Satellite TV receiver sales dented by digital coupons

WEDNESDAY, DECEMBER 03, 2014
Satellite TV receiver sales dented by digital coupons

THE DIGITAL TV coupon giveaway by the broadcasting regulator has crimped the sales of major distributors of satellite TV receivers, so some will launch new models of high-definition satellite TV set-top boxes and terrestrial-based digital TV receivers.

The Nation heard this from top executives of PSI Holdings, Infosat Intertrade and IPM TV, which together control more than 70 per cent of unit sales. 
Manop Tokarnka, president of IPM TV, said that after the National Broadcasting and Telecommunications Commission (NBTC) provided free vouchers to households in October, the company witnessed a slowing of purchases from customers waiting for the subsidy from the watchdog. 
The sales volume of satellite TV receivers for this year might be 25 per cent lower than projected due to the vouchers as well as the weak purchasing power of locals. 
IPM TV has prepared a strategy to offset lost business. It plans to become a TV production house for digital terrestrial stations. 
The company has produced two soap operas for Thai TV and Loca and sold the broadcasting rights of international programmes to three other digital TV channels, but he could not identify them.
Next year would see an increase in dramas and other TV programmes made for digital TV. 
Revenue from this business is expected to expand to 30 per cent of total revenue from 20 per cent this year, while the share of satellite TV and digital TV receivers would shrink to 50 per cent from 60 per cent. Advertising from its pay-TV service will stay at 20 per cent. 
IPM TV will also focus more on selling digital TV receivers and satellite HD TV boxes. 
At Infosat Intertrade, sales of satellite TV receivers are still rising this year, mostly driven by new demand for C-band satellite TV set-top boxes after the junta seized power from the government and forced all free-to-air satellite TV operators to encrypt their signals before transmitting programmes to homes.
Old set-top boxes were incompatible, so viewers had to replace them with more advanced models.
“After the coup, we enjoyed 50-per-cent growth from the same period last year,” managing director Niran Tangpiroontham, said.
Next year, Infosat will introduce the latest digital TV receivers and antennas. The model has already been approved by the NBTC, while customers can use the NBTC’s Bt690 voucher to buy the digital TV set-top boxes, which are also priced at Bt690. 
The company aims to keep margins low from selling the set-top boxes but it has high hopes of selling 1 million antennas next year.
A source at PSI Holding – the largest player – said next year it will launch a new version of satellite TV set-top box, commonly known as the “S2”, that can work with HD content from 27 digital TV channels. 
The company believes that these new products can help maintain its market share despite the high competition from the arrival of digital terrestrial TV boxes.