Channel 3 eyes ad discounts
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Facing a drastic cut in its audience, analog TV station weighs options
Channel 3 is still trying to persuade the broadcasting regulator to keep its analog TV programmes airing on cable and satellite networks but is reportedly preparing to offer its advertisers a whopping 70-per-cent discount if those networks have to pull its content.
The broadcasting committee of the National Broadcasting and Telecommunications Commission (NBTC) on Monday ordered all cable/sat operators to stop showing Channel 3 because its programmes are not in the new digital format.
Bangkok Entertainment Co (BEC), operator of Channel 3, submitted a written proposal on August 8 to the broadcasting committee that it be broadcast via any platform based on the concept of real-time pass-through.
Market watchers say this would make Channel 3 available on digital, cable and satellite platforms.
Wannee Ruttanaphon, chairwoman of IPG Mediabrands, said yesterday that she was quite concerned about this problem because advertising agencies and advertisers would be hard hit if Channel 3 was abruptly discontinued on cable and satellite TV, which represent 70 per cent of the 23 million households nationwide.
“In a recent talk with BEC, the channel has prepared a remedy for its clients. For example, advertising rates might be cut by 70 per cent in accordance with the loss of the audience base on the cable and satellite platforms,” she said.
Wannee, who is also chairwoman of the Media Agency Association of Thailand, said her company was also analysing the possible impacts from the disappearance of Channel 3 from cable/sat TV.
The study is expected to be completed by next week and presented to its clients as a preparatory measure.
The unplanned shutdown of Channel 3, which is one of the most popular stations for advertisers, would be chaotic, because her agency worked on deals with the station’s clients one month in advance, she said.
Selling and buying advertising this month and next month would still progress as usual, she added.
Another source from an ad agency said it had prepared several solutions to the possible problem. The first was refunding money. The second involved recommending to clients that they shift to other media.
Mixed opinions
However, opinions from major ad and media agencies remain mixed on the possible repercussions from the blackout of Channel 3.
But many hope that it will opt to pick some of its most famous programmes to simulcast via the digital TV channels obtained by its sister company.
Rathakorn Surbsuk, a trading partner who is responsible for strategic development and value creation in media buying of GroupM Thailand, said it was clear that Channel 3 would no longer be carried on local cable or satellite because of the resolution of the broadcasting committee on Monday.
“I personally believe that the Channel 3 operator and the NBTC will be able to manage this problem soon to avoid an impact on viewers,” he said.
For media and ad agencies, his agency worked on deals with the station’s clients one month ahead. If the crisis could be solved by September 23-24, it would not affect the agency’s media planning for the coming month.
Some analysts at Thanachart Securities and Financia Syrus believe the regulator’s decision created a risk for BEC due to the reduction of its audience base.
Another risk factor would be an increase in operating costs from annual licence fees incurred if the company simulcasts its analog programmes over a digital channel run by its sister company.
