Demand and Supply: SingTel and Starhub
Demand
As the broadcast of the Barclays Premier League (BPL) was being cross-carried between SingTel and Starhub, the demand for SingTel’s mioTV decreased. The SingTel had differentiated its sports package from Starhub as they are able to broadcast the UEFA Champions league and UEFA Europa League. It was quoted from The New Paper Apr 27 2013, “We will ensure that existing SingTel customers who are on contracts will not be affected. However, those who wish to watch BPL on its own will most likely have to pay significantly higher monthly fees.” As a result, mioTV subscribers who may only want to watch BPL (taste and preference) may switch to Starhub as they would want to watch football at a lower cost. Taste and preference is one of the five determinants of demand. If mioTV subscribers choose to turn to Starhub cable TV, the demand for SingTel’s mioTV will decrease. Hence, this will cause the demand curve for mioTV to shift to the left.
As the Starhub is also broadcasting the BPL, demand for Starhub’s cable TV will be on the rise as consumers are now able to achieve their needs with the their desired subscribers, Starhub. Furthermore, Mio TV’s subscribers who prefer to watch the BPL itself (taste and preference) at a lower price may switch to Starhub’s Cable TV. Hence, Starhub will be able to attract more BPL viewers with its lower cost. As taste and preferences being one of the determinants of demand which affect the demand curve, the increase in demand for Starhub’s cable causes the demand curve for Starhub’s cable TV to shift to the right, making it a popular BPL broadcaster for BPL watches.
Supply
As for the supply for SingTel’s mioTV, it will increase due to the number of sellers in the market. Since Starhub is also broadcasting BPL now, the number of sellers for BPL also increases. As the demand for SingTel’s mioTV decreases and supply increases, this causes their market equilibrium price to decrease. As a result, it causes a downward pressure on the
As the broadcast of the Barclays Premier League (BPL) was being cross-carried between SingTel and Starhub, the demand for SingTel’s mioTV decreased. The SingTel had differentiated its sports package from Starhub as they are able to broadcast the UEFA Champions league and UEFA Europa League. It was quoted from The New Paper Apr 27 2013, “We will ensure that existing SingTel customers who are on contracts will not be affected. However, those who wish to watch BPL on its own will most likely have to pay significantly higher monthly fees.” As a result, mioTV subscribers who may only want to watch BPL (taste and preference) may switch to Starhub as they would want to watch football at a lower cost. Taste and preference is one of the five determinants of demand. If mioTV subscribers choose to turn to Starhub cable TV, the demand for SingTel’s mioTV will decrease. Hence, this will cause the demand curve for mioTV to shift to the left.
As the Starhub is also broadcasting the BPL, demand for Starhub’s cable TV will be on the rise as consumers are now able to achieve their needs with the their desired subscribers, Starhub. Furthermore, Mio TV’s subscribers who prefer to watch the BPL itself (taste and preference) at a lower price may switch to Starhub’s Cable TV. Hence, Starhub will be able to attract more BPL viewers with its lower cost. As taste and preferences being one of the determinants of demand which affect the demand curve, the increase in demand for Starhub’s cable causes the demand curve for Starhub’s cable TV to shift to the right, making it a popular BPL broadcaster for BPL watches.
Supply
As for the supply for SingTel’s mioTV, it will increase due to the number of sellers in the market. Since Starhub is also broadcasting BPL now, the number of sellers for BPL also increases. As the demand for SingTel’s mioTV decreases and supply increases, this causes their market equilibrium price to decrease. As a result, it causes a downward pressure on the