Production houses look to the future
Local leading production houses are planning to invest in new studios with cutting-edge technology to meet the huge demand from new TV broadcasters, as the country moves into the age of digital terrestrial TV.
According to the National Broadcasting Master Plan, the National Broadcasting and Telecommunications Commission (NBTC) plans to have 48 digital terrestrial TV channels – 12 channels for public service; 24 channels for commercial purposes; and a remaining 12 channels for community-based services.
This would also open more doors for related supply chains in the TV industry, dominated by six incumbent TV broadcasters.
Somboon Cheewasutthanon, managing director of Matching Maximize Solution Plc, told The Nation that his company planned to invest in new studios and warehouses on the outskirts of Bangkok. The Bt735-milion investment in the project will come from new capital raised from shares to be sold this month.
Of that investment, Bt250-300 million will be used to buy a 50-rai plot of land and the remainder will be allocated for the construction of new studios and warehouses, Somboon said.
The new complex will house indoor, outdoor and underwater studios, an equipment warehouse and a new office building. Construction will begin by end of this year with completion expected in a couple years.
Somboon added that his new studio complex would be the biggest film production house in Thailand with services offered to Asean countries. The company will also provide both film and TV productions once the complex is up and ready.
Matching Maximize Solution currently produces three programmes – “Plod Nee”, “Plod Nee Special” and “Kop Dek Sang Ban”, aired on BBTV Channel 7, and “Cheeze TV DIY” for True Visions Channel 85.
Revenue from TV production accounts for 30 per cent of the company’s total, while 40 per cent comes from equipment rental. TV commercial production, event organising and magazine production provide the remainder.
STRONG RELATIONSHIP
An analyst at Asia Plus Securities said that Matching Maximize Solution also had a strong relationship with BBTV Channel 7, because BBTV Production Co, was its major shareholder. However, BBTV Production’s share of the company has fallen to 37.9 per cent from 68.5 per cent after trading new shares. Additionally, BBTV Production is wholly owned by Bangkok Broadcasting and Television (BBTV), the operator of Channel 7, under the broadcasting concession contract with the Royal Army.
The analyst also pointed out that if Channel 7 could grab three licences to operate commercial digital TV channels after the NBTC’s auction in September, this would create more windows for Matching Maximize Solution to produce TV programmes for the broadcaster in the future.
Apart from Matching Maximize Solution, other leading TV production houses like Kantana Group, also plan to invest in new TV production equipment to support new demand after 24 commercial digital terrestrial TV channels are launched. Currently, its revenue from TV productions supporting free-TV channels accounts for 60 per cent of total revenue. The company projects that will rise to 80 per cent after the 24 digital TV channels arrrive.
However, Kantana Group insisted that it had no plans to join the spectrum auction of digital TV licences and said it was happy to be content producer.
Meanwhile, Workpoint Entertainment, which aims to have two licences to run commercial digital TV channels for a variety and family programmes, is also investing in digital TV.
In a previous interview with The Nation, Panya Nirankul, the chief executive officer of Workpoint Entertainment, said his company planned to invest in eight new studios on a 3-rai plot adjacent to its existing eight studios. However, he declined to comment on how much the studios would cost.
