ThaiTV3 gains from rivals' internal woes

As of February 13, AGB Nielsen reported that ThaiTV3, which is operated by Bangkok Entertainment Company (BEC), had acquired 30 per cent of advertising expenditure, after becoming the market-share leader in November after the floods. ThaiTV3 also gained in audience share, rising to 32.2 per cent from 28 per cent in December.

Meanwhile, Bangkok Broadcasting and Television’s Channel 7 lost its leadership late last year. The channel has suffered further since then, as its audience share dropped to 46.8 per cent in February from 49.2 per cent in December. Though Channel 7 saw an improvement in its share of the ad-expenditure market after the devastating floods in November, it remained No 2 with 29.7 per cent.

An analysis by CIMB Securities (Thailand) reported that BEC was in the best position to capture the peak advertising-expenditure cycle of the free-TV platform from this year through 2014. Last year BEC gained in shares of both advertising spending and audience from its major competitor, MCOT’s Modernine TV.

CIMB’s analysis also saw some setbacks at BBTV, the operator of Channel 7, and Modernine TV due to conflict among management, board and shareholders. For example, in late 2011, BBTV’s board reshuffled the management team, including not renewing Surang “Big Sister Daeng” Prempree’s employment contract.

Meanwhile, MCOT’s board terminated its president, Tanawat Wansom, on November 15. Then the Finance Ministry replaced all the board members on January 25. While the board looks for a new president, Chakraphan Yomchinda, vice chairman and acting president, hopes that MCOT’s news programming revamp next month will boost the confidence of advertisers. Last year, MCOT’s revenue slipped by 1 per cent to Bt5.31 billion and net profit by 5 per cent to Bt1.37 billion. 

Kematat Paladesh, MCOT’s vice president for marketing, said the company also hoped the revamp would improve the ratings and revenue of the channel as well as increase market share to 20 per cent of overall advertising spending via free-to-air television channels this year, from 18 per cent now.

At Channel 7, last year’s management reshuffle appears to be coming back to haunt BBTV. On Monday, the channel’s ex-boss Surang announced that the “Miss Thailand Universe” competition would be aired on the Royal Thai Army’s TV5 instead of Channel 7, which had been a media partner for this contest for almost three decades.

On behalf of the national director, Surang has gained the exclusive right to send a Thai representative to the Miss Universe Pageant. The Miss Universe Organisation, a joint venture between Donald Trump and NBC Universal, will hold the next contest in December.

Surang also has other exclusive rights of major events including the right to send a national representative to the Miss Earth Pageant and to organise Honda LPGA Thailand. But under the current contract, the local Ladies Professional Golf Association event must stay with Channel 7 for the next two tournaments.

The Miss Universe development alone could cost Channel 7 millions of baht in business losses, because the annual beauty contest is supported by a number of key sponsors such as Scotch Industrial (Thailand) and Singha Corporation.

Lt-General Wichien Manyahong, adviser to the president of Royal Thai Army Radio and Television Station, said TV5 welcomed further cooperation with Surang after being the official broadcasting partner for the contest.

An industry observer said that in the country’s Bt101-billion advertising industry, television had retained its leading role, with a 60-per-cent market share. Of that, more than 50 per cent is dominated by Channel 7 and ThaiTV3. Thus raising advertising rates for selected programmes and expanding prime-time slots in line with improving programmes during non-prime time should be the best way for all players to secure growth. 

But Channel 7 is reportedly focusing on its prime-time shows, particularly soap operas and news programmes, the observer said.

In the meantime ThaiTV3 is underlining non-prime-time programmes. For instance, it is the official broadcasting partner of Euro 2012. This Fifa soccer tournament will be aired mainly in non-prime time, so the broadcaster believes this can boost revenue during that period.