MCOT chairman worried about financial performance, hopes for EPL deal
After being in office for almost six months, the head of MCOT has expressed disappointment in the financial results of the state-run media company after it recorded just 6-per-cent growth in first-quarter revenue, while the current quarter also looks slow
Thus management hopes that if MCOT wins a sub-licence deal with CTH to televise English Premier League soccer matches for the coming three seasons on its free-TV and radio platforms, business performance will improve in the near future.
MCOT chairman Sutham Saengpratoom said he was worried about the situation, as the 36-year-old mass media and communications organisation had had a tough time transitioning to a commercial TV broadcaster from an official regulator.
The National Broadcasting and Telecommunications Commission last week ordered MCOT to relinquish the analog frequency it uses for Modernine TV within five years. As well, its broadcasting-concession contract with Bangkok Entertainment Co (BEC) to operate Channel 3 will expire in March 2020. And another concession contract, with TrueVisions to run its subscription-based TV business, will also end in 2020.
Under the contract with BEC, MCOT earns concession fees of about Bt200 million a year. TrueVisions pays 6.5 per cent of its total income as a concession fee to MCOT as well as 6.5 per cent of its annual advertising revenue.
“To prepare for these changes, MCOT must put its focus on commercial activities to improve the ratings and revenue of Modernine TV and other business units,” Sutham stressed.
MCOT reported that its revenue from January to March grew by only 6 per cent to Bt1.38 billion from Bt1.31 billion in the same period last year. Revenue from TV business registered only 5-per-cent year-on-year growth, but if compared with the fourth quarter of 2012, it suffered a 15-per-cent drop.
The chairman is also worried about what is going on in the current quarter. Thus at tomorrow’s board meeting, he believes that the plan to acquire the EPL sub-licence from CTH, a leading pay-TV operator, will be approved.
Sutham believes that the EPL telecasts would boost TV ratings and revenue in the second half of this year and for the next two soccer seasons, as the tournament is an extremely popular sports event with numerous local fans.
Under the agreement, MCOT would have the right to televise 17 key live matches per season and to air live audio of 380 matches a season via its nationwide station FM99 Active Radio.
Additionally, MCOT would obtain the rights to organise on-the-ground activities related to the EPL throughout the coming three seasons.
The marketing team expects to receive at least Bt270 million from sponsors after winning the sub-licence.
An industry source said MCOT would sell a sponsorship package priced at Bt50 million for the live matches via television, radio and related activities.
