and working environment, many staff with experience in digital content in other units will find it unconvincing to accept the invitation to join VTC.

c. There is no model in Vietnam to learn from:

This is a difficulty for any TV station/channel in Vietnam when deciding to "enter the digital content market". The simple reason is that there is no digital content production & business model that is truly a model for TV stations/channels to learn from.

In the world, the process of converting to digital methods of Media Corporations, Television Stations or printed newspapers has taken place. However, Vietnam's conditions have their own characteristics, so applying the world's prototype does not necessarily ensure success. Meanwhile, if we copy the production & business model of successful digital content enterprises in the domestic market to a Television Station like VTC, it will be a big mistake.

d. Lack of funding . VTC does not have much money to invest in digital product production.

2.6.3. Reasons for success and limitations

a. Reasons for success

Branded: This is probably the most socially recognized strength.


VTC Digital Television has been developing for more than 12 years. Although its development history has had many difficulties, in reality, VTC has still built a national brand. When mentioning VTC, the public immediately thinks of the digital television sector. This is something that not many TV stations in Vietnam have been able to do in the same time period as VTC.

As an official press agency: VTC is a national television station and the parent agency of two newspapers with a large readership: VTC News & Sports 24h. The role of an official press agency helps to stabilize VTC's political position. From a market perspective, especially the digital market, many investors and advertisers want to spend their budget on digital channels belonging to large, official units rather than on small channels outside the market because investing in small channels always carries many risks.

Owning copyright of 15 TV channels: VTC is one of the few television systems in the country with such a large number of TV channels. It is worth mentioning that VTC's 15 TV channels have the participation of diverse content groups: News/ Sports/ Entertainment/ Science/ Children/ Music/ Feature films/ Agriculture/ Culture/ Natural disasters - Weather... This is a great advantage when participating in the digital market.

Owning a multimedia communication channel: VTC is currently a Television Station.

VTC owns 2 types of press including: Television/ Electronic Newspaper. Most recently, when participating in the digital market, VTC owns additional communication channels on social networks and communication channels on the OTT system. Not to mention, VTC has the governing body VOV - the largest unit in the country in the field of radio. This advantage is not available to all TV stations in Vietnam.

Possessing a rich news content repository: Compared to VTV, news resources

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