VTV plans CCTV-style airtime auction

The announcement has added fuel to media agencies' discontent with a broadcaster that has consistently raised airtime prices despite falling viewer numbers.

Details for how the auction will be managed and which programmes and timeslots will be affected are unclear.

 “We can only assume VTV is using China’s TV auctions as inspiration. The current high demand has given the broadcaster the freedom to try different systems," said Nicole Vooijs, managing director of MindShare Vietnam.

"If VTV's rival channels decide not to follow suit, they might end up with more business," she hinted. "Especially strong local channels like Danang TV and Can Tho TV. They can benefit as they are in direct competition with VTV in their cities and provinces."

Advertisers would lose out from an auction, she said. “It would not benefit anyone in the industry except the media suppliers; an auction would make advertisers more dependent on TV stations and it might benefit bigger advertisers over smaller ones."

She added: "We would prefer to move towards a more professional model of costing control; CPRP deals with rewards for volume, timing and allocation. TV auctions should only be used for special events like the Olympics.”

VTV, or Vietnam Television, is the only nation-wide TV broadcaster in Vietnam. The government-run station is the leading news and media source in the country with five channels. In the last decade, VTV has also diversified into films, pay-TV and online and print media.