BT2.5 BN from 1st of 1 Sky: Grammy
GMM Grammy expects 1.5 million of its 1 Sky set-top boxes to be sold in the first year and that at least Bt2.5 billion will be generated following the launch of its broadcasting-platform service this November.
The service will be operated by 1 Sky Multimedia, a new GMM Grammy subsidiary set up with registered capital of Bt100 million.
The 1 Sky set-top box will be offered in three models. The Standard model will be available in November, with the platform allowing customers to access pay-per-view (PPV) services as well as free-to-air channels from Bt1,500 monthly per box.
The other two, to be launched later, are the Easy model at Bt500 monthly for free-to-air channels and Genius HD at Bt2,500 for high-definition channels.
Customers can plug all three models into C and KU Band satellite dishes.
Vilasinee Chivanond, managing director of 1 Sky Multimedia, yesterday said the number of subscribers is projected to hit 334,000 by the end of next year, followed by 459,000 in 2013 and 584,000 in 2014.
Premon Pinskul, chief financial officer of GMM Grammy, said revenue would come from sales of set-top boxes, subscriptions, sponsors and advertising, and PPV services.
The company expects to generate Bt2.5 billion in the first year, 45 per cent of which will be from sales of set-top boxes, 32 per cent from subscriptions and 23 per cent from PPV, sponsorship and ads.
"These revenue proportions will change in the next three years. Subscriptions will [eventually] take the lion's share of 60 per cent, while sales from set-top boxes will drop to 27 per cent," he added.
To achieve this ambitious goal, the company has invested about Bt2.1 billion on content development. This comprises Bt650 million for imported entertainment and family content, and Bt1.5 billion for the licensing of overseas sports events.
Additionally, the company will allocate Bt100 million for marketing promotion to build brand awareness of 1 Sky until the end of next year. The promotion will be conducted on various platforms, from mass media to dealers and business partners.
Premon said the company next year would add five channels at a cost of at least Bt500 million.
Paiboon Damrongchaitham, chairman of GMM Grammy, said: "Now we have shifted our focus on expansion into a leading broadcasting-platform provider, after GMM Grammy has emphasised for the last 28 years media and entertainment content production and provision."
He said the revenue contribution from new business was expected to hit 28 per cent and generate a margin of about 35 per cent by 2014, with average annual growth of 12 per cent from this year's estimate of just 2 per cent.
